Economic growth: NGX Group says committed to working with Govt

The Board and Management of Nigerian Exchange Group Plc (NGX Group) said that they are open to working with the Federal government, as well as stakeholders towards improving the country’s credit profile and creating a favourable environment for both domestic and foreign. This comes on the heels of bullish sentiments seen in Nigeria’s stock market recently.

This was disclosed by Umaru Kwairanga, Group Chairman, NGX Group, during the Group’s 62nd Annual General Meeting (AGM) which took place in Lagos on Friday.

Addressing shareholders at the meeting, Kwairanga, lauded president Tinubu-led administration for the various reforms that have resulted in the impressive performance of the market. “The capital market community is excited by the new government and the steps it has so far taken with respect to the economy as reflected in the tremendous growth in our market indicators. As a group, we are committed to working with the government to stimulate further growth in the economy, address higher capital costs, as this will go a long way to enhance Nigeria’s credit profile, and create a favourable environment for both domestic and foreign investors,” he said.

Kwairanga further noted that the Federal government needs to eke out more friendly market policies that will engender growth as consistent and faithful implementation of market policies will help businesses to thrive. He added that the group is hopeful that the planned Initial Public Offer (IPO) of the NNPC Limited will be fast-tracked by the Tinubu-led administration.

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Speaking on the performance of the group, Kwairanga noted that NGX Group demonstrated resilience in 2022, achieving a 10.3 percent increase in gross earnings to N7.5 billion, despite a challenging economic environment. The Group’s total revenue grew primarily due to a 6.8 percent increase in revenue to N6.2 billion, and a 30.1 percent increase in other income to N1.3 billion.

The growth in its revenue was further bolstered by a 51.2 percent increase in treasury investment income and a 9 percent increase in transaction fees. However, its total expenses rose by 35.5 percent to N8.8 billion, primarily due to interest costs on borrowed funds used for strategic acquisitions.

“Achieving an efficient capital mix and broadening our access to capital remain fundamental to our mission. The Board will continue to assist the Management team in addressing long-term risks, strengthening the global NGX brand, and assessing progress toward our goal of being Africa’s preferred exchange hub,” said Kwairanga.

While welcoming the new board members, Kwairanga commended the contributions of the outgoing board members to the growth and development of the organization.

Commending the group’s performance, Oscar N. Onyema, Group Chief Executive Officer, NGX Group said the performance reflects NGX Group’s commitment towards driving growth in Nigeria and Africa’s capital markets. Onyema further added that the group is proud to have generated multiple income streams that enabled it to overcome economic headwinds.

Speaking on the group’s outlook, Onyema expressed optimism around the opportunities and challenges ahead and emphasized the group’s commitment to leveraging its strengths and expertise to drive growth and value creation in Nigeria and other financial markets Africa.

“NGX Group will continue supporting its operating subsidiaries, associates, and investee companies to deliver sustainable value creation for its shareholders. We will look to enhance our performance by continuously striving to optimise operations, increase revenue streams and expand our market reach.

“We are confident that these measures will enable us to build on the positive momentum we have achieved in recent years and drive growth in 2023 and beyond,” he said.

Shareholders approved all resolutions on the agenda, which included the appointment of six Directors of Nigerian Exchange Group Plc: Nonso Okpala (Non-Executive Director), Sehinde Adenagbe (Non-Executive Director), Ademola Babarinde (Non-Executive Director), Mosun Belo – Olusoga (Independent Non-Executive Director), Mohammed Garuba (Non-Executive Director) and Fatima Wali- Abdurraham (Independent Non-Executive Director).