The Nigerian Exchange Group (NGX) is gearing up for the highly anticipated listing of Dangote Petrochemicals on the stock market—a move that industry watchers say could significantly deepen Nigeria’s capital markets and bolster investor confidence.
Chairman of NGX Group, Dr. Umaru Kwairanga, disclosed on Friday that the listing aligns closely with President Bola Tinubu’s economic agenda, which targets a $1 trillion GDP for Nigeria by 2030.
Kwairanga, in the statement revealed the strategic listings within the oil and gas sector, including the planned divestment of stakes in NNPC Ltd. and Dangote Petrochemicals, are critical to achieving this ambitious economic vision.
“Dangote Refinery has already applied for their petrochemical listing, and we are working to ensure their inclusion before the end of the second quarter,” he revealed.
Boosting Market Depth and Economic Formalization
Kwairanga highlighted the importance of expanding Nigeria’s capital market as a vehicle for long-term infrastructure development and business formalization. He, however, lamented the fact that Nigeria’s stock market capitalization is still less than 20% of GDP, far below that of South Africa, whose Johannesburg Stock Exchange surpasses its national GDP.
In response, NGX Group, in collaboration with the Securities and Exchange Commission (SEC), is implementing key structural reforms to address these gaps. These include:
- Full dematerialization of share certificates to enable seamless electronic transactions
- Resolving unpaid dividend issues to restore investor confidence
- Reducing the clearing and settlement cycle to T+2 to improve liquidity
“We are working closely with regulators and stakeholders to enhance market accessibility and attractiveness,” Kwairanga said.
Driving Participation Through Innovation
To expand market participation, especially among young Nigerians, NGX recently launched NGX Invest, a digital investment platform aimed at simplifying access to primary market offers and improving financial literacy among students, youth corps members, and new investors.
The exchange is also actively engaging institutional players such as pension funds and mutual funds while rolling out new financial products, including Exchange Traded Funds (ETFs), derivatives, and ethical investment options, to attract a broader class of investors.
Pan-African Integration in Focus
Kwairanga also touched on NGX’s plans to integrate Nigerian markets with other African exchanges. Under this initiative, Nigerian investors will be able to trade securities listed in countries such as Ghana, thereby fostering cross-border investment and regional financial stability.
Despite ongoing challenges, including low disposable incomes, infrastructure deficits, and global economic uncertainties—Kwairanga expressed confidence in Nigeria’s resilience and its ability to evolve into a more mature and dynamic capital market.
NGX Posts Strong May Performance
In May 2025, the NGX delivered Africa’s second-best return, recording a month-to-date gain of 5.62%. This performance placed it ahead of the Casablanca, Johannesburg, Egyptian, and Ghanaian exchanges. Only Kenya’s Nairobi Securities Exchange outpaced Nigeria, with a 6.4% return.
As the NGX awaits the landmark listing of Dangote Petrochemicals, the development is seen as a strategic inflection point capable of catalyzing long-term economic growth and reshaping Nigeria’s investment landscape.
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