The Chief Executive Officer of the Nigerian Exchange Limited (NGX), Mr. Jude Chiemeka, has identified the tokenization of Nigerian assets as a smart way to attract Gen Zs and Millennials to the investment market.
Speaking at the 2024 Investor Summit & Awards Dinner organized by Emerging Africa on December 18, 2024, Mr. Chiemeka explained that younger investors prefer financial products that offer higher returns than traditional assets like stocks and bonds.
To cater to these preferences, Mr. Chiemeka hinted that the NGX is planning to introduce innovative solutions, including a blockchain-like interface to make investing easier, faster, and more appealing.
“Gen Zs and Millennials may not find assets with 40% returns exciting enough. They are more drawn to opportunities that promise double or triple those returns,” he said.
He also highlighted the growing activity in retail trading, with $7 million worth of transactions happening daily on the exchange.
When asked how to improve market liquidity, the CEO pointed to strategies such as efficient market-making, securities lending, and increasing retail participation. These efforts, he noted, aim to bring the NGX closer to the standards of international markets.
He also emphasized the potential of derivatives trading, which helps investors manage risks and could further boost liquidity.
Through these steps, the NGX is focused on modernizing the market and meeting the needs of younger investors while keeping the exchange competitive globally.
Performance of the All-Share Index in 2024
The Nigerian stock market tracked by the All-Share Index has delivered a year-to-date performance of 34.38%, sustaining the bullish momentum carried over from the previous year into 2024.
- January saw a remarkable surge as the index climbed by 35% month-to-date, driven by a market volume of 19 billion shares. It closed the month at 101,154 points, up from its opening value of 74,773 points, marking the best monthly performance of the year so far.
- February brought a slight pullback, with the index dipping to 99,980 points. However, March quickly reversed this decline, pushing the index above 104,000 points.
- In April, the index came under pressure, influenced by recapitalization efforts that impacted investment sentiment in the financial services sector. This led to a decline, with the index dropping to 104,562 points, representing a 6% decrease.
- From April to August, the index experienced a retracement, closing at 96,580 points by August.
- A turnaround began in September, as the index found support and began a steady recovery, reaching the 100,000-barrier by the third week of December.
As of December 19, the All-Share Index stands strong, opening above 100,400 points, signaling resilience and renewed buying interest as the year draws to a close.
About Emerging Africa
Emerging Africa Group is a company with a focus on Environmental, Social, and Governance (ESG) principles.
- The group specializes in advising, arranging, and facilitating investment and financing transactions. Its partners include public and private sector issuers, governments at various levels, development finance institutions, local and international banks, and high-net-worth individuals.
- Emerging Africa provides investment services tailored to high-net-worth individuals, businesses, and governments, working to support economic development and sustainable growth across the continent.
The company also organizes events like the Investor Summit & Awards Dinner to encourage collaboration and discussions on investment opportunities in Africa.
