NGX realigns operations to drive private capital

The Nigerian Exchange Group has announced realigning its operations to attract more private capital and also tackle the instances of delisting from the local bourse.

This was disclosed by the Group Managing Director/Chief Executive Officer of NGX Group Plc, Temi Popoola, on the floor of the 64th Annual General Meeting on Tuesday.

Also, at the AGM, the shareholders approved a final dividend of N4.4bn, translating to N2.00 per share, the highest dividend payout in the Group’s history.

Popoola said, “There is a global increase in the demand for private capital, and Nigeria is not exempt. All our unicorns, about six of them, are powered by private capital. These companies are raising significant funds without tapping into the public markets, and that’s the direction the world is going.”

The GMD added that the group would rather position itself as a gateway for all forms of capital than be labelled as merely a platform for public equity.

On the concerns of delisting raised by stakeholders, Popoola said, “Some are seeing delisting, but they are also landing large listings or tapping into private deals that keep market value intact.”

Popoola added that the NGX is working closely with the Securities and Exchange Commission to explore institutional reforms that will enhance the market’s attractiveness.

He went on to reveal that later this month, Nigeria will host a major gathering of global private capital providers, underscoring the country’s growing relevance in this space, saying, “These investors are coming not just for private companies but also for listed firms offering funding that does not require a listing.

That is a reality we must embrace and leverage.”

In his comments, the Chairman of Nigerian Exchange Group Plc, Dr Umaru Kwairanga, affirmed the group’s steadfastness in its mission to drive the capital market in 2024 despite broader macroeconomic challenges.

At the end of the 2024 financial period, the NGX Group profit before tax rose to N13.6bn, marking 157.3 per cent year-on-year growth. This strong performance was driven by robust revenue expansion, strategic cost optimisation, and increased market participation, reflecting the Group’s resilience and financial strength.

The Group’s gross earnings surged by 103.2 per cent to N24bn in FY 2024, up from N11.8bn in the previous year, propelled by significant growth across key revenue streams.

In the year under review, the group launched the NGX Invest, which has facilitated N1.85 N1.85tn in capital raises for the banking sector, enhancing liquidity and investor participation and expanding into new markets, marked by a strategic investment in the Ethiopian Securities Exchange.