Shares of Nigerian Exchange Group (NGX Group) climbed to the ₦100 per share mark last Friday, buoyed by a 43 per cent year-to-date rally that has outperformed the broader market and major benchmarks.
The stock, which debuted at ₦27 following the demutualisation of the Nigerian Stock Exchange (NSE) in 2021, had earlier declined sharply to about ₦17 by 2023, raising concerns among investors over the effectiveness of the demutualisation process and the erosion of shareholder value.
However, analysts attribute the recent rebound to strengthened corporate governance, renewed innovation, and improved execution by the Group’s board and management, which have collectively restored investor confidence in the Exchange.
Executive Vice Chairman of Fund Matrix, Mr Yadinma Onwu, said the recent performance reflects the intrinsic value of the NGX Group and the impact of sustained leadership reforms.
“The Board and management of NGX have demonstrated diligence and introduced innovations that have positioned the Exchange to benefit from ongoing economic reforms and growing investor appetite for naira-denominated assets,” he said.
Onwu added that despite the post-demutualisation decline, he remained optimistic about the Group’s long-term value.
“It is a rare financial market infrastructure, and being a shareholder offers exposure to the growth prospects of Nigeria’s capital market as the country continues to deepen market penetration and financial inclusion,” he noted.
Similarly, Chief Executive Officer of 4Stone Capital, Dr Lizzie Kings-Wali, linked the stock’s strong performance to macroeconomic reforms, regulatory alignment, and improved governance.
She described the NGX Group as a critical utility within Nigeria’s financial system, noting that coordinated reforms by the Securities and Exchange Commission (SEC) and NGX leadership — including the shortening of equity settlement cycles and revised capital requirements for market operators — have boosted investor confidence.
“The shares have rallied from about ₦17 two years ago to ₦100, underscoring the long-term superiority of equity investments for discerning investors able to identify undervalued stocks,” she said, while cautioning that strong leadership remains essential to unlocking corporate potential.
Market observers also credit the NGX Board, chaired by Alhaji Umaru Kwairanga, for driving governance reforms and strengthening stakeholder engagement. Kwairanga, a veteran stockbroker and Fellow of the Chartered Institute of Stockbrokers, is widely recognised for his market consultations and support for executive management.
The Group Managing Director, Mr Temi Popoola, has also been commended for leveraging both local and international experience to drive innovation and disciplined execution over the past two years.
Following demutualisation, major shareholders such as VFD Group Plc and CardinalStone Partners Limited secured board representation, a move analysts say enhanced oversight, improved governance structures, and repositioned the Group for stronger performance.
Analysts maintain that while NGX’s recent rally signals renewed investor confidence, sustaining the momentum will depend on the Board and management’s ability to consolidate value creation and deepen ongoing capital market reforms.
For now, investors appear to be the primary beneficiaries of the Exchange’s renewed strategic direction and governance reforms.
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