The Nigerian Exchange Group Plc (NGXGROUP) has posted a remarkable revenue surge to N24 billion in the 2024 financial year, boosted largely by the ongoing recapitalisation of Nigerian banks and a wave of high-profile listings.
The milestone reflects the resilience of Nigeria’s capital market and the Group’s ability to diversify income streams, even in the face of macroeconomic headwinds.
A research report by CardinalStone revealed that the Group’s performance was anchored on strong transaction fees, listing income, and investment returns.
According to the report, transaction and listing fees together accounted for nearly 69 per cent of NGXGROUP’s total revenue, demonstrating the critical role of market activities in sustaining the exchange’s profitability.
The Central Bank of Nigeria’s directive that raised the minimum share capital requirement for commercial banks played a decisive role in fuelling market turnover.
With lenders racing to shore up their balance sheets, fresh equity raises injected liquidity and investor activity into the market.
High-profile listings, including Aradel Holdings Plc and Transcorp Power Plc, further accelerated trading activity.
These factors led to a 56.3 per cent year-on-year growth in market turnover between 2023 and 2024, highlighting how regulatory reforms and strategic listings serve as powerful catalysts for market vibrancy.
As a result, NGXGROUP recorded a 64 per cent increase in transaction income and an eye-catching 397.1 per cent surge in listing fees in the 2024 financial year.
CardinalStone noted that NGXGROUP delivered a 157.3 per cent rise in profit before tax, supported by tight cost management, workforce optimisation, and digital investments.
The Group invested about N1.4 billion in technology and market development initiatives, a move that enhanced operational efficiency and widened digital offerings for retail and institutional investors alike.
In addition, Nigeria’s currency reforms and naira devaluation in 2023 and 2024 provided a short-term boost, contributing N4 billion in net foreign exchange gains.
However, the report cautioned that with relative currency stability in 2025, FX-driven gains are unlikely to repeat at the same scale.
Historically, NGXGROUP derived significant income from its associates, including equity stakes in the Central Securities Clearing System (CSCS) and NG Clearing Limited.
But with core business revenue climbing to N16.9 billion in FY’24, up from N8.3 billion in FY’23, the Group has reduced its reliance on these external contributions, cementing its transition into a more self-sustaining enterprise.
Despite the stellar 2024 results, NGXGROUP projects a slightly moderated income outlook of N20.8 billion in 2025, reflecting anticipated lower FX gains and cautious expectations on transaction volumes.
Nevertheless, the Group is setting ambitious growth targets, including securing an average of five new listings annually.
To strengthen its long-term strategy, NGXGROUP is broadening its product portfolio beyond equities.
Plans are underway to deepen activity in fixed income, exchange-traded funds (ETFs), derivatives, Nigerian Depository Receipts (NDRs), Single Stock Futures, and tokenised securities.
These offerings are expected to attract a wider investor base, particularly among retail participants and international institutions.
A key priority for NGXGROUP is to expand retail investor inclusion.
The Group has set a bold target of reaching 10 million new retail investors, supported by enhanced digital platforms and simplified access to trading opportunities.
On the regional front, NGXGROUP is leveraging partnerships such as the Pan-African Payment and Settlement System (PAPSS) and other African exchange collaborations.
These initiatives are expected to create seamless cross-border trading, expand liquidity, and draw foreign inflows into Nigeria’s capital market.
Speaking on the report’s findings, analysts emphasised that the Nigerian capital market is at a critical turning point.
While the recapitalisation exercise and major listings have created strong momentum, challenges remain.
These include foreign exchange volatility, investor confidence concerns, and ensuring that digital infrastructure keeps pace with market expansion.
Still, the medium-to-long-term outlook remains highly positive.
According to CardinalStone, NGXGROUP is well-positioned to sustain profitability, with a projected five-year revenue compound annual growth rate (CAGR) of 12.9 per cent, EBITDA margins averaging 46.6 per cent, and a return on equity forecast at 17.8 per cent.
Industry stakeholders believe that if the Group successfully executes its diversification strategy, Nigeria’s exchange could evolve into a leading hub for African capital markets, comparable with Johannesburg Stock Exchange and Nairobi Securities Exchange.
With its N24 billion revenue milestone, NGXGROUP has proven that Nigeria’s capital market can thrive under reform, innovation, and strategic execution.
The next challenge lies in sustaining this momentum while adapting to the realities of a complex and evolving economic environment.