Paragraph 1: The Nigerian Exchange Group’s Strategic Realignment
The Nigerian Exchange Group (NGX Group) is undergoing a significant transformation, repositioning itself to capitalize on the growing global demand for private capital. Recognizing the trend of companies, particularly "unicorns" (privately held startups valued at over $1 billion), securing substantial funding outside traditional public markets, the NGX Group aims to broaden its scope beyond public equity. The Group intends to become a comprehensive gateway for all forms of capital, facilitating access to both public and private funding opportunities. This strategic shift acknowledges the evolving financial landscape and aims to bolster the NGX’s relevance in a dynamic investment environment.
Paragraph 2: Addressing Delisting Concerns and Regulatory Reforms
The NGX Group is actively addressing concerns surrounding delistings from the local bourse. While acknowledging the occurrence of delistings, the Group emphasizes that these are often counterbalanced by significant new listings or private deals that maintain overall market value. Furthermore, the NGX is collaborating closely with the Securities and Exchange Commission (SEC) to implement institutional reforms aimed at enhancing the attractiveness of the Nigerian capital market. These reforms seek to create a more conducive environment for both public and private investments, fostering growth and stability within the market.
Paragraph 3: Embracing Private Capital and Global Partnerships
The NGX Group is actively embracing the influx of private capital into the Nigerian market. To solidify its position in this evolving landscape, Nigeria will host a prominent gathering of global private capital providers later this month. This event underscores Nigeria’s growing significance as a destination for private investment, attracting interest not only in private companies but also in listed firms seeking alternative funding avenues. The NGX Group recognizes the importance of leveraging this trend and facilitating connections between Nigerian businesses and international investors.
Paragraph 4: Financial Performance and Dividend Payout
The NGX Group demonstrated robust financial performance in the 2024 financial year, achieving a profit before tax of N13.6 billion, representing a substantial 157.3% year-on-year growth. This impressive performance was driven by significant revenue expansion, strategic cost optimization measures, and increased market participation. Reflecting this strong financial standing, the Group announced a final dividend of N4.4 billion, equivalent to N2.00 per share, marking the highest dividend payout in the Group’s history. This positive financial outcome underscores the Group’s resilience and effective management in a dynamic market environment.
Paragraph 5: Revenue Growth and Strategic Initiatives
The NGX Group’s gross earnings experienced a remarkable surge of 103.2%, reaching N24 billion in FY 2024, compared to N11.8 billion in the preceding year. This significant growth was fueled by strong performance across key revenue streams. Furthermore, the Group launched NGX Invest, a platform that has facilitated N1.85 trillion in capital raises for the banking sector, boosting liquidity and investor participation. This initiative highlights the Group’s commitment to innovation and developing new avenues for capital mobilization.
Paragraph 6: Expanding Market Reach and Strategic Investments
The NGX Group is actively pursuing expansion into new markets, demonstrated by a strategic investment in the Ethiopian Securities Exchange. This move signifies the Group’s ambition to broaden its reach and influence within the African capital market landscape. Combined with the launch of NGX Invest and the focus on attracting private capital, these initiatives showcase the NGX Group’s proactive approach to growth and its commitment to fostering a vibrant and interconnected African financial ecosystem.
