NGX earns N6.959 billion revenue from transaction fees, treasury investments

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The Nigerian Exchange Group Plc saw a significant increase in revenue for the 2023 financial year, generating N6.959 billion from transaction fees and treasury investment income, as revealed in its annual financial report.

This marks a notable growth of 34.19% from the previous year’s N5.187 billion. Transaction fees accounted for a substantial portion of revenue, amounting to N4.818 billion, representing a 52.6% increase from 2022 and contributing 58% to the total revenue.

Treasury investment income, comprising income from bonds, treasury bills, and fixed deposits, contributed N2.141 billion to the group’s revenue, showing a 5.47% increase compared to the previous year. This segment accounted for 25.79% of the total revenue. The decision of the Central Bank of Nigeria (CBN) to raise the interest rate to 24.75% is expected to further boost income from treasury investments for NGX and other investment institutions.

The CBN’s Monetary Policy Committee (MPC) disclosed the interest rate hike at the end of its 294th meeting in Abuja, aiming to address inflation and exchange rate fluctuations. While the 200-basis points increase is significant, it falls short of the 400-basis points rise implemented in February. Investment experts anticipate shifts in funds between money market instruments and the stock market based on interest rate movements, with higher rates potentially driving investors towards money market instruments for increased yields.

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