As revealed in its 2024 audited financial statements, the financial performance was driven by strategic cost optimisation, revenue growth, and increased market participation.

The Group’s gross earnings surged by 103.2%, reaching N24 billion, up from N11.8 billion in 2023. This resulted from increases across key revenue streams:

• Transaction fees: Up 64% to N7.9 billion (from N4.8 billion)
• Listing fees: Skyrocketed 397.1% to N5.4 billion (from N1.1 billion)
• Technology-related income: Increased by 105%
• Other fees: Rose 174.8% to N273.3 million (from N99.4 million)
• Market data revenue: Grew 100.5%, contributing to a 102.6% rise in other income, now accounting for 29.6% of total earnings

In addition, NGX Group recorded:

• Profit after tax:9 billion, up 88.9% (from N5.2 billion)
• Operating profit:1 billion, surging 1,791% (from N433 million)
• Earnings per share: 50, up from 2.43
• Total assets: N68 billion, reflecting a 13.7% increase (from N59.8 billion)
• Liabilities: Reduced by 4.34% to N19.4 billion (from N20.3 billion)

Dividend Declaration and Shareholder Returns

NGX Group has declared a dividend of N2 per ordinary share (0.50 kobo each), subject to withholding tax and shareholder approval.

The dividend will be paid to shareholders whose names appear in the Register of Members as of Thursday, March 13, 2025.

Speaking on the performance, Alhaji Dr Umaru Kwairanga, group chairman, said:

“These results mark a pivotal moment in NGX Group’s post-demutualisation journey, reinforcing investor confidence in our long-term vision. The approval of a record N4.4 billion dividend underscores our commitment to rewarding shareholders while positioning NGX Group as a key driver of capital market development. As we continue to invest in market infrastructure and innovation, we remain focused on creating sustainable value for all stakeholders.”

Mr Temi Popoola, managing director/CEO, added:

“NGX Group’s remarkable 2024 performance reflects our strategic focus on execution, operational excellence, and innovation. The 157.3% increase in profit before tax underscores the strength of our execution strategy and the dedication of our team. By leveraging technology, expanding market data solutions, and strengthening our partnerships, we have built a more resilient and diversified business model that positions us for sustained growth.”

NGX Group seeks to scale up its drive for capital market development in Nigeria and across Africa, leveraging a strong capital base, diversified revenue streams, and a focus on innovation.

The post NGX Group to Pay Dividend as Profit Before Tax Hits N13.6Bn in 2024 appeared first on Tech | Business | Economy.

More than 40 staff members of NGX Group were affected, with top shots in the organization asked to go.

The overhaul was led by PricewaterhouseCoopers (PwC), a multinational professional services firm.

The PwC carried out a staff audit and made recommendations to Mr Temi Popoola, the group managing director/chief executive officer of Nigerian Exchange Group (NGX), who implemented the downsizing, a source said.

The affected staff members, according to sources, include regulatory officers, compliance managers, audit managers, the investment team, the chief finance officer, and the general counsel of NGX, among others.

According to source, “Mr Popoola knew that he was in a position to be the next Group CEO when Oscar Onyema (former NGX Group CEO) left. So, as soon as he assumed office, he contracted PwC to overhaul NGX Group,” an affected senior staff member said

“However, several times, PwC asked about job responsibilities from the Human Resources (HR) Department. In preparation for the AGM, as Holdco managers, we were in charge of organizing the AGM and we did a lot of leg work to ensure that we got enough proxy shareholders so as to secure enough percentage required to rectify Popoola as GMD.”

The ex-staffer said after the AGM, same day around 5 pm, a virtual meeting was held with all staff members of the group, where the Group Managing Director said that he had got feedback from PwC and that he was going to scrap offices and allow staff members that were no longer relevant to the organization to go.

Mr Popoola noted that he was going to send termination letters to affected staff the same day and have their emails blocked for access, the ex-staff member said.

“He didn’t give the affected people the opportunity to ask questions. He said consultants did a transparent job but he did not show the results of the review to anybody,” another affected ex-staff member said.

“We didn’t know the criteria that were used to come to the conclusion of the sacks. That aside, we have a high staff attrition rate, not to forget that the payout to the board level is extremely high.”

Another affected staff member said the decision of the NGX to downsize was greeted with pessimism, noting that there were no clear criteria for the dismissal.

Currently, the affected staff members are demanding reinstatement, emphasizing their contributions and lack of justification for their terminations.

