Emmanuel OchayiThe Nigerian Exchange Limited (NGX) closed 2024 with an impressive annual growth rate of 37.65%, marking a significant turnaround from its performance in the last decade.
This growth reflects a combination of strategic macroeconomic reforms and increased investor confidence.
Join our WhatsApp ChannelNGX All-Share Index’s Stellar Performance
The NGX All-Share Index (ASI) has recorded remarkable progress in the 2020s, with a cumulative return of 283.45% since 2020. Starting at 26,842.07 points in December 2019, the index reached 102,926.40 points by the end of 2024. Years like 2020, 2023, and 2024 were particularly notable, driven by investors seeking higher returns from equities as fixed-income yields declined.
Impact of Macroeconomic Reforms on NGX
Currency devaluation and macroeconomic reforms by the Central Bank of Nigeria (CBN) and the Federal Government have been pivotal in boosting the NGX.
The depreciation of the naira has attracted foreign capital, which grew from 4% in mid-2023 to 16% by November 2024. These reforms have also spurred investor interest in equities as a hedge against inflation.
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Key Listings Drive Market Expansion
High-profile listings have invigorated trading on the NGX. Companies such as Geregu Power Plc, Transcorp Power Plc, and BUA Foods have contributed to the market’s rapid growth.
These listings propelled market capitalisation from ₦12.79 trillion in 2019 to ₦62.76 trillion in 2024, an increase of ₦49.97 trillion.
NGX Leadership Reflects on Achievements
At the Closing Gong Ceremony for 2024, NGX’s CEO Jude Chiemeka, represented by Abimbola Babalola, applauded stakeholders for their contributions to the year’s success. “The year 2024 saw significant activity in the secondary market, thanks to our trading license holders and favourable macroeconomic policies,” Babalola said.
CIS President Oluropo Dada and ASHON Chairman Sam Onukwue also highlighted the critical role of stockbrokers in the market’s growth, emphasising their commitment to driving further development.
Challenges Facing NGX’s Continued Growth
Despite its achievements, the NGX faces challenges such as high transaction costs, low liquidity, and wide bid-ask spreads. Proshare’s 2025 market outlook suggests leveraging national assets like NNPC to enhance liquidity and attract investments.
Future Outlook for NGX
Temi Popoola, CEO of the Nigerian Exchange Group, expressed optimism about the future. “Nigeria’s capital market has shown resilience and innovation, offering valuable opportunities for investors. Strategic reforms and key listings have been transformative,” Popoola said.
He added that liberalised exchange rates and improvements in the oil and gas sector have boosted listed companies’ performance. Looking ahead, he remains confident that ongoing reforms will sustain growth and bolster investor confidence in 2025 and beyond.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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