NGX Group Wants FG To Fast-track NNPCL IPO, Eyes Foreign Investment Inflows

Caption: From left, Director, Nigerian Exchange Group Plc, Mrs. Ojinika Olaghere; Group Chief Executive Officer, NGX Group, Oscar Onyema; Group Chairman, NGX Group, Dr. Umaru Kwarainga; Group Company Secretary, NGX Group, Ms. Obehi Ikhaghe and Director, NGX Group, Dr. Okechukwu Itanyi during the 62nd Annual General Meeting held at Nigerian Exchange Group House, Lagos on Friday, July 14, 2023

Amid bullish sentiments seen in recent weeks, Alhaji Umaru Kwairanga, the chairman of Nigerian Exchange Group Plc (NGX Group) said at the weekend said the nation’s capital market is ready to partner the Federal government and other stakeholders to create a favorable environment for both domestic and foreign investors, thereby improving the country’s credit profile.
Kwairanga who spoke during the Group’s 62nd Annual General Meeting (AGM) in Lagos lauded the president Bola Tinubu-led administration for the various reforms that have resulted in the impressive performance of the market.
Specifically, he expressed the hope of the group’s board and management that the planned Initial Public Offer (IPO) of the state-owned oil giant- NNPC Limited will be fast-tracked by the current administration.
Already, he continued, 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 urged the Federal Government fashion more market friendly policies that will engender growth as consistent, in addition to a faithful implementation of market policies, which he believes will help businesses thrive.
Commenting on the performance of the group in the year under review, Kwairanga told the shareholders that it demonstrated resilience in 2022, achieving a 10.3% increase in gross earnings to N7.5bn, despite a challenging economic environment, due primarily to a 6.8% growth in revenue to N6.2bn, and a 30.1% rise in other income to N1.3bn.
The growth in its revenue, he continued, was further bolstered by the 51.2% increase in treasury investment income and a 9% increase in transaction fees.
Total expenses, he said, however rose by 35.5% to N8.8bn, primarily due to interest costs on borrowed funds used for strategic acquisitions.
Going forward, he added, “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.”
The Group Chief Executive Officer, Oscar Onyema, said the performance reflected the group’s commitment to 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.
On the 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.
He assured the shareholders that the “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.