Thursday, July 18, 2019 / 03.00PM / Bukola
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The National Association of Securities Dealers OTC Exchange Recorded a 300% rise in its revenue for its 2018 financial year. The rise in revenue increased to N30.77bn in 2018 from N4.36bn in the 2017 financial year.
External auditors Deloitte and Touche and the Audit Committee confirmed that the financial statement of the Exchange, complied with the provisions of the International Financial Reporting Standards, IFRS, and the Companies and Allied Matters Act, CAMA
Speaking on the financial performance for 2018, Mr. Olutola Mobolurin, Chairman NASD, said the company earned N134.4 million trading commission in the year under review in comparison to N23.1 million achieved in the preceding year (2017), representing a 481.82% increase over the previous year’s performance.
The growth in trading commission was as a result of an increase in activities carried out by the respective participating Institutions.
On the free membership fees, the company earned N24.9million in 2018 a 1.6% increase and from N24.5 million in the preceding year (2017).
Mobolurin also highlighted the following achievements in the trading activities of NASD OTC for the 2018 financial year;
Mobolurin emphasised the need for increased awareness about the OTC market in the financial ecosystem and the need for continuous support from the Securities and Exchange Commission.
The Managing Director of the NASD OTC Mr. Bola Ajomale, in his remark, also noted that the launch of the NASD Enterprise Portal achieved a new revenue line of N7.5million for the exchange.
Ajomale was equally happy to inform market operators that the exchange crashed its trading costs from over N60million in 2017 to N2million in 2018, thanks to the deployment of technology.
“ By increasing our deployment of locally developed technology, we have also been able to significantly reduce our foreign exchange risk while supporting the inevitable growth of Nigeria’s Fintech Industry. Interestingly, we noted no change in revenues that were not technology-driven,”, Ajomale said.
Giving further insight Ajomale said the overall Unlisted Share Index appreciated by 19.7% between January 2018 and December 2018, while Capitalization rose 21.8% from N402.51billion in January 2018 to N514.77billion as at December 31, 2018.
For the 2019 outlook, he was optimistic that with a continuation of the established trend of driving efficiency, opening new opportunities and creating liquidity, the NASD OTC was confident of delivering sustainable and attractive returns.