NGX to implement new strategy to leverage demutualisation gains

As part of ongoing activities to improve business operations and processes at the Nigerian Exchange Limited (NGX), the Board of the Exchange has approved a new strategy centred on digital transformation, strategic partnerships, and customer-centric solutions.

The new structure, which became effective from March 1st, is designed to increase efficiency, enhance value, reduce cost, and maximise revenue generation.

These will ensure that the bourse becomes a “leading” organisation with a focus on deepening the capital market, diversifying its products and services, enhancing retail participation, and adding value to stakeholders across board.

This comes on the back of impressive performance recorded at the Exchange following the demutualisation.

2021 performance

In 2021, NGX experienced growth in trading figures with the NGX All Share Index returning 6.1% and turnover in the fixed income market increasing by 158.19%. Equity capitalisation rose by 5.89%, while fixed income figures rose by 12.81% during the year.

The Group’s audited results revealed that its gross earnings grew to N6.8 billion from N6.0 billion, a 13% increase. Revenue rose by 14.9% from N5 billion recorded in 2020 to N5.8 billion in 2021.

Also, the group’s profit before tax (PBT) increased by 25.4% to N2.4 billion while its profit after tax (PAT) rose by 22.2% to N2.3 billion from N1.84 billion recorded in the corresponding period of 2020.

According to the Group, the jump in its revenue was driven by a 24.8% growth in listing fees, which grew to N757.4 million as against N606.9 million in 2020, 4.9% growth in its treasury investment income and a 2.1% growth in transaction fee, which rose to N2.9 billion from N2.8 billion recorded in 2020.

The new structure, which became effective from March 1st, is designed to increase efficiency, enhance value, reduce cost, and maximise revenue generation.

Several landmark transactions were also recorded including the first-ever end-to-end digital offer in the Nigerian capital market, the ground breaking listing of BUA Cement Plc’s N115 billion bond, the largest corporate bond issuance and a host of others, the Exchange said in a statement.

To effectively consolidate these results, the Board approved the restructuring of the bourse to efficiently implement its new strategy, which includes a change in the organisational structure to reposition the workforce to deliver competitive value in today’s dynamic technology-driven global capital market.

The statement also said the Exchange will therefore transition from an operational structure of four Divisions, namely, Listings Business, Trading Business, Business Support Services, and Technology Services, to three divisions namely: Capital Markets, Digital Technology, and Business Support Services.

The NGX also appreciated the efforts of all employees in building the thriving Exchange, adding that these actions are necessitated by the need to effectively position the bourse to lead the digitalisation and digital transformation of the Nigerian capital market.

This new strategy reflects the Exchange’s commitment to developing the capital market through agile, innovative, and disruptive approaches, which will in turn contribute to the growth of Nigeria’s economy.

The NGX said it remains focused on providing investors and businesses a reliable, efficient, and adaptable exchange hub in Africa, to save and access capital.

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