The Nigerian Exchange Group (NGX) is actively preparing for the listing of Dangote Petrochemicals, a move expected to significantly boost market capitalization and deepen Nigeria’s capital markets.
In a statement on Friday, the Chairman of NGX Group, Dr. Umaru Kwairanga, emphasized that the anticipated listing aligns with President Bola Tinubu’s economic agenda, which aims to expand Nigeria’s Gross Domestic Product (GDP) to $1 trillion by 2030.
According to Kwairanga, key listings in the oil and gas sector, such as the planned sale of a stake in NNPC Ltd. and Dangote Petrochemicals, will play a vital role in achieving this goal.
Capital Market Expansion and Strategic Listings
Speaking on the impact of Dangote Petrochemicals’ listing, Kwairanga highlighted NGX’s commitment to facilitating growth and investment in Nigeria’s financial markets.
“Dangote Refinery has already applied for their petrochemical listing, and we are working to ensure their inclusion before the end of the second quarter,” Kwairanga stated.
Recognizing the strategic importance of a robust capital market, he stressed that enhanced market participation can drive long-term infrastructure development, improve business formalization, and reflect Nigeria’s true economic potential.
However, he noted with concern that Nigeria’s stock market capitalization remains below 20% of its GDP, whereas South Africa’s Johannesburg Stock Exchange exceeds its national GDP.
Strengthening Market Infrastructure
To address these disparities, NGX Group and the Securities and Exchange Commission (SEC) have initiated several measures to improve market transparency and efficiency. These include:
- Dematerialization of share certificates, ensuring seamless electronic transactions.
- Resolution of unpaid dividend backlogs, restoring investor confidence.
- Reduction of clearing time for secondary market transactions to T+2, improving liquidity.
“We are working closely with regulators and stakeholders to enhance market accessibility and attractiveness,” Kwairanga affirmed.
Embracing Digital Innovation and Financial Inclusion
Kwairanga further stressed the role of digital innovation in increasing market participation. He cited the launch of NGX Invest, a digital platform designed to simplify primary market offers and expand financial literacy, particularly among students, youths, and members of the National Youth Service Corps (NYSC).
Additionally, NGX is actively engaging institutional investors such as pension fund administrators and mutual funds, while also developing advanced financial products including exchange-traded funds (ETFs) for diversified investment, derivatives to enhance market sophistication, and ethical investment instruments, catering to specific investor preferences.
Driving Regional Market Integration
Kwairanga highlighted ongoing efforts to integrate African capital markets, enabling investors in Nigeria to trade shares listed on stock exchanges in other African countries such as Ghana.
This cross-border linkage aims to create a more connected, robust financial ecosystem across the continent.
Despite obstacles such as declining disposable income, infrastructural deficits, and global economic uncertainties, Kwairanga expressed confidence in Nigeria’s ability to surmount these challenges and build a broader, deeper, and more sophisticated capital market.
What you should know
The NGX delivered Africa’s second-best return in May 2025, outperforming four other major African stock exchanges to post a solid month-to-date gain of 5.62%.
- This strong performance saw Nigeria’s domestic bourse edge ahead of the Casablanca Stock Exchange, the Johannesburg Stock Exchange, the Egyptian Exchange, and the Ghana Securities Exchange.
- However, the best-performing exchange among the group was the Nairobi Securities Exchange, which powered ahead with an impressive 6.4% return, outpacing Nigeria’s All-Share Index by 0.8 percentage points.
