The Nigerian Exchange Group Plc (NGXGROUP) experienced a significant revenue surge in the 2024 financial year, reaching N24 billion. This impressive growth was primarily fueled by two key factors: the recapitalization of Nigerian banks, which injected substantial capital into the market, and a series of major listings on the exchange, attracting significant investor interest and trading activity. These developments underscore the NGXGROUP’s increasing importance as a hub for capital formation and investment in the Nigerian economy. The robust performance also highlights the effectiveness of regulatory initiatives and the exchange’s efforts to attract prominent companies to list, thereby deepening the market and boosting its overall value.
A closer examination of NGXGROUP’s revenue composition reveals a diversified and resilient structure. The majority of its income streams from investment income, transaction fees, and listing fees, which collectively accounted for nearly 70% of total revenue in 2024. This diversification mitigates risks associated with over-reliance on any single revenue source. The period between 2023 and 2024 witnessed a surge in market turnover, averaging a year-on-year growth of 56.3%. This surge was driven by regulatory mandates requiring increased minimum share capital for commercial banks, alongside high-profile listings like Aradel Holdings Plc and Transcorp Power Plc. Consequently, both transaction and listing fees experienced substantial growth, with a 64% increase in transaction income and a remarkable 397.1% jump in listing fees in FY’24, demonstrating the direct impact of market activity on the Group’s financial performance.
Historically, NGXGROUP’s profitability has also benefited significantly from its equity investments in Central Securities Clearing System (CSCS) and NG Clearing Limited. However, the remarkable growth of the Group’s core business revenue to N16.9 billion in FY’24, compared to N8.3 billion in FY’23, has diminished the relative contribution of these associate profits to the overall bottom line. This shift signifies the increasing strength and self-sufficiency of NGXGROUP’s core operations, reducing its reliance on external investment income. The growth in core revenue reflects the success of the exchange’s strategic initiatives to enhance market activity and attract more listings.
NGXGROUP has also demonstrated a commitment to investing in future growth and market development. In 2024, the Group allocated N1.4 billion towards technology and market development initiatives designed to strengthen capital market operations and expand digital offerings. These investments played a crucial role in facilitating major capital raises, including a notable N1.8 trillion raised by the Nigerian banking sector. Furthermore, the Group implemented workforce optimization and operational efficiency programs, leading to tighter cost management and improved productivity, which ultimately contributed to a substantial 157.3% surge in profit before tax. This reflects a proactive approach to cost control and efficiency, maximizing returns on investment.
External factors also played a role in NGXGROUP’s financial performance. Currency reforms and the devaluation of the naira in 2023 and 2024 resulted in net foreign exchange gains of N4 billion, further boosting the Group’s earnings. However, this effect was less pronounced in the first half of 2025 due to relative currency stability. While these external factors provided a temporary boost, the Group’s underlying operational improvements remain the primary driver of its strong performance. This highlights the importance of both internal strategic initiatives and external market conditions in shaping financial outcomes.
Looking ahead, NGXGROUP projects total income of N20.8 billion in 2025, slightly lower than the 2024 figures. This projection reflects an anticipated moderation in FX gains and a conservative outlook on transaction and listing fees. Despite this slight projected dip, the Group aims to achieve an average of five new listings per year, presenting a potential upside to the projected revenue. The Group’s medium-to-long-term growth strategy centers on expanding the number of listed companies and diversifying product offerings. This includes broadening the range of available investment instruments, such as equities, fixed income, ETFs, derivatives, and innovative products like Nigerian Depositary Receipts (NDRs), Single Stock Futures, and tokenized securities. These initiatives aim to attract a wider investor base and further deepen market participation. Furthermore, NGXGROUP is actively enhancing its digital platforms to boost retail investor engagement, with an ambitious goal of reaching 10 million new retail investors, demonstrating a commitment to broadening access to the capital market. Strategic investments in technology and cross-border market integration through platforms like the Pan-African Payment and Settlement System (PAPSS) and partnerships with other African exchanges are expected to expand transaction opportunities and attract increased liquidity inflows from beyond Nigeria’s borders. Overall, CardinalStone’s research paints a positive picture of NGXGROUP’s future prospects. The Group is well-positioned for sustained profitability, with a projected five-year revenue Compound Annual Growth Rate (CAGR) of 12.9%, average EBITDA margins of 46.6%, and a robust return on equity anticipated to remain strong at 17.8%. These projections suggest a healthy and sustainable growth trajectory for the exchange group, driven by strategic investments, market development initiatives, and a diversified revenue base.
