The Nigerian Exchange Group Plc (NGX Group) reported a robust revenue increase to N24 billion in its 2024 financial year, propelled by bank recapitalization and high-profile listings, according to a CardinalStone research report. The group’s diversified revenue streams, primarily from investment income, transaction fees, and listing fees, accounted for 68.7% of total revenue, with transaction income surging 64% and listing fees skyrocketing 397.1% in 2024.
Regulatory mandates raising minimum share capital requirements for banks, alongside listings from companies like Aradel Holdings Plc and Transcorp Power Plc, drove a 56.3% year-on-year increase in market turnover. Core business revenue jumped from N8.3 billion in 2023 to N16.9 billion in 2024, reducing reliance on associate profits from investments in CSCS and NG Clearing Limited. The NGX Group invested N1.4 billion in technology and market development, supporting N1.8 trillion in banking sector capital raises, while workforce optimization enhanced efficiency, boosting profit before tax by 157.3%.
Naira devaluation in 2023 and 2024 contributed N4 billion in foreign exchange gains, though stabilization in early 2025 muted this impact. Looking ahead, NGX Group projects N20.8 billion in 2025 revenue, anticipating fewer FX gains but aiming for five new listings annually to drive growth. The group is expanding its offerings with equities, fixed income, ETFs, derivatives, and innovative instruments like tokenised securities, targeting 10 million new retail investors through enhanced digital platforms.
Strategic initiatives, including cross-border integration via platforms like PAPSS and African exchange partnerships, aim to boost liquidity. CardinalStone forecasts a five-year revenue growth rate of 12.9%, with EBITDA margins at 46.6% and a return on equity of 17.8%. Despite a recent N439 billion market value drop and economic challenges like naira volatility (N1,560/$1) and 21.88% inflation in July, Nigeria’s 67.12% surge in capital importation to $5.64 billion in Q1 2025 underscores NGX Group’s strong position for sustained growth.
