NSE Records Eight Per Cent Drop In Revenue

The Nigerian Stock Exchange (NSE) on Monday  reported  eight per cent decline in revenue for the financial year ended December  31,  2018.


The Chief Executive Officer of the NSE, Mr Oscar Onyema, made the disclosure on Monday at the 58th Annual General Meeting of the exchange, held in Lagos.
Onyema said the exchange recorded a revenue of N7.67 billion, compared with N8.30 billion achieved in the corresponding period in 2017.


He attributed the decline to uncertainties as investors sought guaranteed investment asset classes.
Onyema added that the listings revenue stream was the most impacted with a drop of 21 per cent to N1.4 billion during the period under review.


He stated that transaction fees influenced by capital market trends within the period, declined to N3.3 billion during the period under review.


According to him, the exchange witnessed a 47.6 per cent increase in foreign outflows of N642.65 billion, compared with N435.31 billion in the corresponding period in 2017.
He attributed the development to flight to quality by foreign investors to higher yielding assets with lower risks in developed countries.


Onyema noted that the situation was intensified by the political risks associated with the Nigerian presidential elections.


He stated that the Federal Government during the period borrowed N1.2 trillion to finance fiscal and infrastructure deficits.


The NSE chief added that State Governments and corporates raised a total of N157 billion from the NSE during the period under review.

he explained that the NSE future revenues and net incomes would continue to be influenced by key domestic and international market forces such as pricing, product features and regulatory changes.


Onyema said the company would strive to finalise the exchange demutualusation process, boost fixed income market segment and establish its exchange traded derivatives market.


Also speaking, Mr Abimbola Ogunbanjo, President of the National Council of the exchange, said the exchange would intensify the promotion of the growth and development of the Islamic finance industry, to boost financial inclusion.


Ogunbanjo said that the exchange would continue to intensify efforts with its stakeholders to on-board new financial instruments and maximise organisational value.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.