NSE listing fees rose by 228% for 2014

The Nigerian Stock Exchange (NSE) has reported 228 per cent growth in listing fees for year ended December 31, 2014 audited report and accounts.

As NSE witnessed five listings last year, its listings fees had moved from N468.7 million in 2013 to N1.5 billion recorded in 2014.

On average listing fees, the NSE made N0.3 billion from the five companies last year.

Similarly, transaction fees stood at N4.1 billion, 32.2 per cent above the N3.1 billion posted in prior year results.

The significant growth in listing fees and transaction fees trigged the bourse revenue by 43 per cent from N4.57 billion in 2013 to N6.5 billion recorded in 2013.

The Chief Executive Officer of NSE, Mr. Oscar Onyema, said the results indicated the bourse strongest performance in recent years despite the challenging market conditions that prevailed throughout 2014.

He noted that the dwindling oil prices that affected the global market also eroded investors’ sentiment trading in the capital market.

According to him, The NSE closed the year with an impressive growth in six years, with total income at N8.1 billion, 47per cent up from N5.4 billion in 2013, and an operating profit margin of 50per cent.

“Transaction fees were our largest revenue item, growing 32per cent year-on-year, and accounting for 52per cent of total revenues.

“Our listings program also performed well, soaring 228per cent as a result of five new equity listings. At the same time revenues from strategic investments jumped 75per cent, comprised primarily of interest and dividend income.

Mr. Onyema noted that the NSE business in 2014 was greatly impacted by domestic and global shocks, including the international price of crude oil that significantly pressure on the naira.

Part of the challenges he stated include, the buildup towards the 2015 elections, and festering Boko Haram insurgency in Northwestern parts of the country.

“These, compounded by the impact of tightening monetary policy throughout the year, contributed to the 'flight to quality' strategy adopted by foreign investors, which manifested in a sell-down of securities and repatriation of funds, as a response to currency risk,” he explained.

Going forward, he said, the NSE would continue to deliver on its strategic commitments, drive operational excellence, and create value for the Exchange and various market stakeholders.

“We will engage the global financial community as an African hub for entrepreneurial growth, and look to attract more order flow into the market, especially domestic flows.

“As we work with the regulator and other market intermediaries to streamline the cost of participation in our market, we will intensify efforts around delivering a clear value proposition for issuers, and developing a truly sustainable market.

“We will concentrate our efforts on delivering a strong value proposition, extending our global reach, and developing new business opportunities for the Group.

“A strengthening US dollar may precipitate additional foreign portfolio investment reversal, however, the deeply reduced prices of our listed securities, present domestic investors with an opportunity for informed long-term investing,” he added.