A Year of Growth and Transformation: Analyzing the 2024 Performance of the Nigerian Exchange Ltd.
The year 2024 marked a period of significant growth and transformation for the Nigerian Exchange Ltd (NGX), as evidenced by robust dividend declarations, substantial new issuances, strategic mergers and acquisitions, and a burgeoning collective investment schemes sector. These positive developments reflect increased investor confidence, a vibrant capital market, and the effectiveness of regulatory oversight by the Securities and Exchange Commission (SEC). The NGX’s performance underscores the growing maturity and resilience of the Nigerian capital market, positioning it as a key driver of economic growth and wealth creation.
Dividend declarations, a key indicator of corporate profitability and shareholder returns, reached an impressive N1.1 trillion in 2024. With N1 trillion already disbursed to shareholders, this signifies not only the financial health of listed companies but also their commitment to rewarding investors. This substantial payout reinforces investor confidence and encourages further investment in the market, contributing to a virtuous cycle of growth. The high dividend payout ratio further suggests a positive outlook for future earnings and sustained shareholder returns.
The capital market witnessed a surge in new issuances, totaling N3.68 trillion in 2024. This substantial influx of capital, comprising N59.82 billion in fixed income and a remarkable N3.62 trillion in equities, demonstrates the strong appetite of investors for Nigerian securities. The dominance of equity issuances highlights the confidence in the growth potential of listed companies and the overall market. This trend continued into 2025, with approved new issues reaching N446.38 billion in the first four months, further substantiating the sustained momentum in the capital market.
Mergers and acquisitions played a crucial role in reshaping the corporate landscape in 2024. The SEC approved 11 transactions with a combined value of N320.36 billion, indicating a dynamic environment of strategic consolidation and expansion. Notable transactions included the acquisition of a majority stake in Guinness Nigeria Plc and the restructuring of Flour Mills of Nigeria Plc, underscoring the strategic importance of these deals. These activities not only optimize business operations but also create value for shareholders and enhance market competitiveness.
The collective investment schemes sector experienced remarkable growth, with total assets under management reaching N8.53 trillion. Mutual funds, with a net asset value of N3.84 trillion and over 800,000 unitholders, demonstrate the increasing popularity of these investment vehicles among retail investors. The growth of privately managed portfolios and products, with assets under management totaling N4.69 trillion, signifies the increasing sophistication of institutional investors and their confidence in the Nigerian market. This growth underscores the maturation of the market and the rising importance of professional fund management in driving capital formation and wealth creation.
The performance of the Nigerian Exchange Ltd. in 2024 signifies a positive trajectory for the Nigerian capital market. The robust dividend declarations, the surge in new issuances, the strategic mergers and acquisitions, and the expansion of the collective investment schemes sector all point to a vibrant and growing market. This positive momentum is expected to continue, driven by investor confidence, regulatory effectiveness, and the increasing recognition of the Nigerian capital market as a key engine for economic growth and wealth creation. The SEC’s proactive approach to regulation and its commitment to fostering transparency and investor protection have created a conducive environment for sustainable market development.
The continued growth in new issuances, including both debt and equity, further highlights the confidence of businesses and investors in the Nigerian market. This increased capital inflow provides companies with the resources needed for expansion, innovation, and job creation, contributing to the overall economic growth of the country. The diverse range of sectors represented in these issuances further showcases the breadth and depth of the Nigerian economy. The SEC’s efforts to streamline the approval process for new issuances have further facilitated market activity and encouraged greater participation.
The strategic mergers and acquisitions witnessed in 2024 underscore the dynamic nature of the Nigerian corporate landscape. These transactions, often driven by the need for consolidation, efficiency gains, and market expansion, are essential for the long-term health and competitiveness of the market. The SEC’s role in ensuring fair and transparent transactions protects the interests of all stakeholders and maintains market integrity. The successful completion of these transactions further strengthens investor confidence and encourages further investment.
The robust growth of the collective investment schemes sector demonstrates the increasing sophistication of Nigerian investors and their growing appetite for diversified investment options. Mutual funds provide retail investors with access to professionally managed portfolios, while privately managed portfolios cater to the needs of institutional investors. This growth reflects the increasing recognition of the importance of professional fund management in optimizing returns and mitigating risks.
The Nigerian capital market’s performance in 2024 paints a picture of resilience, growth, and transformation. The positive trends observed across various segments of the market, including dividend declarations, new issuances, mergers and acquisitions, and collective investment schemes, reflect the underlying strength of the Nigerian economy and the confidence of investors in its future prospects. The SEC’s continued efforts to enhance regulatory oversight, promote transparency, and protect investor interests will be crucial in sustaining this positive momentum and ensuring the long-term health and stability of the Nigerian capital market. The growth of the capital market plays a vital role in driving economic development, creating jobs, and enhancing wealth creation for all stakeholders.
