Stockbrokers Earned N100bn Commission As NGX Trading Hits Record Pace

The top 10 stockbroking firms on the Nigerian Exchange (NGX) generated a combined N99.71bn in commissions during the 2025 financial year, representing a sharp 135.39 per cent increase from the N42.36bn recorded in 2024.

The strong earnings growth was driven by heightened trading activity and increased transaction values across multiple sectors, underscoring sustained investor confidence despite persistent macroeconomic pressures, including elevated inflation and high interest rates.

Data from the NGX monthly broker performance report show that the leading firms executed transactions valued at N7.39trn during the year, accounting for 61.82 per cent of the total value of trades on the Exchange.

By volume, the top 10 brokers handled 49.41 percent of total shares traded, reinforcing their dominant role in providing market liquidity and shaping price discovery.

Market analysts noted that although Nigeria’s economic environment remained challenging, with tight monetary conditions and cost pressures weighing on businesses, investor appetite for equities remained resilient.

Increased portfolio repositioning, strategic sector rotation and active participation by institutional investors contributed significantly to higher market turnover, boosting brokerage revenues.

At the forefront of market activity was CardinalStone Securities Limited, which emerged as the most active broker by value in 2025, executing trades worth N2.19trn. This represented 18.30 per cent of the total value traded on the Exchange during the year.

Chapel Hill Denham Securities Limited followed with transactions valued at N1.02trn, accounting for 8.54 per cent of total trade value. Stanbic IBTC Stockbrokers Limited ranked third, facilitating trades worth N735.51bn, representing 6.16 per cent of the market.

Other major players included First Securities Limited with N686.05bn in executed trades and Cordros Securities with N663.7bn. Meristem Stockbrokers recorded N481.66bn in transactions, slightly ahead of EFG Hermes, which handled N472.1bn in trades.

ABSA Securities Limited executed transactions worth N426bn, while APT Securities & Funds recorded N398.73bn. United Capital Securities Limited completed the top 10 list with N316.14bn in traded value.

Collectively, these firms accounted for well over half of total trades executed on the Exchange in 2025, further consolidating their influence over liquidity flows, market depth and pricing trends.

The concentration of trading activity among a handful of dominant brokers has, however, reignited debate within the capital market community.

Analysts and industry stakeholders have expressed concern over intensifying competition pressures and the marginalisation of smaller brokerage firms, which may struggle to compete in an increasingly scale-driven market environment.

Despite these concerns, the overall performance of the Nigerian equities market in 2025 reflected remarkable resilience. Strong investor sentiment persisted throughout the year, supported by portfolio diversification strategies, sector-specific opportunities and improved corporate earnings in selected industries.

Analysts believe that if investor confidence remains intact and macroeconomic stability improves further, trading volumes could continue to expand, sustaining brokerage income growth.

However, they caution that sustained high interest rates and inflationary pressures could still influence asset allocation decisions and risk appetite in the months ahead.

Group Managing Director, Crane Securities Limited, Mr. Mike Eze in a chat with THE WHISTLER said the 135 per cent jump in commissions reflects structural deepening of Nigeria’s capital market rather than just cyclical trading activity.

According to him, the N7.39trn in executed trades and the strong revenue growth among leading brokers indicate that institutional participation is rising and liquidity conditions have improved significantly.

Eze added that sustained investor confidence, even in a high-interest-rate environment, signals growing maturity in market behaviour and portfolio diversification strategies.

A capital market analyst, Oluwatobi Lawal noted that while the revenue surge is impressive, the concentration of over 61 per cent of trade value among the top 10 brokers raises concerns about competitive imbalance.

The analyst warned that increasing dominance by a handful of firms could marginalise smaller brokerage houses, potentially limiting innovation and reducing market inclusiveness over time.

The expert suggested that regulatory attention may be required to ensure a level playing field and protect market diversity.

An equities analyst, John Odion said the strong performance of top brokers underscores the resilience of Nigeria’s equities market despite inflationary pressures and tight monetary policy.

However, the analyst cautioned that trading momentum in 2026 will be sensitive to interest rate direction and macroeconomic stability.

According to him, any shift toward monetary easing could further stimulate market turnover and brokerage earnings, while prolonged policy tightening may moderate trading volumes in the medium term.