For investors, the 8 years under Buhari were a mixed bag. Trillions of naira gained, and billions of dollars lost.
The NGX’s total market capitalization; an indicator of the size and performance of the capital market, gained N17.18 trillion or 147% during the 8-year period.
However, when adjusted for exchange rate depreciation, the market declined in dollar terms, falling $14.55 billion or 27.5% amidst major listings and delisting during the period.
Also, while domestic portfolio participation increased, foreign investor sentiment weakened, as reflected in the rise in foreign portfolio outflows.
The Buhari administration also implemented several key policy reforms, including the demutualization of the Nigerian Stock Exchange, the launch of the Technology Board, etc.
The Market performance
By May 28, 2023, the NGX ASI closed at 52,973.88 basis points, representing a 54.4% rise from 34,310.37 points as of May 26, 2015.
Market capitalization grew from N11.66 trillion in May 2015 to N28.84 trillion in May 2023, an increase of N17.18 trillion or 147%.
However, using the respective parallel exchange rates of 220/$ in May 2015 and N750/$ in May 2023, the NGX market capitalization in dollar terms declined from $53 billion to $38.45 billion, indicating a loss of $14.55 billion or 27.5%.
Foreign Investor pullback, Domestic Investors step up
During this period, total transactions on the NGX reached N16.45 trillion, with domestic investors accounting for N10.48 trillion, clearly outpacing foreign transactions of N6.03 trillion.
Foreign inflows stood at N2.75 trillion, while outflows totaled N3.085 trillion, indicating negative net foreign investment.
Major listings and delisting during the period.
MTN Nigeria’s listing was one of the biggest milestones of the Buhari era. In 2019, the telecoms giant joined the Nigerian Exchange, listing 20.345 billion shares at N90 each, which added about N1.84 trillion to the market capitalization.
By 2021, MTN deepened local participation through a retail public offer at N169 per share, selling 575 million shares, which marked a significant shift toward broadening domestic investor inclusion.
Around the same time in 2019, Airtel Africa Plc made a major entry with a cross-border secondary listing of over 3.76 billion shares at N363 each, adding N1.36 trillion to the Exchange. This further deepened the market’s liquidity and diversified sectoral representation.
In 2020, BUA Cement Plc came on board, listing 33.86 billion shares at N35, adding N1.18 trillion to the stock market. The company’s market presence expanded rapidly, with its stock price reaching N92 by the end of May 2023.
Two years later, in 2022, the BUA Group returned to the market—this time with BUA Foods, which listed 18 billion shares at N40. By the end of May 2023, BUA Foods’ stock had hit N129.90 per share
In the power sector, Geregu Power Plc made history in October 2022 as the first power generation company to be listed on the Exchange. The company offered 2.5 billion shares at N100 per share, contributing N250 billion to market capitalization.
Altogether, these landmark listings, MTN Nigeria, Airtel Africa, BUA Cement, BUA Foods, and Geregu Power added over N5 trillion to the market capitalization of the NGX.
While President Buhari’s tenure witnessed the listing of some major companies, it also saw a notable wave of delisting.
Between 2015 and 2023, over 25 companies were delisted from the Exchange, either voluntarily or through regulatory action. These exits were driven by various factors, including poor financial performance, restructuring, mergers and acquisitions, low trading activity, and non-compliance with listing rules.
Several well-known firms voluntarily exited the stock market. Notable among them were 11 Plc (formerly Mobil Oil Nigeria), Dangote Flour Mills, Continental Reinsurance, Seven-Up Bottling Company, Newrest ASL Nigeria Plc, etc.
Other companies were compulsorily delisted by the NGX for failing to meet listing obligations. These included Evans Medical, Fortis Microfinance Bank Plc, Nigerian German Chemicals, Jos International Breweries, G. Cappa Plc, etc.
Policy and structural reforms
Buhari’s administration supported several landmark reforms in the capital market space:
- Implementation of the Capital Market Master Plan (2015–2025)
- Demutualization of the Nigerian Stock Exchange, birthing NGX Group Plc
- Legal reforms like the CAMA 2020.
While Nigeria’s macroeconomic environment posed serious challenges currency pressures, inflation, recession, and policy uncertainty, the stock market under Buhari showed resilience.
As usual with anything Buhari, fraudulent data has to be used to pull it down.
How do you calculate the stock market with parallel market rate instead of official rates when foreign investors use official rates?
Secondly, on 29th May 2015, the exchange rate in parallel market was between 260 and 280 naira. In fact I remember someone offering us 280 and my client said “is it even available?”
But to mar Buahri figures, we have to use 220.
What a nation !!!!