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E-Financial

NGX Moves to Reduce Trading Costs Through Technology

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Temi Popoola, the Chief Executive Officer, Nigerian Exchange Limited (NGX), has revealed that the exchange is exploring ways to leverage technology to focus on reducing brokerage costs.

Popoola disclosed this while fielding questions from stakeholders at the MTN Capital Markets Day which held in Abuja recently.

He noted that NGX recognizes the high cost of trading in and out of Nigeria and added that it is looking at incorporating digital technology to enhance overall trading experience and make it more cost-effective for investors.

Popoola, while specifically stating that the exchange is focused on reducing brokerage costs, said this will encourage more participation in the stock market and attract a broader range of investors and added that the NGX wants to emulate other digital market platforms that offer zero-cost trading on their platforms.

He explained, “Looking at many other markets, there are many digital platforms that allow them to trade for free at zero cost and today there are people (brokerage) who charge around 130 basis points to do business and so we think that with digital and tech transformation, trading costs on NGX can be addressed.

Of course there are costs that we charge as a business but a lot of our stakeholders are looking to see whether lowering trading costs can be addressed whether in a short or long term and relax the costs to build the market.

Another thing that brings these costs are people who bring deals and issuances to the market and a lot of feedback has been that it is very expensive and so we think we will address these things”.

Weighing in on the spate of delistings which is currently ongoing in the market, the NGX boss, quoting PitchBook, said that Initial Public Offerings (IPOs) have witnessed a slowdown of more than 60 per cent in the last two years globally, adding that there has been a noticeable scarcity of smaller cap stocks on public exchanges due to various factors such as voluntary and involuntary delistings, mergers and acquisitions, and liquidations.

Emphasizing NGX’s strategy around delistings, Popoola said, “What most exchanges aim to do is replace those delistings faster than they occur, and that has formed the crux of our strategy at NGX.

“We have had notable listings within the last two years including BUA Foods, Geregu – which is our first power sector listing, MeCure Industries, VFD Group, and interestingly our first listed Investment Trust, Nigeria Infrastructure Debt Fund.

“NGX has experienced a remarkable surge in market capitalization, with new listings contributing over 10 per cent in the past two years and we think that there is a need for government advocacy and policymaking in enhancing listings in our markets”.

Whilst acknowledging the global availability of capital for sustainable initiatives, he further revealed that the exchange places a strong emphasis on sustainability and said it is planning to launch a sustainability framework and work with listed corporates to address current carbon footprints to promote responsible corporate behavior.


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E-Financial

Fidelity Bank’s Gross Earnings Hit N315Bn

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Nneka Onyeali-Ikpe, managing director and chief executive officer, Fidelity Bank,
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Fidelity Bank Plc has recorded gross earnings of N315.4bn for the first quarter ended 31 March 2025, representing a 64.2 per cent increase from the N192.1bn reported in the corresponding period in 2024.

Fidelity Bank’s Gross Earnings Hit N315Bn

Nneka Onyeali-Ikpe, managing director and chief executive officer, Fidelity Bank,

According to the bank’s unaudited financial statements filed with the Nigerian Exchange Limited, the impressive performance was driven by significant growth in interest income, foreign exchange revaluation gains, and higher fee and commission income.

Interest and similar income calculated using the effective interest rate method rose by 58.1 per cent to N256.1bn in the period under review, up from N161.9bn in the same quarter of 2024.

Additionally, the bank earned N25.4bn from other interest and similar income, compared to N8.2bn in the corresponding quarter of the previous year.

Despite a 28.5 per cent increase in interest expense to N90.7bn from N70.5bn, net interest income climbed to N190.8bn, reflecting a 91.5 per cent growth from N99.6bn in the same quarter last year.

Fidelity Bank recorded a credit loss expense of N6.3bn, a decline of 49.2 per cent compared to the N12.4bn reported in Q1 2024. Consequently, net interest income after credit loss expense rose to N184.5bn from N87.3bn.

The bank also saw growth in its non-interest income. Fee and commission income increased to N23.8bn, up from N18.3bn in Q1 2024.

Foreign currency revaluation gains contributed N9.8bn to earnings, representing a 200.8 per cent increase from N3.3bn in the same period last year.

On the cost side, operating expenses remained elevated. Personnel expenses rose to N19.7bn from N14bn, while depreciation, amortisation, and impairment increased significantly to N8.7bn from N2.2bn. Other operating expenses also grew to N87.5bn from N52bn.

Despite the cost pressures, the bank posted a profit before income tax of N105.8bn, more than doubling the N39.5bn recorded in the same period last year. After a tax charge of N14.7bn, profit for the period stood at N91.1bn, marking a 190 per cent increase compared to N31.4bn reported in Q1 2024.

Earnings per share rose to 181 kobo from 98 kobo in the corresponding quarter.

The bank’s total comprehensive income for the period rose to N101.6bn, up from N35.8bn in Q1 2024, bolstered by exchange differences on translation of foreign operations and revaluation gains on debt instruments.

