Shareholders Urge Strategic Reforms to Boost Nigerian Stock Market Momentum
Breaking Down the Key Highlights
The Nigerian Exchange Limited (NGX) saw significant growth in 2024, with over ₦4 trillion in new listings driving market activity. Shareholders and market experts are now calling for strategic reforms to sustain this momentum in 2025. Here’s a detailed breakdown of the news:
1. Achievements of 2024
• ₦4 Trillion in Listings: The NGX experienced a transformative year, becoming one of the best-performing exchanges globally.
• Major Listings:
• Aradel Holdings: Added ₦3 trillion to market capitalization.
• Transcorp Power: Contributed ₦1.8 trillion, strengthening Nigeria’s role in Africa’s energy sector.
• Haldene McCall: Brought in ₦3 billion, showcasing the diversity of opportunities in the NGX.
• Outcome: Increased investor confidence, higher trading volumes, and a surge in liquidity.
2. Shareholders’ Recommendations ️
To keep the momentum, shareholders emphasized the need for government and regulatory actions:
• Public-Private Partnerships (PPP): Use the capital market to fund large-scale infrastructure projects to boost the economy and attract foreign investments.
• Enhanced Market Benefits: NGX should focus on:
• Easier access to long-term capital.
• Increased corporate visibility.
• Building investor confidence.
• Ease of Doing Business: The government should simplify policies to attract more investors.
3. Challenges & Proposed Solutions ⚙️
• Business Owners’ Concerns:
Companies are hesitant to list due to regulatory scrutiny and strict listing requirements.
Solution: Provide intrinsic value and reduce listing costs to encourage more companies to join the exchange.
• Innovation & Technology:
• Introduce more financial instruments.
• Improve trading technology for efficiency.
• Ensure transparency in market regulations.
4. The Path Forward for 2025
• Key Focus Areas:
• Consistent enforcement of market rules.
• Strategic reforms for a vibrant market ecosystem.
• Deepened market participation with new tools and improved oversight.
• Expected Results: Sustainable growth, a stronger capital market rally, and continued investor confidence.
Expert Opinions
• Moses Igbrude, President of the Independent Shareholders Association of Nigeria:
• Emphasized the need for government-backed PPPs and capital market utilization for infrastructure funding.
• Called for collaboration between government, regulators, and stakeholders to replicate 2024’s success.
• Patrick Ajudua, President of the New Dimension Shareholders Association of Nigeria:
• Advocated for continuous innovation and better market transparency to drive growth.
With these reforms and strategies, the NGX could maintain its record-breaking momentum in 2025, positioning itself as a leader in Africa’s capital markets.
Let’s keep an eye on the NGX—big things are on the horizon!
Breaking Down the Key Highlights
The Nigerian Exchange Limited (NGX) saw significant growth in 2024, with over ₦4 trillion in new listings driving market activity. Shareholders and market experts are now calling for strategic reforms to sustain this momentum in 2025. Here’s a detailed breakdown of the news:
1. Achievements of 2024
• ₦4 Trillion in Listings: The NGX experienced a transformative year, becoming one of the best-performing exchanges globally.
• Major Listings:
• Aradel Holdings: Added ₦3 trillion to market capitalization.
• Transcorp Power: Contributed ₦1.8 trillion, strengthening Nigeria’s role in Africa’s energy sector.
• Haldene McCall: Brought in ₦3 billion, showcasing the diversity of opportunities in the NGX.
• Outcome: Increased investor confidence, higher trading volumes, and a surge in liquidity.
2. Shareholders’ Recommendations ️
To keep the momentum, shareholders emphasized the need for government and regulatory actions:
• Public-Private Partnerships (PPP): Use the capital market to fund large-scale infrastructure projects to boost the economy and attract foreign investments.
• Enhanced Market Benefits: NGX should focus on:
• Easier access to long-term capital.
• Increased corporate visibility.
• Building investor confidence.
• Ease of Doing Business: The government should simplify policies to attract more investors.
3. Challenges & Proposed Solutions ⚙️
• Business Owners’ Concerns:
Companies are hesitant to list due to regulatory scrutiny and strict listing requirements.
Solution: Provide intrinsic value and reduce listing costs to encourage more companies to join the exchange.
• Innovation & Technology:
• Introduce more financial instruments.
• Improve trading technology for efficiency.
• Ensure transparency in market regulations.
4. The Path Forward for 2025
• Key Focus Areas:
• Consistent enforcement of market rules.
• Strategic reforms for a vibrant market ecosystem.
• Deepened market participation with new tools and improved oversight.
• Expected Results: Sustainable growth, a stronger capital market rally, and continued investor confidence.
Expert Opinions
• Moses Igbrude, President of the Independent Shareholders Association of Nigeria:
• Emphasized the need for government-backed PPPs and capital market utilization for infrastructure funding.
• Called for collaboration between government, regulators, and stakeholders to replicate 2024’s success.
• Patrick Ajudua, President of the New Dimension Shareholders Association of Nigeria:
• Advocated for continuous innovation and better market transparency to drive growth.
With these reforms and strategies, the NGX could maintain its record-breaking momentum in 2025, positioning itself as a leader in Africa’s capital markets.
Let’s keep an eye on the NGX—big things are on the horizon!