Recall that on April 8, the Central Bank of Nigeria (CBN) sacked five to eight directors. Those affected were in Trade and Exchange Department, Securities Department, Development Finance Department, as well as Purchasing and Support Services Department, including the Public Affairs Department.

The regulator equally retrenched 32 staff members the same day, striking fear in the staff. So far, the apex bank has sacked 117 staff members across its 27 departments, multiple sources said.

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This move leads the retirement of the current GMD, Oscar Onyema, slated for March 31, 2024.

The Chairman of NGX Group, Umaru Kwairanga, commended the effective succession planning, expressing gratitude to Onyema for his leadership. Onyema led the demutualization and restructuring of The Nigerian Stock Exchange to NGX Group Plc and orchestrated its listing on the main board of NGX.

In his comments, outgoing GMD/CEO Oscar Onyema commended the accomplishments achieved since 2011 and noted confidence in Popoola’s ability to continue the legacy and growth of NGX Group. 

Temi Popoola, the current CEO of NGX, acknowledged the deep sense of responsibility that comes with the role and pledged to build on the foundation laid by Onyema.

The transition involves Jude Chiemeka, Executive Director of Capital Markets at NGX, stepping into the role of Acting CEO of Nigerian Exchange Limited from January 1, 2024.

Currently the CEO of NGX and a member of NGX Group Executive Committee, Popoola began his career as a portfolio manager in London, focusing on African energy markets. He later served as a senior equity derivatives trader with Bank of America Securities in New York, contributing to firm profitability by providing derivative solutions to U.S. corporations and family offices. 

Prior to his current role, Temi Popoola served as the Managing Director and CEO for West Africa at Renaissance Capital (Rencap). 

He holds a first-class degree in Chemical Engineering from the University of Lagos and a Master’s degree from the Massachusetts Institute of Technology. Additionally, he is a Chartered Financial Analyst and a Chartered Stockbroker.

Jude Chiemeka, the current Executive Director of Capital Markets at NGX, will assume the role of Acting CEO of Nigerian Exchange Limited from January 1, 2024. Chiemeka brings nearly 30 years of experience in Securities Trading and Asset Management across African markets to this role. Before joining NGX, he served as the MD/CEO of United Capital Securities, a subsidiary of United Capital Plc listed on NGX.

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The Offer was implemented by way of a bookbuild to qualified institutional investors and a fixed price offer to retail investors. 

Key Points 

• Offer was 139.47% oversubscribed, activating the allocation of an additional 86.25 million shares
• Retail shareholders receive full allotment despite over-subscription
• Institutional shareholders under the Bookbuild were pro-rated as a result of the over-subscription
• 114,938 new CSCS accounts were created representing new market participants
• Approximately 76% of successful applicants via digital platform are women, and 85% are under age 40

The Series 1 offer for sale of 575 million shares held by the MTN Group in MTN Nigeria (the Offer) to Nigerian investors has been successfully completed.

The Offer was implemented by way of a bookbuild to qualified institutional investors and a fixed price offer to retail investors.

The Offer was oversubscribed with valid applications for a total of 801.97 million units, leading to the activation of the approved 15% over-subscription clause of an additional 86.25 million MTN Nigeria shares. In all, 661.25 million MTN Nigeria shares were allotted.

A total of 126,720 retail investors submitted valid applications and received full allotment; and institutional investors including pension funds, insurance companies, asset managers, corporates, and foreign portfolio investors that participated in the bookbuild were allotted 72.09% of their applications.

This includes Nigerian pension funds representing approximately 6.5 million Nigerian contributors.

Following the successful completion of the Offer, MTN Group’s shareholding in MTN Nigeria reduced by 3.25 percentage points, from 78.83% to 75.58%.

In line with the innovative incentive structure of 1 free share for every 20 purchased, subject to a maximum of 250 free shares per investor, an additional 4.28 million MTN Nigeria shares will be allotted to qualifying investors who hold the shares allotted to them for 12 months till 31 January 2023.

MTN Group adopted a unique structure in this offering by determining a fixed price of N169 per share for the retail offer through a Bookbuild to Qualified Investors that was completed on 26 November 2021.

The fixed price offer to Retail Investors was at a discount of 11% to the closing price of MTN Nigeria stock on the day the Bookbuild was completed.

