The Nigerian Exchange (NGX) Limited has marked a remarkable turnaround, breaking away from the poor performance of the 2015–2019 period to thrive in the 2020s. Following the oil price crash in 2015 and the ensuing recession in 2016, the 2020s have ushered in a period of unprecedented growth for Nigeria’s stock market.

Since 2020, the All-Share Index (ASI) has delivered a stellar return of 283.45 per cent, climbing from 26,842.07 points at the end of 2019 to 102,926.40 points as of December 2024. Standout years include 2020, 2023, and 2024, as investors sought higher real returns from equities amid negative yields in the fixed-income markets. The index closed 2024 with an impressive annual growth of 37.65 per cent.

The depreciation of the naira, driven by macroeconomic reforms by the Central Bank of Nigeria (CBN) and the federal government, has significantly boosted the performance of the stock market. Foreign capital inflow has steadily increased, rising from a low of 4 per cent in mid-2023 to an average of 16 per cent by November 2024.

Additionally, high-profile listings have energized trading activities on the exchange, providing investors with a broader range of blue-chip stocks. Notable entries include Geregu Power Plc, Transcorp Power Plc, Aradel Holdings, and BUA Foods. These listings have propelled the market capitalization from N12.79 trillion at the end of 2019 to N62.76 trillion as of December 2024, representing a meteoric increase of N49.97 trillion.

At the Closing Gong Ceremony marking the end of 2024 trading activities, NGX’s chief executive of Mr Jude Chiemeka, represented by the Head of Trading and Products, Mr Abimbola Babalola, commended key stakeholders, including the stockbroking community represented by the Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON).

“The year 2024 witnessed significant activity in the secondary market, a testament to the efforts of our trading license holders. Complementary macroeconomic fundamentals were instrumental, and we appreciate the impactful policymaking by the CBN and the Federal Ministry of Finance. We also commend the Securities and Exchange Commission for its effective oversight, especially during the smooth banking recapitalization process,” he said.

CIS President and Chairman of Council, Mr Oluropo Dada, and ASHON Chairman, Mr Sam Onukwue, represented by the 2nd Vice Chairman, Mrs Ify Rita Ejezie, emphasized the pivotal role of stockbrokers in driving the capital market growth. They reiterated their commitment to advocating for policies that enhance market development.

Despite the impressive growth, challenges remain. According to Proshare’s 2025 market outlook, Nigeria’s capital market continues to grapple with high transaction costs, information asymmetry, monetary tightening, low trading volumes, and wide bid-ask spreads, all of which stifle liquidity. However, the report underscores the potential of leveraging the equity market through the listing of national assets, such as NNPC, to unlock liquidity and stimulate domestic and foreign investment.

Temi Popoola, GMD/CEO of Nigerian Exchange Group, reflected on the market’s resilience and growth trajectory: “Nigeria’s capital market has proven itself as a hub of resilience and innovation, consistently offering valuable opportunities for investors. The strong performance of our blue-chip companies over the past decade has been a key driver of returns, even amid challenging economic cycles. Inflationary pressures have made equities an attractive hedge, and strategic new listings have significantly boosted market activity.”

He further highlighted the transformative impact of policy reforms: “Macroeconomic shifts, particularly in the oil and gas sectors and currency devaluation, have been transformative. These changes, coupled with the liberalization of exchange rates, have enhanced operational efficiency and contributed to the robust performance of listed companies. As we approach 2025, we remain optimistic that continued reforms and a stable macroeconomic environment will sustain growth, boost liquidity, enhance investor confidence, and deliver long-term value for all market participants.”

By Adedapo Adesanya

Nigeria has set an increased target of 3 million barrels per day by the end of 2025, the Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has said.

Speaking during the flag-off ceremony of Operation Delta II in Port Harcourt, Mr Lokpobiri commended the Navy’s leadership under Chief of the Naval Staff, Vice Admiral Emmanuel Ikechukwu Ogalla, for its role in curbing crude oil theft and pipeline vandalism.

The oil minister also said Nigeria’s crude oil production has surged to 1.8 million barrels per day from barely 1 million barrels per day earlier this year.

The Minister described the Trans-Niger Pipeline, TNP, as a hotspot for illegal activities.

“When I became minister, we were producing barely a million barrels per day, but today, we are doing 1.8 million barrels. Our target is to achieve at least 3 million barrels by this same time in 2025,” Mr Lokpobiri stated.

He emphasised that increased production would generate more revenue for the federal, state, and local governments, enabling the administration of President Bola Tinubu to fund critical infrastructure.

However, he stressed that achieving this goal requires collaboration from all stakeholders, including traditional rulers, youth groups, civilian security contractors, and other security agencies.

Also speaking, Mr Ogalla expressed optimism about surpassing the 3 million barrels production target, attributing the progress to President Bola Tinubu’s directives and enhanced security measures.

“Last year, we were at 1.4 million barrels per day when we launched this operation. Today, we are at 1.8 million barrels, and with the new assets we are deploying—armed drones, attack helicopters, and improved intelligence sharing—we are confident we will surpass the 3 million barrels target,” he said.

He added that the Navy’s operations, bolstered by advanced technology and inter-agency cooperation, are pivotal to Nigeria’s efforts to curb oil theft and ensure maximum crude output.

Despite being Africa’s largest producer, Nigeria hasn’t been able to top its 2.5 million barrels per day production achieved almost 20 years ago as underinvestment, infrastructure constraints, and oil theft have contributed to low production numbers over the years.

By Dipo Olowookere

An agro-industrial company in Nigeria, Presco Plc, is planning to raise about N100 billion from the local capital market for the acquisition of oil palm firm in Ghana.

Presco, in a notice to the Nigerian Exchange (NGX) Limited, said the funds would be sourced from the sale of corporate bonds to investors.

It was disclosed that the debt instrument would be issued next month, with proceeds specifically for the purchase of Ghana Oil Palm Development Company (GOPDC) Limited.

The company further said a part of the funds from the N100 billion bond sale under its N150 billion bond issuance programme would be used to expand its operations to deliver more value to shareholders.

Already, all the necessary regulatory approvals, including from the Securities and Exchange Commission (SEC), have been obtained.

Presco stated in the notice signed on behalf of the company secretary, Abdulai, Taiwo & Co. Solicitors, by Mr Alayo Ogunbiyi, that the exercise will begin on Friday, January 10, 2025.

“Presco Plc has obtained approval of its board of directors to access medium to long-term debt funding from the domestic capital market of up to N100 billion series 1 bond under its N150 Billion bond programme.

“All the relevant approvals from the Securities and Exchange Commission, in respect of the issuance, have been received. The bond issue commences immediately to close on Friday, January 10 2025.

“The proceeds of the funds will be applied towards funding the acquisition of Ghana Oil Palm Development Company (GOPDC) Limited and expansion on existing operations by Presco Plc,” the statement read.