The Nigerian Exchange Limited (NGX) has rewritten its narrative, overcoming the challenges of the 2015–2019 era to achieve historic growth in the 2020s. Once beleaguered by the 2015 oil price crash and the subsequent 2016 recession, NGX has risen to become a powerhouse in Africa’s capital markets.
Since 2020, the NGX All-Share Index (ASI) has delivered an extraordinary 283.45% return, surging from 26,842.07 points at the end of 2019 to a record-breaking 102,926.40 points by December 2024. This growth has been driven by strategic reforms, macroeconomic adjustments, and investor interest in equities as a hedge against inflation. Among the standout years, 2024 closed with a robust 37.65% annual growth, showcasing investor confidence and the resilience of the market.
Key factors propelling this remarkable performance include the depreciation of the naira, spurred by reforms implemented by the Central Bank of Nigeria (CBN) and the Federal Government. Foreign capital inflows have surged from a mere 4% in mid-2023 to an impressive average of 16% by November 2024, underscoring international confidence in the Nigerian market.
High-profile listings have also played a pivotal role. Companies like Geregu Power Plc, Transcorp Power Plc, Aradel Holdings, and BUA Foods have expanded the range of blue-chip stocks available, driving market capitalization from N12.79 trillion in 2019 to an astonishing N62.76 trillion by December 2024—a net increase of N49.97 trillion.
At the 2024 Closing Gong Ceremony, NGX CEO Mr. Jude Chiemeka, represented by Head of Trading and Products, Mr. Abimbola Babalola, commended key stakeholders, including the Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON). He emphasized the role of trading license holders and the positive influence of macroeconomic policies, including the seamless banking recapitalization process.
CIS President Mr. Oluropo Dada and ASHON Chairman Mr. Sam Onukwue, represented by Mrs. Ify Rita Ejezie, lauded stockbrokers for their contributions to the market’s growth and reaffirmed their dedication to advocating for policies that enhance market development.
Despite these achievements, challenges persist. Proshare’s 2025 market outlook highlights obstacles such as high transaction costs, information asymmetry, and low trading volumes that hinder liquidity. The report advocates leveraging the equity market further, including listing national assets like the NNPC, to unlock significant liquidity and attract investments.
Reflecting on the NGX’s resilience, Temi Popoola, GMD/CEO of Nigerian Exchange Group, noted:
“Nigeria’s capital market has consistently proven itself as a hub of resilience and innovation, offering valuable opportunities even in challenging economic cycles. The success of our blue-chip companies and strategic policy reforms have been critical in driving growth and positioning the market as a preferred destination for investors.”
He added that macroeconomic shifts, particularly in oil and gas reforms and exchange rate liberalization, have enhanced the performance of listed companies. “Looking ahead to 2025, we remain optimistic that continued reforms and macroeconomic stability will sustain growth, enhance investor confidence, and unlock long-term value for all stakeholders,” Popoola concluded.
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