Nigerian Exchange Group (NGX) has revamped its strategy to tap into the increasing flow of private capital, adopting a more proactive approach to address the rising trend of delistings from the country’s capital market.
The group chairman of NGX Group, Dr Umaru Kwairanga, stated this at the Group’s 64th Annual General Meeting held in Lagos as he projected a confident vision of strategic repositioning and market expansion.
He underscored the Group’s commitment to deepening market offering and credibility, boosting investor confidence, and aligning with the federal government’s $1 trillion economy target.
He revealed the NGX’s active pursuit of large-ticket listings to transform the bourse’s stature, citing strategic engagements with both the Dangote Group and the NNPC.
“Even if it is 20 per cent or 30 per cent, let a part of NNPC be listed. This is the platform of transparency and innovation. It is time to democratise wealth and allow the Nigerian public to benefit from our national assets,” he said.
Kwairanga emphasised the Exchange’s alignment with the current administration’s economic reforms, stating, “No other institution has keyed into President Bola Tinubu’s economic agenda like NGX has. Our ambition is to double the gains from the ongoing banking recapitalisation and deliver on major listings that will redefine the capital market.”
Also, the group managing director/chief executive officer of NGX Group, Temi Popoola said the exchange is shifting its strategy to align with global trends where private equity and venture capital are becoming preferred sources of financing for businesses, especially in the tech sector.
Besides, shareholders at the meeting approved a dividend of 4.4 billion, culminating in N2 per share due to every investor of the company for the 2024 financial year.
Popoola said, “There is a global increase in the demand for private capital, and Nigeria is not exempted. All our unicorns, about six of them are powered by private capital. These companies are raising significant funds without tapping into the public markets, and that’s the direction the world is going.”
Rather than focusing solely on delistings, Popoola pointed out that the NGX is working to ensure it is not left behind in this shift in preference from public to private capital.
He revealed that the exchange is exploring new ways to capture private capital flows and provide value to companies outside the traditional listing model.
Popoola added that the NGX is working closely with the Securities and Exchange Commission (SEC) to explore institutional reforms that will enhance the market’s attractiveness.
