The Group’s unaudited financial results for the period ended September 30, 2026, showed revenue of ₦27.26 billion, up from ₦15.16 billion recorded in the corresponding period of 2025. Profit before tax climbed by 83.3 per cent to ₦20.58 billion, compared with ₦11.23 billion a year earlier.

Profit after tax also rose significantly to ₦14.69 billion from ₦7.88 billion, representing an increase of approximately 86 per cent. The profit before tax recorded in the nine-month period has already exceeded the ₦15.6 billion reported for the whole of 2025.

The growth comes amid increased activity in Nigeria’s capital market, particularly following the Central Bank of Nigeria’s directive requiring banks to meet revised minimum capital requirements by March 2026.

In response, lenders raised fresh funds through rights issues and public offers, bringing more investors into the equities market. Banks including Fidelity Bank, FCMB and Wema Bank were among the institutions that accessed the market during the recapitalisation exercise.

The increased participation of investors helped boost trading activity, providing additional income for NGX Group through transaction-related fees. Listing fees also contributed to the growth, although transaction fees remained the dominant revenue source.

According to the nine-month results, transaction fees more than doubled to approximately ₦20.68 billion from ₦9.74 billion in the same period of 2025. Listing fees rose to about ₦3.73 billion, reflecting increased fundraising and listing activity during the period.

Beyond trading and listing services, NGX Group benefited from its investments in other capital market institutions. Its share of profits from associates increased by nearly 70 per cent to ₦5.72 billion, strengthening its overall earnings.

One of its significant investments is its 43.5 per cent stake in Central Securities Clearing System Plc (CSCS), which provides clearing, settlement and depository services for the Nigerian capital market.

However, the latest results also reveal rising cost pressures. Operating expenses increased substantially during the nine-month period, while the third quarter recorded a particularly sharp rise in expenditure.

Revenue for the July-to-September quarter increased by 36.4 per cent to ₦9.66 billion from ₦7.08 billion a year earlier. Despite the growth, profit after tax declined by approximately 7.1 per cent to ₦4.33 billion from ₦4.66 billion.

Personnel expenses more than doubled during the quarter, while other operating costs also increased. The rise in expenditure reduced the benefit of higher revenue and highlighted the challenge of maintaining profit growth as the business expands.

Another concern is whether the strong earnings performance can be sustained after the banking recapitalisation exercise. Although insurers’ capital-raising activities and potential new listings could generate additional business, their contribution may not match the scale of the recent banking fundraising wave.

The Group’s future performance will also depend on the level of investor participation, trading volumes and the number of companies seeking to raise capital through the exchange.

NGX Group’s balance sheet remains relatively strong, with shareholders’ equity reaching approximately ₦61.07 billion as of September 30, 2026. However, the sustainability of its earnings growth will depend on its ability to maintain market activity while controlling operating costs.

Potential large listings, including the long-discussed Nigerian National Petroleum Company Limited (NNPC) listing, could provide another boost if they materialise. However, the timing and completion of such transactions remain uncertain.

For investors, the latest results present a combination of strong earnings growth and emerging cost concerns. While the recapitalisation-driven market boom has delivered significant benefits to NGX Group, sustaining that momentum will require continued trading activity, new capital-raising opportunities and stronger control of expenses.

Reporting by TalkNaijaMedia