 

 

 

 

 

 

 


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E-Financial

SEC Uncovers Tofro, another Suspected Ponzi Scheme

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Securities and Exchange Commission (SEC) has uncovered another suspected illegal investment platform identified as TOFRO.COM (Tofro).

SEC Uncovers Tofro, another Suspected Ponzi Scheme

The commission raised the alarm in a notice issued on Thursday and made it available to the newsmen.

The commission warned Nigerians against falling for their tactics to obtain money from them through the promise of unusually high returns.

SEC said that the suspected investment platform holds itself out as a cryptocurrency trading platform, adding that such an investment scheme is not registered by the commission.

It said that based on its investigations, Tofro’s operations exhibit the typical indicators of a fraudulent Ponzi scheme.

 

According to the SEC, it promises unusually high returns, heavy reliance on a referral system to sustain payouts, and failure to honour withdrawal requests from subscribers.

SEC, however, strongly advised Nigerians to be wary about investing with Tofro, noting that any person who places such an investment with the entity does so at their own risk.

The notice reads, “The attention of the Securities and Exchange Commission has been drawn to the activities of an online platform known as TOFRO.COM (Tofro), which holds itself out as a cryptocurrency trading platform.

“The Commission hereby informs the public that the Tofro is NOT REGISTERED by the Commission either to solicit investments from the public or operate in any other capacity within the Nigerian capital market.

“Investigations have revealed that Tofro’s operations exhibit the typical indicators of a fraudulent Ponzi scheme, including the promise of unusually high returns, heavy reliance on a referral system to sustain pay-outs and failure to honour withdrawal requests from subscribers.

“Accordingly, the public is strongly advised to be wary about investing with Tofro, as any person who places such investment with the entity does so at his/her own risk.

“The Commission similarly reminds potential investors of the need to VERIFY the registration status of investment platforms via the Commission’s dedicated portal: www.sec.gov.ng/cmos before transacting with them.”

 


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E-Financial

DBN to Invest $2.5m in Proposed Youth Entrepreneurship Investment Bank

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The Development Bank of Nigeria (DBN) has received shareholders’ approval to invest $2.5 million or 25% equity stake in the proposed Youth Entrepreneurship Investment Bank (YIB) — a new investment vehicle designed to provide equity funding to youth-led businesses in Nigeria.

The approval came during the bank’s 8th Annual General Meeting (AGM) which was held in Abuja.

The move is a strategic step aligned with the bank’s broader mission to support Micro Small and Medium Enterprises (MSMEs), job creation and entrepreneurship among Nigeria’s youth.

According to Tony Okpanachi, DBN Managing Director, Youth Entrepreneurship Investment (YIB) is not a conventional bank. It is an investment vehicle that will deploy equity into promising youth-owned enterprises.

“This is about backing ideas and unlocking growth through long-term capital — not debt,” Okpanachi told journalists after the AGM.

The initiative is a partnership between DBN, the Nigeria Sovereign Investment Authority (NSIA), and the African Development Bank (AfDB), with additional backing expected from development finance institutions.

The African Development Bank (AfDB) is currently in discussion to provide debt financing, which would bolster the capital available to the vehicle without diluting equity.

“This $2.5 million is DBN’s initial stake,” Okpanachi said. “We are co-investing alongside NSIA, and this sets the stage for broader institutional participation — both local and global.”

YIB aims to fill a critical funding gap in Nigeria’s startup ecosystem. While the country has a vibrant pool of young entrepreneurs, access to early-stage funding remains limited. Many businesses rely on short-term loans or informal capital, which often constrains scalability and long-term planning.

Okpanachi emphasised that YIB’s structure is deliberately designed to avoid the trappings of a traditional bank.

“This is not a commercial bank. It won’t provide loans or open retail accounts. It’s structured purely as an equity-focused investment vehicle, targeting scalable ventures with strong fundamentals and youth ownership”, he noted.

This will be DBN’s second strategic investment following the establishment of its wholly owned impact credit guarantee subsidiary, which offers partial credit guarantees to MSMEs.

Final structuring of YIB is underway. Following the shareholder greenlight, the promoters are now coordinating with the relevant stakeholders to complete incorporation, legal frameworks, and capital mobilisation.

“We expect all groundwork to be finalised by the end of this year. With operations likely to begin by early 2026,” Okpanachi disclosed.

The move comes amid growing concerns over Nigeria’s rising youth unemployment rate.

By investing directly into youth-led businesses, DBN and its partners aim to accelerate job creation, promote innovation, and catalyse broader economic development.

“There’s already strong interest from global players,” the MD noted, though he declined to name institutions due to ongoing negotiations.

“What we are doing is laying the foundation. YIB will serve as a credible, well-structured platform to crowd in institutional capital and scale youth-driven entrepreneurship.”

He added that YIB is not a one-off initiative but part of a long-term strategy to create sustainable investment channels focused on Nigeria’s demographic dividend.

“This is more than a financial transaction,” Okpanachi said. “It is a statement of intent. We believe in the entrepreneurial potential of Nigerian youth — and we are backing that belief with real capital.”

 


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