What Is the NASD OTC Securities Exchange?

Most Nigerians who invest in the stock market know about the Nigerian Exchange Group (NGX). But very few know that Nigeria has a second official stock market — one that has been operating quietly since 2013, regulated by the same Securities and Exchange Commission, and trading shares of some of Nigeria's most recognisable public companies.

It is called the NASD OTC Securities Exchange. And if you have never heard of it, you are not alone.

This article explains everything you need to know about the NASD OTC market — what it is, how it works, who can invest, and how to track it in real time.

What Is the NASD OTC Securities Exchange?

The NASD OTC Securities Exchange is Nigeria's only licensed Over-The-Counter (OTC) exchange. It was established in 2013 and is registered and regulated by the Securities and Exchange Commission of Nigeria under the Investments and Securities Act.

The acronym NASD comes from the company's origin — the National Association of Securities Dealers. NASD PLC is currently owned by 59 capital market operators in Nigeria and has an authorised share capital of ₦500 million.

Unlike the NGX which trades shares of publicly listed companies, the NASD OTC market trades shares of public companies that are not listed on any other registered exchange in Nigeria. These are called unquoted public securities — companies that are registered with the SEC, have issued shares to the public, but have not formally listed on the main exchange.

How Is NASD Different From NGX?

The Nigerian Exchange Group (NGX) is Nigeria's main stock exchange. Companies on the NGX go through a formal listing process, meet specific requirements around financial disclosure, minimum share capital, and corporate governance, and their shares trade on the main board.

The NASD OTC market fills a completely different role. It provides a marketplace for:

• Shares of public companies that do not meet NGX listing requirements yet
• Shares of companies that have been delisted from the NGX
• Shares held by investors in companies that never formally listed anywhere
• Securities of companies that prefer the OTC structure over a full exchange listing

How Does the NASD OTC Market Work?

The NASD OTC platform is an electronic inter-dealer quotation system. It displays historical price data, current price quotes, and market depth information on all securities registered with the SEC but not quoted on any other exchange.

Prices on the NASD OTC market move under a 15% price band in either direction — meaning a stock can gain or lose a maximum of 15% in a single trading session. This is slightly wider than the NGX's 10% limit, reflecting the different risk profile of unquoted securities.

Trading on NASD happens through licensed Participating Institutions — stockbroking firms that are registered as dealers on the exchange. Investors cannot trade directly on NASD without going through one of these licensed brokers.

Who Can Invest on the NASD OTC Market?

Any Nigerian investor can buy and sell shares on the NASD OTC market. The process is similar to buying shares on the NGX:

1. Open an investor trading account with a stockbroking firm that is a Participating Institution on NASD
2. Fund your account
3. Place buy or sell orders through your broker
4. Transactions settle through the normal capital market clearing process

What Securities Trade on NASD?

The NASD OTC market trades equity shares of public limited companies registered with the SEC but not quoted on any other exchange. This includes companies across multiple sectors — banking, insurance, industrial, consumer goods, and more.

Some well-known Nigerian companies whose shares trade on NASD include formerly listed companies that have been delisted from the NGX, as well as established businesses that have never pursued a full exchange listing.

How to Track NASD OTC Prices

Until recently, tracking NASD OTC prices required manually checking the NASD website or calling your stockbroker. There was no clean, modern platform aggregating NASD data in real time.

NGX Pulse now tracks the complete NASD OTC market at ngxpulse.ng/nasd. You can monitor:

• Live NASD OTC stock prices updated every 30 minutes during market hours
• Top gainers and losers on the OTC market daily
• Most actively traded OTC securities
• 52-week high and low for every listed security
• Full market breadth — advancers vs decliners

For developers and institutions requiring programmatic access to NASD OTC data, the NGX Pulse API provides a dedicated NASD endpoint alongside the main NGX market data feed.

Is NASD OTC Safe to Invest In?

The NASD OTC Securities Exchange is a fully regulated marketplace overseen by the Securities and Exchange Commission of Nigeria. All securities trading on NASD must be registered with the SEC. The exchange maintains surveillance and compliance functions to ensure market integrity.

That said, OTC securities carry a different risk profile compared to main exchange listed stocks. Unquoted companies typically have less stringent disclosure requirements, lower liquidity, and wider price spreads.

The Bottom Line

The NASD OTC Securities Exchange is an important and underappreciated part of Nigeria's capital market infrastructure. It provides liquidity and price discovery for hundreds of public companies whose shares would otherwise trade informally with no transparency or regulation.

For Nigerian investors looking beyond the main NGX board, the NASD OTC market represents a genuinely different set of investment opportunities — with its own risk profile, its own dynamics, and its own potential rewards.

For pan-African capital markets coverage including NGX, NASD and 12 other African exchanges, visit Mansa Markets.