The Nigerian Exchange Limited (NGX) achieved a remarkable milestone in 2024, recording N12.17 trillion from Federal Government (FGN) bonds and corporate listings. Corporate listings led the pack, contributing N6.2 trillion, surpassing the N5.95 trillion raised through FGN bonds. Major FGN bond listings included significant tranches such as 18.50 percent FGN Feb 2031 and 19 percent FGN Feb 2034, collectively worth over N1.77 trillion. The increased activity in the FGN bond market was driven by high inflation, which attracted Pension Fund Administrators (PFAs) to these low-risk, high-yield instruments.
Corporate listings featured prominently, with several significant contributions throughout the year. Sovereign Trust Insurance Plc kicked off with a N1.43 billion listing, followed by noteworthy additions from companies such as Ellah Lakes Plc and Chapel Hill Denham Management Limited. Transcorp Power Plc made the biggest splash in March with a massive N1.8 trillion listing. Other major contributors included VFD Group Plc with N12.5 billion, International Breweries Plc with N516.22 billion, and Aradel Holdings Plc, which listed a colossal N3.05 trillion by introduction.
The strong demand for FGN bonds reflected investor confidence in the federal government’s ability to meet its debt obligations, supported by attractive yields and low volatility. Analysts noted that the oversubscription of FGN bonds underscored their appeal as a reliable investment option, particularly in an inflationary environment. Corporate listings further highlighted the dynamism of the Nigerian capital market, providing diverse opportunities for investors and bolstering market liquidity.