NGX Group Tasks FG on More Friendly Market Policies

By Aduragbemi Omiyale

The Nigerian Exchange (NGX) Group Plc has tasked the federal government, under the leadership of President Bola Tinubu, to come up with more friendly market policies to attract foreign investment inflows.

At its Annual General Meeting (AGM) in Lagos on Friday, the chairman of the organisation, Mr Umaru Kwairanga, assured that the company would work with the government to achieve this goal.

He lauded the various reforms of this administration 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, and 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.

But Mr Kwairanga noted that the federal government needs to eke out more friendly market policies that will engender growth as the consistent and faithful implementation of market policies will help businesses to thrive.

He added that the group was hopeful that the planned Initial Public Offer (IPO) of the NNPC Limited would be fast-tracked by the Tinubu-led administration.

Speaking on the performance of the group, Mr Kwairanga noted that the organisation demonstrated resilience in 2022, achieving a 10.3 per cent increase in gross earnings to N7.5 billion, despite a challenging economic environment.

Its total revenue grew primarily due to a 6.8 per cent increase in revenue to N6.2 billion and a 30.1 per cent increase in other income to N1.3 billion.

The growth in its revenue was further bolstered by a 51.2 per cent increase in treasury investment income and a 9.0 per cent increase in transaction fees. However, its total expenses rose by 35.5 per cent 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,” remarked Mr Kwairanga.

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

Commending the group’s performance, the Group Chief Executive Officer, Mr Oscar Onyema, 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, he expressed optimism about 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 in 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 optimize 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, including the appointment of six Directors of Nigerian Exchange Group Plc: Mr Nonso Okpala (Non-Executive Director), Mr Sehinde Adenagbe (Non-Executive Director), Mr Ademola Babarinde (Non-Executive Director), Mrs Mosun Belo – Olusoga (Independent Non-Executive Director), Mr Mohammed Garuba (Non-Executive Director) and Mrs Fatima Wali- Abdurraham (Independent Non-Executive Director).