The Nigerian Exchange Limited (NGX) is set to introduce a new pricing methodology for equities trading from August 17, 2026, following approval by the Securities and Exchange Commission (SEC). The new NGX stock price rules are designed to improve price discovery, strengthen market integrity and make published share price movements more reflective of meaningful market activity.
Under the revised framework, not every trade will automatically trigger a change in a stock’s published price. Only transactions that meet specific minimum volume requirements will be considered when recording price movements. According to the exchange, the move is aimed at reducing the possibility of low-volume trades creating misleading price changes and giving greater weight to transactions with significant economic value.
The new system introduces different minimum trade quantities based on the prevailing price of each stock. Equities trading at N1,000 and above will require at least 10,000 units for a published price movement, while stocks priced between N500 and N999.99 will need a minimum of 50,000 units. For equities trading below N500, investors will need a trade of at least 100,000 units before a price change can be recorded.
Despite the changes, NGX clarified that the existing daily price movement limits for listed equities will remain unchanged. The Association of Stockbroking Houses of Nigeria (ASHON) confirmed that the revised methodology will take effect on August 17 and urged trading licence holders and other market participants to familiarise themselves with the new requirements and make the necessary operational adjustments before implementation.
The new pricing framework could mark another step toward a more transparent and efficient Nigerian capital market, particularly as investors increasingly rely on published stock prices to make trading decisions. By placing greater emphasis on trades with meaningful volume, NGX expects the system to support more reliable price discovery and strengthen confidence in the market.
source: The Guardian
