NGX Q1 profit jumps 94% as trading-fee income soars 189%

The Nigerian Exchange Group Plc (NGX Group) has reported a sharp jump in earnings for the first quarter of 2026, powered by a surge in trading on the local bourse and the resulting boom in transaction fees.

Unaudited Q1 2026 results show profit after tax rose 93.67% to ₦4.09 billion (about $2.98 million). Total income for the period climbed 70.51% to ₦7.80 billion ($5.67 million), underscoring how closely the group’s performance is tied to market activity on the exchange.

The biggest driver of NGX’s Q1 performance was transaction fee income, which nearly tripled. Transaction fees surged 189.08% to ₦5.80 billion ($4.22 million), making them the single largest contributor to the group’s revenue base.

The exchange’s fee windfall mirrors a busy quarter for Nigerian equities. Investor gains on the exchange reached ₦29.83 trillion ($21.69 billion) in Q1 2026, supported by a sharp rise in valuations. Market capitalisation climbed 30.02% to ₦129.21 trillion ($93.98 billion) as of March 31, 2026.

According to the company’s disclosure, the spike in trading activity reflects three main factors:

• Improved investor sentiment
• Rising retail participation via digital platforms
• Higher overall market turnover

Combined, these trends lifted trading volumes and drove up the transaction fees that form the core of NGX’s operating income. The near tripling of transaction fee revenue illustrates how NGX’s business scales when investor activity increases.

While transaction fees dominated growth, the group’s other income segments did not move in lockstep. Technology and data-related revenue, recorded under “other income”, fell sharply, dropping 75.41%. No further breakdown of this decline is provided in the available figures, but it weighed on what would otherwise have been an even stronger income mix.

Beyond its core exchange operations, NGX continued to benefit from strategic holdings in market infrastructure firms. Income from equity-accounted investees – notably its stakes in Central Securities Clearing System Plc and NG Clearing Limited – rose significantly. The share of profit from these associates jumped 241.94% to ₦2.03 billion ($1.48 million), adding a substantial layer to overall earnings.

Operating expenses also rose but at a slower pace than income. Total operating costs increased 58.62% to ₦3.85 billion ($2.80 million), driven mainly by higher personnel costs and administrative spending. Because revenue expanded faster than costs, NGX was able to convert stronger top-line performance into much higher profitability.

Management says the Q1 outcome reinforces the link between trading volumes and earnings. With transaction fee income now the dominant revenue line, the group’s financial results remain highly sensitive to shifts in investor participation and market liquidity.

Looking ahead, NGX’s leadership is framing this period as a foundation for further growth. Group managing director and chief executive officer Temi Popoola told shareholders at the company’s annual general meeting that the “next phase” for the exchange is focused on scaling infrastructure, broadening participation, and opening new channels for capital formation.

One factor that could support this next stage is the recent restoration of Nigeria’s Frontier Market status by FTSE Russell. The move reintegrates Nigerian assets into global investment indices, a change that may attract fresh portfolio flows and deepen activity on the exchange. Popoola described the reclassification as a milestone that reflects both collaboration across Nigeria’s capital market ecosystem and deliberate efforts to strengthen the market infrastructure underpinning efficient trading, transparency, and investor access.

The Q1 2026 numbers suggest that if this renewed international visibility translates into higher trading volumes, NGX could see further upside in fee income and profits. Equally, the steep drop in technology and data-related income highlights that the group’s diversification efforts face their own pressures, even as its core trading business enjoys a cyclical upswing.

Update: This story is based on NGX Group’s unaudited Q1 2026 financial statements and related disclosures available as of publication.