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The Nigerian Exchange Group Plc (NGXGROUP) reported a surge in revenue to N24bn for the 2024 financial year, fuelled largely by the recapitalisation of Nigerian banks and major listings on the bourse, according to a new research report by CardinalStone.

The report underscored the resilience of NGXGROUP’s diversified revenue profile, supported by multiple subsidiaries. “NGXGROUP’s revenue mix is predominantly composed of investment income, transaction fees, and listing fees, which collectively accounted for approximately 68.7 per cent of total revenue in the financial year ended 2024,” the research noted.

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Between 2023 and 2024, regulatory directives that raised minimum share capital requirements for commercial banks, alongside high-profile listings such as Aradel Holdings Plc and Transcorp Power Plc, drove market turnover upward, resulting in a year-on-year average growth of 56.3 per cent across both years.

These activities significantly boosted income, with NGXGROUP recording a 64 per cent rise in transaction fees and an unprecedented 397.1 per cent jump in listing fees in FY’24. CardinalStone observed: “Transaction and listing fees remain critical pillars of our revenue growth, and the recent bank recapitalisation and strategic listings have significantly strengthened our income streams.”

The report further highlighted that while profits from associates—mainly equity holdings in CSCS and NG Clearing Limited—have historically supported earnings, their relative contribution is waning. This shift comes as NGXGROUP’s core business revenue climbed sharply to N16.9bn in FY’24, up from N8.3bn in FY’23.

During the year, the Group invested N1.4bn in technology and market development initiatives to strengthen capital market infrastructure and expand digital offerings. These investments enabled the facilitation of major capital raises, including N1.8tn raised by Nigeria’s banking sector. Workforce optimisation and tighter cost controls also supported efficiency, resulting in a 157.3 per cent growth in profit before tax.

Currency reforms and the 2023–2024 naira devaluation contributed N4bn in net foreign exchange gains to earnings. However, with relative exchange rate stability in the first half of 2025, FX support has been significantly reduced.

Looking ahead, NGXGROUP projects a total income of N20.8bn for FY’25, slightly below 2024’s performance, reflecting anticipated moderation in FX gains and a cautious outlook on transaction and listing fees. The Group also targets an average of five new listings annually, which could provide upside potential.

The research emphasised NGXGROUP’s medium- to long-term strategy of broadening market depth and offerings. These include equities, fixed income, exchange-traded funds (ETFs), derivatives, Nigerian Depositary Receipts (NDRs), Single Stock Futures, and tokenised securities, all designed to attract a wider pool of investors. The Group also plans to scale its digital platforms to onboard 10 million new retail investors.

“Strategic investments in technology and cross-border market integration through platforms like PAPSS and African exchange partnerships are expected to expand transaction opportunities and liquidity inflows from beyond Nigeria,” CardinalStone stated.

The report concluded that NGXGROUP is well-positioned for sustainable growth, projecting a five-year revenue compound annual growth rate (CAGR) of 12.9 per cent, average EBITDA margins of 46.6 per cent, and a strong return on equity at 17.8 per cent.

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