Five outstanding developments that defined Nigeria’s capital market in 2022
By Philemon Adedeji
The expectation of Nigerian stock market is to close year 2022 on a positive note, due to the bullish sentiment that sustained an uptrend throughout December.
The stock market performance showed that the Nigerian Exchange, which opened the year at N22.296 trillion in market capitalisation and 42,716.14 in the index, has so far earned a year-to-date gain of about 16.36 per cent.
Positive sentiments had sustained in the local bourse as institutional investors took a position to rebalance their portfolio for the full year of corporate earnings.
During the year, some remarkable events shaped the market. Some of these remarkable feats include the listing of BUA Foods, Geregu Power, the induction of 133 new authorised dealing clerks, the launch of the revised capital market plan and SEC’s approval of NGX technology board listing rules, among others.
These developments contributed to boosting the activities of the market. A total of 18 billion ordinary shares of BUA Foods were listed at N40.00 per share under the Consumer Goods sector of NGX, with the trading symbol, BUAFOODS at the beginning of the year.
The listing of the shares added N720,000,000,000 to the market capitalisation of NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.
Commenting on the listing, Abdul Samad Rabiu, Chairman of BUA Group said, “I am delighted that yet another member of BUA Group has been listed on the NGX. This shows our commitment to national economic growth and support for the food security drive of the nation in alignment with global sustainability goals.
“We appreciate the continued support of our stakeholder’s financial advisers, stock brokers, suppliers, customers, consumers and members of staff. In particular, we cherish our host communities with whom we continue to entrench very strong and mutually beneficial relationships.”
NGX in February inducted a total of 133 Authorised Dealing Clerks from 63 Trading License Holders charging them to uphold the highest level of ethics and responsibility.
Speaking at the ceremony, the Chief Executive Officer of NGX, Mr Temi Popoola, said the NGX was pleased to celebrate the successful Dealing Clerks.
He noted that the induction was evidence of years of dedication, adaptability, and hard work, and symbolises the commitment to uphold the highest ethical standards and to always put the interest of the market first.
Popoola also advised the new clerks to embrace the culture of continuous learning in the fast-paced environment and the ethical standards of brokers.
A total of 2.5 billion ordinary shares of Geregu Power Plc during the year were listed at N100 per share, under the Utility sector and Electric Power Generation sub-sector of NGX, with the trading symbol, GEREGU.
Geregu Power, a leading power generation company (GenCo) in Nigeria, was the first GenCo to be listed on the NGX Main Board, a listing segment for well-established companies with demonstrable records of accomplishments.
The listing of Geregu’s shares added N250 billion to the market capitalisation of NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.
Reacting to the development, the Chairman, of Geregu Power, Mr Femi Otedola, stated that the listing of the company was the actualisation of a vision to bring world-class standards in governance, sustainability, and business processes to the Company and the Nigerian electricity sector.
He added that listing on the Main Board of NGX would ensure that the long-term growth of the company is assured and its benefits would be passed on to their shareholders.
The Securities and Exchange Commission (SEC) on November launched a revised capital market master plan as part of ways to accelerate the growth of the nation’s capital market and increase both domestic and foreign investor participation.
Mr Lamido Yuguda stated that the Master Plan is designed to chart a strategic direction while providing clarity of vision and a robust road map required to facilitate innovation, investment, growth, and expansion of empowering opportunities in Nigeria and beyond.
He said, “Our vision is to be Africa’s most modern, efficient, and internationally competitive market that catalyses Nigeria’s economic growth and development. We believe the plan provides a solid roadmap for achieving this vision as we collaborate with other stakeholders to effectively drive its implementation.”
SEC in December approved the Rules for Listing on NGX Technology Board.
The NGX Technology Board is a specialised platform for technology-based companies to list and raise capital on the Exchange.
Through the Board, NGX aims to encourage investments in indigenous technologically inclined companies and others across Africa, provide greater visibility to these companies and ultimately deepen the Nigerian capital market.
Commenting on the approval of the Rules, the Chief Executive Officer of NGX, Mr Temi Popoola said the approval was a landmark achievement that will position the Exchange as an attractive destination for capital formation by companies within the Technology Sector.
“We are confident that NGX Technology Board will encourage start-ups, both Nigerian-founded and from other African countries, to list on the Exchange as they work towards meeting their financing needs,” he said.
