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Nigerian Exchange Group

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Nigerian Stock Exchange
TypeStock exchange
LocationLagos, Lagos State, Nigeria
Founded1961
OwnerNigerian Exchange Group Plc.
Key peopleTemi Popoola
CurrencyNaira (₦)
No. of listings328
Market cap₦56.45 trillion (June 11, 2024)
IndicesNSE All-Share
NSE Premium
NSE 30
NSE 50
NSE Corporate Governance Index
NSE Banking
NSE Consumer Goods
Websitengxgroup.com

The Nigerian Stock Exchange (NSE), now Nigerian Exchange Group, is an integrated stock exchange group in Africa founded in 1961 in Lagos. Following the demutualization of the NSE in 2021, NGX Group now has 3 subsidiaries - Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation (NGX RegCo, the independent regulation company; and NGX Real Estate (NGX RelCo). [1] The operating exchange, NGX, is a multi-asset exchange with 393 listed securities, comprising 151 listed companies (8 Premium Board, 133 Main Board, 7 Growth Board and 3 ASeM companies), 157 Fixed Income securities, including Green Bonds and Sukuk (106 FGN, 8 State and 43 Corporate Bonds), 12 Exchange Traded Products, 4 Index Futures and 69 Memorandum listings, as at September 12, 2024.[2]

Mission

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The NGX mission is to enable businesses and investors to have reliable access to capital and provide secure saving systems and structure for effective and efficient business operations.[3]

History

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The Nigerian Stock Exchange was initially founded on September 15, 1960 as the Lagos Stock Exchange.[4] The exchange is the oldest existing stock exchange in West Africa.[5] There were seven subscribers to the Exchange's Memorandum of Association: R.S.V. Scott, representing C.T. Bowring and Co. Nigeria Ltd.; Chief Theophilus Adebayo Doherty; John Holt Ltd; Investment Company of Nig. Ltd.(ICON); Sir. Odumegwu Ojukwu; Chief Akintola Williams; and Alhaji Shehu Bukar.

Operations began officially on August 25, 1961, with 19 securities listed for trading. However, informal operations had commenced earlier in June 1961. Operations were initially conducted inside the Central Bank building with four firms as market dealers: Inlaks, John Holt, C.T. Bowring, and ICON (Investment Company of Nigeria).[6] The volume for August 1961, was about 80,500 pounds and it rose to about 250,000 pounds in September of the same year with the bulk of the investments in government securities.[7] In December 1977 it became known as The Nigerian Stock Exchange, with branches established in some of the major commercial cities of the country.

In 2021, the demutualisation of the NSE was initiated which led to the emergence of the Nigerian Exchange Group (NGX Group) Plc and three subsidiaries – Nigerian Exchange Limited (NGX), NGX Regulation Limited (NGX RegCo), and NGX Real Estate Limited (NGX RelCo).[8] [9][10]

Operations

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Nigerian Exchange has been operating an Automated Trading System (ATS) since April 27, 1999, with dealers trading through a computer network. In 2013, NGX launched its next-generation trading platform, X-Gen, intended to enable electronic trading for the retail and institutional segments. Trading on The Exchange starts at 9.30 a.m. and closes at 2.30 p.m. every Monday - Friday. Market prices, along with an All-Share Index, NGX 30, and Sector Indices, are published daily in The Stock Exchange Daily Official List, NGX CAPNET (an intranet facility), newspapers, and on the stock market page of the Reuters Electronic Contributor System. Historical price and performance data are also posted on the NGX website.

In order to encourage foreign investment into Nigeria, the government has abolished legislation preventing the flow of foreign capital into the country. This has allowed foreign brokers to enlist as dealers on the exchange, and investors of any nationality are free to invest. Nigerian companies are also allowed multiple and cross-border listings on foreign markets.

