NASD OTC diversifies operations

Nigeria’s only licensed Over-The-Counter Exchange, NASD OTC has commenced the diversification of its operations in order to enhance its competitive edge, attract more customers, boost revenue and deliver shareholder value.

According to a statement, the Exchange is already holding talks with the National Pension Commission to grant approval to the Pension Fund Administrators to take advantage of the numerous opportunities in the market.

Speaking on the diversification move, the Chief Executive Officer of NASD, Eguarekhide Longe,  explained that the Exchange had planned to expand its revenue generation from a minimum of five platforms before the end of 2023, in order to redefine the value proposition of its business.

According to Longe, the proposed five income centre platforms are — The OTC Market, NASD Enterprise Portal, Donor Crowdfunding, Invoice Factoring and the Digital Securities Platform.

Longe said, “NASD has clearly articulated its future development to diversify its revenue base so that it evolves a more sustainable and resilient business.  In the course of 2023, there is a plan to ensure that the Company begins to generate revenues, no matter how small from at least 5 different platforms. We have also fully engaged the regulator of PFAs, Pencom to grant the PFAs approval to invest through our market.

“Our market remains a very robust platform that will increasingly integrate the Nigerian economy with the Nigerian Capital Market. With a keen focus on sectors like Housing and Mortgage Finance, Agriculture Aggregation, Entertainment and Creative Industry, Transportation and Logistics, Off-Grid Clean Energy and conversion of public assets to viable regenerative private sector entities. Through Public-Private Partnership, NASD shall originate new admissions of companies on its market platforms.”

Commenting on the proposed delisting of VFD Group from NASD, he noted that it was part of market dynamics saying: ” VFD is a major stakeholder in NASD. It directly owns approximately 6.55 percent of the shares of NASD. The Group is streamlining its subsidiaries for consolidation and conversion to public company status for public listing. However, the Group has announced the plan to list some of its subsidiaries on the NASD in the course of 2023. “.