The Nigerian Exchange Group Plc (NGX Group) recorded revenue of N24 billion in the 2024 financial year, boosted mainly by the recapitalisation of Nigerian banks and a series of high-profile listings on the exchange. This was disclosed in a new research report released by CardinalStone, which reviewed the performance of the Exchange and its subsidiaries.
According to the report, the Group’s revenue base remained diversified, with income coming from multiple subsidiaries and services. The revenue mix was largely driven by investment income, transaction fees, and listing fees, which together accounted for 68.7 per cent of total revenue for the year ended 2024.
The report explained that new regulatory directives by the Central Bank of Nigeria, which raised minimum share capital requirements for commercial banks, encouraged more fundraising activities in the market. In addition, big-ticket listings like Aradel Holdings Plc and Transcorp Power Plc attracted investor participation and raised overall market turnover. Between 2023 and 2024, average market turnover grew by 56.3 per cent year-on-year.
This development translated into stronger revenue for the Group, with transaction income rising by 64 per cent and listing fees climbing by a record 397.1 per cent in the 2024 financial year. CardinalStone noted that these two income streams remain the backbone of the Group’s revenue growth.
Another major highlight was the surge in the Group’s core business revenue, which rose from N8.3 billion in 2023 to N16.9 billion in 2024. This reduced reliance on income from associates such as the Central Securities Clearing System (CSCS) and NG Clearing Limited, which had historically contributed significantly to overall profit.
The report also revealed that NGX Group invested about N1.4 billion in technology and market development during the year. These investments supported capital raising activities, including N1.8 trillion raised by banks in response to the recapitalisation directive. The Group also embarked on workforce optimisation and operational efficiency programmes, which helped to manage costs better and improve productivity. As a result, profit before tax jumped by 157.3 per cent.
Currency reforms and the devaluation of the naira in 2023 and 2024 also contributed positively to earnings, adding about N4 billion to the Group’s bottom line. However, CardinalStone observed that with relative currency stability in the first half of 2025, foreign exchange gains would no longer play a big role in profit growth.
Looking into the future, NGX Group is projecting a slightly lower income of N20.8 billion in 2025, compared to 2024. This is based on expectations of fewer FX gains and a cautious outlook for transaction and listing fees. However, the Exchange aims to sustain growth by targeting an average of five new listings every year.
The report further noted that NGX Group’s long-term strategy is focused on expanding the number of listed companies and broadening product offerings. These include equities, fixed income, exchange-traded funds (ETFs), derivatives, Nigerian Depositary Receipts (NDRs), Single Stock Futures, and tokenised securities to attract both local and foreign investors.
On retail participation, NGX Group is pushing digital platforms to bring more Nigerians into the market, with a target of 10 million new retail investors in the coming years. It is also exploring cross-border integration opportunities through the Pan-African Payment and Settlement System (PAPSS) and partnerships with other African exchanges to boost liquidity inflows.
CardinalStone concluded that NGX Group is well-positioned for sustainable profitability over the medium to long term. It projects a five-year compound annual growth rate of 12.9 per cent for revenue, average EBITDA margins o
