Nigerian Exchange Group Plc Achieves Record Dividend Payout and Financial Performance in 2024
The Nigerian Exchange Group Plc (NGX Group) has announced a remarkable financial performance for the year ended December 31, 2024, culminating in a record dividend payout of N4.4 billion. This translates to N2 per share and represents the highest dividend in the company’s history, marking a significant milestone in its post-demutualization growth trajectory. The proposed dividend is subject to shareholder approval and applicable withholding tax. This achievement underscores the group’s commitment to delivering substantial returns to its investors while simultaneously reinforcing its position as a pivotal player in the Nigerian capital market.
The group’s audited financial statement for 2024 reveals a substantial increase in profit before tax, reaching N13.6 billion. This represents a remarkable 157.3% surge compared to the N5.3 billion recorded in 2023. This impressive growth in profitability can be attributed to the group’s strategic initiatives and robust performance across its various business segments. The significant improvement in financial performance demonstrates the effectiveness of the group’s strategies and its ability to capitalize on market opportunities.
Contributing to the impressive financial results, gross earnings experienced a significant upswing of 103.2% reaching N24 billion. This remarkable growth was driven by strong performance across multiple revenue streams, including transaction fees, listing fees, and market data income. The diversification of revenue streams has proven to be a key strength for NGX Group, mitigating risks and ensuring sustainable growth. The increased market activity and investor participation further fueled this revenue growth, reflecting the positive sentiment towards the Nigerian capital market.
Umaru Kwairanga, the Chairman of NGX Group, expressed his satisfaction with the company’s performance, highlighting the dividend payout as a reflection of their dedication to creating value for shareholders. He emphasized the group’s commitment to maintaining a strong capital position while pursuing strategic investments and driving innovation within the capital market. Kwairanga underscored NGX Group’s focus on long-term value creation for all stakeholders through market expansion and continuous improvement of market infrastructure. He emphasized the importance of investor confidence in the group’s vision and strategic direction.
The chairman’s statement reinforces the group’s commitment to sustainable growth and its focus on creating a vibrant and robust capital market ecosystem. The record dividend payout not only rewards shareholders but also signals the group’s positive outlook for the future. This confidence stems from the successful implementation of strategic initiatives, the growth of the Nigerian economy, and the increasing participation of investors in the capital market.
The performance of NGX Group aligns with the overall positive trend observed in the Nigerian equity market. According to reports, the market recorded transactions totaling N8.05 trillion between January 2023 and October 2024. This substantial trading activity reflects the growing investor confidence and the increasing depth and liquidity of the Nigerian stock market. The NGX Group’s strong performance within this context highlights its ability to leverage market opportunities and contribute significantly to the development of the Nigerian capital market. The group’s commitment to innovation, market expansion, and strategic investments positions it for continued growth and success in the future.