The Offer commenced on 1 December 2021 and was completed on 14 December 2021. Nigerian investors across the country supported the Offer through multiple channels – Receiving Agents, Issuing Houses and PrimaryOffer (a digital application platform).

The Offer is a landmark transaction and a true reflection of Nigerian investor confidence in MTN Nigeria. It marks the first time a digital application platform was used to democratize investing in a public offer and maximize investor participation across the country.

More than 89% of retail offer subscribers applied through the PrimaryOffer platform (mobile and web), and 114,938 new Central Securities Clearing System (CSCS) accounts were opened by first-time investors.

Ralph Mupita, the President/CEO of MTN Group, has this to say: “We are pleased that this Offer has given so many Nigerians the opportunity to become owners of MTN Nigeria. With over 6.6 million Nigerians directly or indirectly becoming shareholders in MTN Nigeria, the objective of broadening the shareholder base, and creating shared value has been achieved. We are proud that our Offer was the first Nigerian public offer to use the digital application platform, PrimaryOffer, which enabled wider investor participation across Nigeria. We thank the Nigerian authorities for their support of this Offer. We remain committed to playing our humble role in driving digital and financial inclusion in Nigeria over the medium.”

Commenting on the Offer, Karl Toriola, CEO of MTN Nigeria said: “We are delighted to welcome so many new shareholders to the MTN family, up 11.6 times from the number before the offer.  It has been inspiring to see so many Nigerians, many of whom are young, acquire shares for the first time, and use a digital platform to do so. This is the beginning of a journey to broaden our shareholding and there will be more opportunities to participate. 

We are pleased with the level of digital innovation we championed with this offer with the active collaboration of our lead issuing house and the various regulatory bodies. Deepening retail participation in Nigeria’s capital markets is a process, and we are off to a great start, demonstrating the role digital platforms can play in expanding access. I am particularly pleased that we completed this transaction in an accelerated time frame ensuring new shareholders can realize value almost immediately through participation in our 2021 full-year dividend.

 I would specifically like to thank the Honorable Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim (Pantami), the Nigerian Communications Commission and the wider Federal Government for the opportunity to execute this Offer. I thank the Securities and Exchange Commission, the Nigerian Exchange Limited, the CSCS, and all the parties involved for their support in delivering this ambitious Offer structure. I also appreciate our staff who worked tirelessly with our advisers on this project. Most of all I would like to thank our new shareholders for having confidence in us and in our future. We are delighted to have you on board for this journey to building a digital future together.”

Bolaji Balogun, CEO of Chapel Hill Denham, the Lead Issuing House said: “Chapel Hill Denham is honoured to have worked with MTN to complete Nigeria’s first digital and predominantly green offering. I wish to thank the SEC, the NGX, the CSCS, all the professional firms and other stakeholders, for delivering a big win for Nigeria’s capital markets in enabling the adoption of PrimaryOffer and this transaction marks a new and exciting future. Over 90% of subscribers to the Offer were first time participants in the capital markets and MTN Nigeria’s strong investment case made this possible.”

Nigerian Exchange Limited (NGX) CEO, Temi Popoola, CFA said: “NGX is proud to have worked with MTN Nigeria, Chapel Hill Denham and other parties to the transaction in advancing Nigeria’s capital market through the adoption of forward-looking technology. In the NGX era, we are resolute in our commitment to democratize finance in Nigeria in order to ensure every type of investor has access to public markets where they can invest in companies they believe in and reap value. With the digitised MTN Nigeria offering, we have made a tremendous stride in our plans for a full digital transformation of the Nigerian capital markets and we look forward to building on this.”

Central Securities Clearing System Plc CEO, Haruna Jalo-Waziri said: “We are excited to be part of the innovation brought by the Offer, which afforded the successful launch of PrimaryOffer digital application platform. This further buttresses the necessity for digital transformation, allowing market access for all categories of investors, including institutional and retail investors within and outside of the country. At CSCS, digital transformation has been the core of our strategic direction. We will continue to collaborate with our participants, issuers and other stakeholders to efficiently and effectively ease market access with innovative solutions through the investment cycle.”

Chapel Hill Denham Advisory Limited acted as Lead Issuing House and Bookrunner for the Offering, and Rand Merchant Bank Nigeria Limited, Renaissance Securities (Nigeria) Limited, Stanbic IBTC Capital Limited and Vetiva Capital Management Limited acted as Joint Issuing Houses and Joint Bookrunner.

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