As companies increasingly turn to private funding instead of public markets, the Nigerian Exchange Group (NGX) is repositioning to tap into the growing flow of private capital as a proactive approach to tackling the growing wave of delisting from the Nigerian capital market.
Speaking on the wave of delistings that has raised concern among stakeholders at the NGX 64th yearly general meeting held in Lagos, yesterday, the Group Managing Director/Chief Executive Officer of NGX Group Plc, Temi Popoola, said the exchange is shifting its strategy to align with global trends where private equity and venture capital are becoming preferred sources of financing for businesses, especially in the tech sector.
Besides, shareholders at the meeting approved a dividend of 4.4 billion, culminating in N2 per share for every investor of the company for the 2024 financial year.
Popoola said, “There is a global increase in the demand for private capital, and Nigeria is not exempted. All our unicorns, about six of them, are powered by private capital. These companies are raising significant funds without tapping into the public markets, and that’s the direction the world is going.”
Rather than focusing solely on halting delistings, Popoola disclosed that the NGX is working to ensure it is not left behind in this shift in preference from public to private capital. He revealed that the exchange is exploring new ways to capture private capital flows and provide value to companies outside the traditional listing model.
“We might position ourselves to provide private capital access so that NGX is not just seen as a platform for public equity but as a gateway for all forms of capital. This is how exchanges across the world are adapting; some are seeing delistings, but they are also landing large listings or tapping into private deals that keep market value intact.”
Popoola added that the NGX is working closely with the Securities and Exchange Commission (SEC) to explore institutional reforms that will enhance the market’s attractiveness.
He stressed that while some drivers of delisting are external, such as global capital trends, there are internal levers within NGX’s control that must be utilised to retain and attract companies.
He also disclosed that in April, Nigeria will host a major gathering of global private capital providers, underscoring the country’s growing relevance in this space. “These investors are coming not just for private companies, but also for listed firms offering funding that does not require a listing. That is a reality we must embrace and leverage.”
The NGX boss further stated that while delistings are part of market dynamics globally, the emphasis should be on balancing exits with new, high-value entrants such as the Nigerian National Petroleum Company (NNPC) and other major firms being courted by the Exchange.
Popoola assured stakeholders of a broader shift in strategy for the NGX, one that seeks to modernise Nigeria’s capital market by integrating both public and private investment avenues to remain competitive and relevant in a rapidly evolving global financial ecosystem.
Earlier, the Chairman of the Nigerian Exchange Group Plc, Dr Umaru Kwairanga, said the Group remained steadfast in its mission to drive the capital market in 2024 despite broader macroeconomic challenges.
He said its profit before tax surged by 157.3 per cent, reflecting both top-line expansion and cost efficiency, while gross earnings rose by 103.2 per cent to N24.0 billion, supported by significant growth across key revenue lines.
Kwairanga assured shareholders of the Group’s commitment to redefine market infrastructure benchmarks and cultivate a resilient and inclusive financial ecosystem that serves the diverse needs of investors.
