By Chukwuma Umeorah
The Nigerian Exchange Limited (NGX) ended 2024 on a high note, recording a 37.65 per cent growth in its All-Share Index (ASI) as the market continued its robust upward trajectory. The index climbed to an unprecedented 102,926.40 points by December 2024, marking a cumulative growth of 283.45 per cent since 2020.
This strong performance was driven by increased investor interest in equities, spurred by negative fixed-income yields and supportive macroeconomic reforms by the Federal Government and the Central Bank of Nigeria (CBN). Foreign capital inflows also rose, from a low of four per cent in mid-2023 to an average of 16 per cent by November 2024.
High-profile listings, including Geregu Power Plc, Transcorp Power Plc, and BUA Foods, significantly boosted market capitalisation, which soared to N62.76 trillion in 2024.
At the closing gong ceremony for trading activity for the year, NGX CEO Jude Chiemeka, represented by the Head of Trading and Products, Abimbola Babalola, praised stakeholders including the stockbroking community represented by the Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON) for their roles in achieving this milestone. “The secondary market witnessed significant activity in 2024, thanks to trading license holders and supportive policymaking by regulators.
“The year 2024 witnessed significant activity in the secondary market, a testament to the efforts of our trading license holders,” Chiemeka said.
Despite the growth, challenges such as high transaction costs and low liquidity persist. Analysts suggest that listing national assets like NNPC could further enhance the market’s appeal.
NGX Group CEO, Temi Popoola, reflected on the market’s resilience and growth trajectory. He said, “Nigeria’s capital market has proven itself as a hub of resilience and innovation, consistently offering valuable opportunities for investors. The strong performance of our blue-chip companies over the past decade has been a key driver of returns, even amid challenging economic cycles. Inflationary pressures have made equities an attractive hedge, and strategic new listings have significantly boosted market activity.”
He further highlighted the transformative impact of policy reforms: “Macroeconomic shifts, particularly in the oil and gas sectors and currency devaluation, have been transformative. These changes, coupled with the liberalisation of exchange rates, have enhanced operational efficiency and contributed to the robust performance of listed companies. As we approach 2025, we remain optimistic that continued reforms and a stable macroeconomic environment will sustain growth, boost liquidity, enhance investor confidence, and deliver long-term value for all market participants.”