The shares of the Nigerian Exchange Group (NGX) soared to N100 last Friday, marking a remarkable 43% year-to-date rally that outpaced the broader market and all key benchmarks. This surge reflects renewed investor confidence in the Group after years of volatility, positioning NGX as one of Nigeria’s most closely watched financial assets.
After the 2021 demutualisation of the Nigerian Stock Exchange, NGX shares initially listed at N27 but fell sharply to N17 by 2023, raising concerns about investor value and the effectiveness of the demutualisation process. Today, however, the Exchange’s fortunes have reversed, driven by strengthened Board governance, innovative management strategies, and a more transparent approach that appeals to both institutional and retail investors.
Analysts attribute the rebound to the diligence of the Board and executive team. Mr. Yadinma Onwu, Executive Vice Chairman of Fund Matrix, emphasized that the stock’s performance is a reflection of NGX’s intrinsic value. “The leadership has harnessed economic reforms and renewed investor appetite for Naira-denominated assets, ensuring sustainable growth,” he said. This confidence has helped NGX emerge as a market leader, delivering strong returns to shareholders over the past two years.
Dr. Lizzie Kings-Wali, CEO of 4Stone Capital, highlighted the role of regulatory reforms in boosting NGX’s value. From shortening settlement cycles to implementing new capital requirements for operators, coordinated efforts between the Securities and Exchange Commission and NGX’s Board have reinforced investor trust. “The shares’ rise from N17 to N100 demonstrates the long-term potential of equity investments for savvy investors who recognize strong leadership and market fundamentals,” she noted.
Leadership has been central to this turnaround. Alhaji Umaru Kwairanga, NGX Board Chairman, and Group Managing Director Temi Popoola have implemented governance reforms, welcomed new Board members, and cultivated a culture of innovation and execution. Analysts believe the next challenge will be consolidating these gains to continue creating shareholder value while deepening capital market penetration. For now, investors are the clear winners in NGX’s resurgence story.
source: thisday