NGX pledges to work with FG to improve Nigeria’s profile

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Lagos, July 27, 2023 – The board and management of Nigerian Exchange Group Plc (NGX Group) have pledged to work with the Federal government to improve the country’s credit profile.

Umaru Kwairanga, the Group Chairman, made the pledge during the 62nd Annual General Meeting (AGM) of the group in Lagos on Friday.

He lauded President Tinubu for the various reforms that have resulted in the impressive performance of the market.

“The capital market community is excited by the new government and the steps it has so far taken with respect to the economy as reflected in the tremendous growth in our market indicators.

“As a group, we are committed to working with the government to stimulate further growth in the economy, address higher capital costs, as this will go a long way to enhance Nigeria’s credit profile, and create a favourable environment for both domestic and foreign investors,” he said.

Kwairanga said the Federal government needed to make more friendly market policies to engender growth as consistent and faithful implementation of market policies would help businesses to thrive.

He said the group was hopeful that the planned Initial Public Offer (IPO) of the NNPC Limited would be fast-tracked by the Tinubu’s administration.

On the group’s performance,  Kwairanga said that NGX Group demonstrated resilience in 2022, achieving a 10.3 percent increase in gross earnings to N7.5 billion, despite a challenging economic environment.

The Group’s total revenue grew primarily due to a 6.8 percent increase in revenue to N6.2 billion and a 30.1 percent increase in other incomes to N1.3 billion.

The growth in its revenue was further bolstered by a 51.2 percent increase in treasury investment income and a nine percent increase in transaction fees.

However, its total expenses rose by 35.5 percent to N8.8 billion, primarily due to interest costs on borrowed funds used for strategic acquisitions.

“Achieving an efficient capital mix and broadening our access to capital remain fundamental to our mission.

“The Board will continue to assist the Management team in addressing long-term risks, strengthening the global NGX brand, and assessing progress toward our goal of being Africa’s preferred exchange hub,” Kwairanga said.

Oscar N. Onyema, the Group Chief Executive Officer, said the performance reflected NGX Group’s commitment towards driving growth in Nigeria and Africa’s capital markets.

Onyema said the group was proud to have generated multiple income streams that enabled it to overcome economic headwinds.

 He expressed optimism on the opportunities and challenges ahead and emphasized the group’s commitment to leveraging its strengths and expertise to drive growth and value creation in Nigeria and other financial markets Africa.

“NGX Group will continue supporting its operating subsidiaries, associates, and investee companies to deliver sustainable value creation for its shareholders.

“We will look to enhance our performance by continuously striving to optimise operations, increase revenue streams and expand our market reach.

“We are confident that these measures will enable us to build on the positive momentum we have achieved in recent years and drive growth in 2023 and beyond,” he said. (GBN)

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