Financial Sector Dominates NGX with N4.2 Trillion Contribution in Five Years
Sector Also Paid N466 Billion in Dividends in 2023
The financial sector has reinforced its dominance in the Nigerian Exchange Limited (NGX), contributing N4.2 trillion, which accounts for 51% of the total N8 trillion worth of stocks traded between 2019 and 2024.
Strong Performance and Dividend Payouts
In addition to its significant trading volume, the sector distributed a N466 billion dividend to shareholders in 2023. Six leading banks alone paid out N366.93 billion in final dividends, demonstrating the sector’s strong profitability and investor appeal.
Foreign Investments on the Rise
Investor confidence in the financial sector has surged, as foreign capital inflows increased from 4% in mid-2023 to an average of 16% by November 2024. This reflects growing international interest in Nigeria’s financial markets.
Resilience Amid Economic Challenges
Despite challenges such as currency depreciation and high inflation, the sector maintained asset quality, keeping the non-performing loan (NPL) ratio below the 5% regulatory threshold. This resilience has further solidified its role in driving market stability.
Boosting NGX Growth
The NGX All-Share Index (ASI) posted a 37.65% gain in 2024, closing at 102,926.40 points, a testament to the financial sector’s contribution to the market’s overall growth.
Call for More Listings on NGX
In light of the sector’s strong performance, the Chief Executive Officer of NGX, Jude Chiemeka, has called for policies that encourage more companies to list on the exchange. He emphasized that increasing listings would not only expand investment opportunities for Nigerians but also boost government tax revenues, as listed firms tend to have higher tax compliance rates.
Chiemeka highlighted NGX’s ongoing collaboration with the Securities and Exchange Commission (SEC) to simplify listing requirements and attract more issuers, including tech companies and unicorns, to deepen market participation.
Conclusion
With its dominant market share, strong dividend payouts, rising foreign investments, and resilience against economic headwinds, the financial sector remains a crucial pillar of the NGX. Moving forward, expanding listings and fostering greater investor participation will be key to sustaining the exchange’s momentum and supporting Nigeria’s broader economic growth.
Sector Also Paid N466 Billion in Dividends in 2023
The financial sector has reinforced its dominance in the Nigerian Exchange Limited (NGX), contributing N4.2 trillion, which accounts for 51% of the total N8 trillion worth of stocks traded between 2019 and 2024.
Strong Performance and Dividend Payouts
In addition to its significant trading volume, the sector distributed a N466 billion dividend to shareholders in 2023. Six leading banks alone paid out N366.93 billion in final dividends, demonstrating the sector’s strong profitability and investor appeal.
Foreign Investments on the Rise
Investor confidence in the financial sector has surged, as foreign capital inflows increased from 4% in mid-2023 to an average of 16% by November 2024. This reflects growing international interest in Nigeria’s financial markets.
Resilience Amid Economic Challenges
Despite challenges such as currency depreciation and high inflation, the sector maintained asset quality, keeping the non-performing loan (NPL) ratio below the 5% regulatory threshold. This resilience has further solidified its role in driving market stability.
Boosting NGX Growth
The NGX All-Share Index (ASI) posted a 37.65% gain in 2024, closing at 102,926.40 points, a testament to the financial sector’s contribution to the market’s overall growth.
Call for More Listings on NGX
In light of the sector’s strong performance, the Chief Executive Officer of NGX, Jude Chiemeka, has called for policies that encourage more companies to list on the exchange. He emphasized that increasing listings would not only expand investment opportunities for Nigerians but also boost government tax revenues, as listed firms tend to have higher tax compliance rates.
Chiemeka highlighted NGX’s ongoing collaboration with the Securities and Exchange Commission (SEC) to simplify listing requirements and attract more issuers, including tech companies and unicorns, to deepen market participation.
Conclusion
With its dominant market share, strong dividend payouts, rising foreign investments, and resilience against economic headwinds, the financial sector remains a crucial pillar of the NGX. Moving forward, expanding listings and fostering greater investor participation will be key to sustaining the exchange’s momentum and supporting Nigeria’s broader economic growth.