Investors Gain N1.9tn on NASD in One Week Amid Oil and Gas Surge

Investors on the NASD Over-the-Counter (OTC) Securities Exchange recorded a massive gain of N1.9 trillion in the final week of May 2025, marking one of the most bullish weeks for the alternative exchange platform in recent months. The impressive gain was driven largely by strong performance in the oil and gas sector, supported by growing investor confidence and improving macroeconomic indicators.

The NASD All-Share Index (NSI), which tracks the overall market performance of the OTC exchange, rose by 1.86%, closing the week at 3,248.00 points from 3,188.76 points recorded the previous week. This sharp upward movement translated to an increase in market capitalization, which jumped from N10.21 trillion to N12.11 trillion — reflecting a total investor gain of N1.90 trillion in just five trading days.

Sectoral performance revealed that oil and gas was the major catalyst behind the surge. The sector accounted for a staggering 81.37% of total trading activity during the week. Within the segment, over 506 million shares worth N4.18 billion were exchanged in just 21 deals. This strong interest was driven by renewed investor appetite for energy stocks amid rising global oil prices and improved local production outlook.

In comparison, the consumer goods sector also saw notable activity, though at a smaller scale. The sector recorded 15.77 million shares traded, valued at N638.94 million across 48 deals. Analysts believe that the gains in the consumer goods space were supported by signs of easing inflation and increased household consumption following the gradual stabilization of the naira.

Overall, trading activity on the NASD OTC market was robust. A total of 551.01 million shares were exchanged in 133 deals, with a combined market value of N5.14 billion. The most traded securities during the week included Air Liquide Plc and FrieslandCampina Wamco Nigeria Plc, both of which witnessed increased demand due to their consistent dividend performance and perceived defensive positioning in uncertain market conditions.

The surge in market capitalization and investor wealth came at a time when Nigeria’s broader economy is showing signs of cautious recovery. The Central Bank of Nigeria (CBN) recently held its Monetary Policy Rate (MPR) steady at 27.5%, a decision aimed at curbing inflation while supporting economic stability. This move has contributed to improved investor sentiment, particularly in sectors that are sensitive to interest rates and macroeconomic shifts.

Additionally, the government’s ongoing reforms in the energy sector — including efforts to tackle oil theft, streamline licensing processes, and attract private capital — have reignited interest in upstream and midstream oil and gas companies. As a result, investors are positioning themselves for long-term gains in anticipation of improved earnings and sectoral stability.

The recent performance also highlights the growing relevance of the NASD OTC market as a viable alternative to the Nigerian Exchange (NGX). Initially established to facilitate the trading of shares from unlisted public companies, the NASD has evolved into a robust platform for investors seeking exposure to a wider range of assets, including firms not listed on the mainstream stock exchange. This flexibility has made it attractive to institutional investors and high-net-worth individuals looking for undervalued or emerging opportunities.

Market analysts have applauded the exchange’s performance, noting that the liquidity witnessed in the past week indicates a rising level of investor confidence. “The growth we’re seeing on the NASD is not accidental. It’s a reflection of improving economic sentiment and the strategic positioning of some of the companies on the platform,” said a Lagos-based financial analyst. He added that the current trend, if sustained, could encourage more companies to list on the NASD in a bid to raise capital and boost visibility.

Despite the gains, market watchers caution that risks remain. Global oil markets remain volatile, and local factors such as exchange rate instability, inflationary pressures, and political uncertainty could affect investor behavior. Nonetheless, the outlook remains broadly positive, especially if macroeconomic reforms continue and external conditions remain favorable.

Looking ahead, stakeholders expect that more sectors, particularly agriculture, manufacturing, and technology, could begin to attract increased trading volumes on the NASD as investors diversify their portfolios. The exchange itself has hinted at plans to enhance transparency, improve reporting standards, and encourage more corporate disclosures, all of which are intended to increase investor trust and attract more participants to the market.

 

The N1.9 trillion gain recorded last week marks a significant milestone for the NASD OTC Exchange, and potentially a turning point in how investors view Nigeria’s broader financial markets. As economic reforms deepen and market structures improve, the OTC market could emerge as a critical driver of capital formation and wealth creation in the years ahead.