NNPC Listing and Market Expansion
During a strategic visit by the Board and Management of the Nigerian Exchange Group (NGX Group) to the Aso Villa, President Bola Ahmed Tinubu announced that the state-owned oil firm, NNPC Limited, will be reformed and listed on the capital market. This move aims to institutionalize market discipline, mandate audited accounts, and allow citizens to directly own shares in the national oil company.
NGX Group Managing Director and Chief Executive Officer, Mr. Temi Popoola, presented the market's growth trajectory to the President. He noted that the total value of listed stocks rose from just under ₦30 trillion when President Tinubu took office in 2023 to ₦160 trillion. Popoola projected that upcoming listings would push the market capitalization to ₦230 trillion by the end of the year.
The All-Share Index has mirrored this growth, rising from 52,000 points to 244,000 points over the last three years. This upward trajectory reflects strong domestic and international investor confidence in the nation's economic reforms.
Domestic Funding and Banking Recapitalisation
The Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso, highlighted the success of the banking sector recapitalisation. He noted that despite initial skepticism, close to 75% of the total recapitalisation funding came from domestic resources, a reversal of historical trends where foreign capital dominated such exercises.
Cardoso credited the smooth execution of the recapitalisation to the collaborative efforts of the NGX, the Securities and Exchange Commission (SEC), and the Central Securities Clearing System (CSCS). The market infrastructure was further strengthened by the transition to a T+1 settlement cycle in June.
Strategic Priorities for a Trillion-Dollar Economy
To sustain this momentum, Popoola outlined four key priorities for the NGX Group. These include the privatization and listing of commercially viable government assets, facilitating domestic or dual listings of major Nigerian firms, clarifying capital gains tax treatment for listed securities, and utilizing capital-market instruments for infrastructure financing.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, challenged the NGX and the SEC to target a $1 trillion market capitalization. Oyedele emphasized that the capital market offers a more sustainable wealth-creation path for young Nigerians compared to virtual assets and gambling.
NGX Group Chairman, Alhaji (Dr) Umaru Kwairanga, added that achieving a $1 trillion economy is highly feasible before 2030 under consistent policy reforms. He attributed the market's turnaround to strong leadership and the consistency of ongoing economic reforms.