In a bid to promote transparency and trust in the capital market, NGX reconstituted the Investors' Protection Fund in 2012. The Fund is mandated to compensate investors who suffer pecuniary loss arising from the revocation or cancellation of the registration of a dealing member; insolvency, bankruptcy or negligence of a dealing member; or defalcation committed by a dealing member or any of its directors, officers, employees or representatives.[11]

Regulation

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The NGX is regulated by the Nigerian Securities and Exchange Commission.[12]

Leadership and subsidiaries

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Nigerian Exchange Group is led by a Group Managing Director/Chief Executive Office, a position currently held by Temi Popoola.[13] Following the demutualisation and rebranding in 2021, NGX Group is made up of the following wholly owned subsidiaries:

  • Nigerian Exchange Limited (NGX), with Jude Chiemeka as the Chief Executive Officer
  • NGX Regulation Limited (NGX REGCO) led by the Chief Executive Officer, Olufemi Shobanjo
  • NGX Real Estate Limited (NGX RELCO), led by the Acting Chief Executive Officer, Gabriel Igbeka. [14]

In October 2022, the NGX Board announced the appointment of Dr. Umaru Kwairanga as its new chairman.[15][16][17]

Current and Past Chairmen of NGX Group

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Indices

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The Exchange maintains a value-weighted All-Share Index formulated in January 1984 (January 3, 1984, = 100). Its highest value of 66,371.20 was recorded on March 3, 2008. The Exchange also uses the NSE-30 Index, which is a sample-based capitalization-weighted index, as well five sector indices. These are the NSE Consumer Goods Index, NSE Banking Index, NSE Insurance Index, NSE Industrial Index, and NSE Oil/Gas Index.[18]

Associations

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The Nigerian Exchange is a member of the World Federation of Exchanges (FIBV). It is also an observer at meetings of the International Organization of Securities Commissions (IOSCO) and a founding member of the African Stock Exchanges Association (ASEA). On 31 October 2013, it joined the Sustainable Stock Exchanges Initiative (SSE).[19]

See also

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References

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  1. ^ "NSE now NGX Group".
  2. ^ "NGX Listed Securities".
  3. ^ "About Us - Nigerian Exchange Limited". Retrieved 2022-02-22.
  4. ^ "The Stock Exchange". The Nigerian Stock Exchange. Retrieved 2012-06-08.
  5. ^ Lukasiewicz, Mariusz. "Finance, Investment and Decolonisation in Nigeria." Zeitschrift für Unternehmensgeschichte 67, no. 2 (2022): 189-217.
  6. ^ Opening of Lagos Stock Exchange. The Financial Times (London, England), Thursday, June 15, 1961; pg. 5; Edition 22,417
  7. ^ Good Start on Lagos S. E. The Financial Times (London, England), Tuesday, October 24, 1961; pg. 5; Edition 22,528
  8. ^ Jeremiah, Urowayino (2021-04-13). "Nigerian Exchange launches new corporate identity". Vanguard News. Retrieved 2022-10-10.
  9. ^ Ayodele, Mercy (2021-04-22). "EXPLAINER: What NSE's rebranding as Nigerian Exchange Group means". Businessday NG. Retrieved 2022-10-10.
  10. ^ "Nigerian Exchange Group launches new corporate identity | Marketing Edge Magazine". Marketing Edge Magazine. 2021-04-13. Retrieved 2022-10-10.
  11. ^ "NSE Investors' Protection Fund" (PDF).
  12. ^ "What We Do". SEC Nigeria. Retrieved 2011-06-08.
  13. ^ "Temi Popoola named GMD/CEO Nigerian Exchange Group". Nairametrics. 2021-01-06. Retrieved 2024-01-01.
  14. ^ "Jude named CEO Nigerian Exchange Limited". Nairametrics. 2021-01-06. Retrieved 2024-01-01.
  15. ^ "NGX Group appoints new chairman The Nation Newspaper". 2022-10-10. Retrieved 2022-10-10.
  16. ^ Rapheal (2022-10-10). "NGX Group appoints Kwairanga as new chairman". The Sun Nigeria. Retrieved 2022-10-10.
  17. ^ "Leadership - Nigerian Exchange Limited". Retrieved 2022-10-10.
  18. ^ "All-Share Index". NSE. Archived from the original on 2012-06-22. Retrieved 2012-06-09.
  19. ^ "Nigerian Stock Exchange joins United Nations Sustainable Stock Exchanges Initiative". UNCTAD. Retrieved 9 May 2014.
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