This was disclosed in its unaudited results for the first quarter ended March 31 2023.

The group said that it recorded “a 14.2 per cent year-on-year decline in gross earnings to ₦1.56bn (Q1 2022: ₦1.82bn), driven by a 20.5 per cent dip in revenue following a period of high economic and socio-political uncertainty. On the other hand, other income grew by 57.7 per cent, offsetting the drop in revenue.

“The group’s top-line revenue fell by 20.5 per cent driven primarily by reduced business transactions and consumer spending that resulted from the recently concluded general election and the CBN’s attempt to phase out Nigeria’s old higher denomination of banknotes.”

Transaction fees, which accounted for 51.5 per cent of revenue, dropped by 30.6 per cent YoY to ₦685.9 m (Q1 2022: ₦988.1 m) due to reduced business activities. Treasury investment income (31.1per cent of revenue) also dropped to ₦414.7 m in Q1 2023 (Q1 2022: ₦520.5 m), primarily driven by relatively lower yields on the Group’s treasury investment portfolio owing to the unfavourable market conditions and uncertainties during the general election period.

However, the Group recorded a 44.6per cent listing fees growth to ₦179.2 m in Q1 2023 from ₦123.9 m in Q1 2022. Growth in listing fees was driven by increased demand for listing services by domestic firms. Also, rental income (2.7per cent of revenue) earned from NGX Real Estate, lease of office floor spaces, recorded a 32.2per cent increase to ₦36.0 m in Q1 2023 from ₦27.2 m recorded in Q1 2022. Other fees representing rent of trading floor, annual charges from brokers, dealing licenses, and membership fell by 1.2per cent to ₦16.5 m in Q1 2023 (Q1 2022: ₦16.9 m).

NGX Group’s profit before income tax expense increased by 21.5 per cent YoY to ₦412.2m in Q1 2023 from ₦339.2m in the corresponding period in 2022 due to an improved share of profit-equity accounted investees and a fall in finance cost. Profit for the period recorded a 109.0 per cent increase to ₦310.0 m in Q1 2023 from ₦148.3 bn in Q1 2022, resulting in significant growth in profit after tax margin to 23.3per cent in Q1 2023 from 8.9per cent recorded in Q1 2022.

Commenting, the Group Managing Director/Chief Executive Officer, Oscar Onyema, said, “Despite the challenging macroeconomic environment during the quarter amidst cash and energy scarcity, and political tension from the 2023 elections, the Group remained resilient. We are pleased to announce a 109 per cent increase in net profit, achieved through the implementation of cost-saving measures that minimised the impact of revenue reduction, just as we are exploring new and innovative ways to capture more market share and appeal to a broader demographic.

“The Group will continue investing in innovative marketing strategies to appeal to the changing consumer preferences, as well as explore opportunities to expand product line, portfolio mix, and penetrate new markets. We stay committed to our long-term growth strategy and are confident in our ability to navigate the current challenging environment and create value for our stakeholders.”