NGX Group Posts ₦15.6bn Profit as Capital Markets Enter Expansion Phase

The Nigerian Exchange Group (NGX Group) has delivered a ₦15.6 billion profit before tax for FY2025 — a result that goes beyond headline earnings. It signals resilience, balance sheet repair, and the early consolidation of a stronger post-reform capital market ecosystem.

This is just as Nigeria’s capital markets are entering a structural inflection point. In an environment defined by macroeconomic tightening, regulatory recalibration and investor caution, the performance of the exchange itself has become a leading indicator of financial system confidence.

The implications stretch well beyond shareholder returns. They touch liquidity formation, listing momentum, regulatory compliance and Nigeria’s broader ambition to deepen domestic capital pools.

Context: A Market Rebuilding Its Foundations

The past three years have reshaped Nigeria’s financial architecture:

• Foreign exchange unification
• Fiscal consolidation efforts
• Tighter regulatory capital requirements from the Securities and Exchange Commission (SEC)
• Heightened scrutiny on financial system solvency

Capital markets thrive on confidence. But confidence rests on infrastructure strength — including the exchange operator’s own financial health.

NGX Group’s FY2025 results must therefore be viewed as institutional reinforcement within a reforming macro framework.

Financial Performance: Scale, Efficiency and Deleveraging

For the year ended 31 December 2025, NGX Group recorded:

• Core revenue growth of 36% to ₦22.9 billion
• Operating profit up 44.4% to ₦11.8 billion
• Profit before tax of ₦15.6 billion (from ₦13.6 billion in 2024)
• Earnings per share of ₦4.75
• 67% reduction in finance costs following deleveraging

This is not simply cyclical recovery.

The 67% drop in finance costs reflects disciplined balance sheet restructuring — a strategic shift from leverage dependence toward retained earnings growth and solvency strengthening.

Revenue expansion was driven by higher investor participation, improved market activity, and deeper penetration across core segments.

In capital markets, operating leverage matters. When activity rises, margins expand disproportionately. NGX’s improved operating efficiency suggests stronger earnings elasticity as market volumes grow.

Balance Sheet Strength: Preparing for Regulatory Evolution

As at year-end 2025:

• Total assets rose to ₦71.0 billion
• Shareholders’ equity strengthened to ₦55.2 billion
• Debt-to-equity metrics improved materially

This capital robustness is especially relevant given evolving SEC capital thresholds. Regulatory tightening globally has increased minimum capital requirements for market operators.

A fortified balance sheet allows NGX Group to:

• Meet enhanced capital standards seamlessly
• Invest in market infrastructure
• Expand liquidity platforms
• Accelerate product innovation

In emerging markets, exchange operators must simultaneously regulate, innovate and scale. Financial resilience is a prerequisite.

Shareholder Returns: Dividend Growth and Bonus Issue

The Board declared:

• Final dividend of ₦2.00 per share
• Total FY2025 dividend of ₦3.00 per share (50% YoY increase)
• 1-for-3 bonus share issue

The combined dividend uplift and bonus issuance reflect capital confidence without eroding growth flexibility.

This is a calibrated capital allocation strategy — rewarding investors while preserving expansion capacity.

Leadership Perspective: Institutional Confidence

Commenting on the results, Alhaji (Dr.) Umaru Kwairanga, Group Chairman, NGX Group, stated:

“Strong revenue growth, improved operating margins and a strengthened balance sheet reinforce our commitment to delivering sustainable long-term shareholder value.”

His remarks emphasised investor confidence and a pipeline of new listings expected to deepen market breadth.

Similarly, Mr Temi Popoola, Group Managing Director/CEO, NGX Group, noted:

“Our 36% core revenue growth, improved operating efficiency and successful deleveraging have strengthened our capital base and financial flexibility.”

Popoola also highlighted regulatory evolution, particularly revised SEC capital requirements, framing NGX’s financial position as future-proof.

Leadership messaging is clear: the Group sees 2025 not as peak performance, but as platform performance.

Core Analysis: What Is Driving the Momentum?

Three structural drivers underpin NGX’s earnings surge:

1️⃣ Renewed Investor Activity

FX market clarity and yield recalibration have drawn institutional and retail participation back into equities and fixed income instruments.

2️⃣ Listing Pipeline Expansion

A broader IPO and secondary listing pipeline increases fee-based revenue streams.

3️⃣ Operating Efficiency and Cost Discipline

Reduced finance costs and expense control amplified profit conversion.

The real question is sustainability.

Capital markets are inherently cyclical. The durability of this performance depends on continued macro stability, listing momentum and regulatory coherence.

Implications for Nigeria’s Financial Ecosystem

For policymakers:

• A stronger exchange enhances domestic capital mobilisation.
• Reduced reliance on external borrowing becomes feasible.

For corporates:

• Improved liquidity deepens financing alternatives beyond bank lending.

For investors:

• Dividend growth signals earnings durability.
• Bonus issue increases float and trading activity.

For regulators:

• Institutional solvency strengthens systemic risk buffers.

In short, exchange profitability strengthens financial intermediation capacity across the economy.

Risks and Trade-Offs

Despite the positive trajectory, risks remain:

• Equity market volatility from global capital flows
• FX shocks affecting foreign portfolio participation
• Regulatory tightening impacting transaction volumes
• Slower-than-expected listing pipeline execution

Exchange operators must constantly balance innovation investment with capital preservation.

Forward Outlook: Three Scenarios

1️⃣ Expansion Cycle

Sustained listings, digital product innovation and liquidity expansion accelerate earnings growth.

2️⃣ Stabilisation Phase

Market volumes plateau but operational efficiency maintains profitability.

3️⃣ Volatility Shock

External macro shocks dampen activity, compressing transaction-driven revenues.

NGX’s deleveraged structure positions it more defensively than in previous cycles.

BRANDECONOMY Insight

Exchange operators rarely capture public attention — yet they are the infrastructure backbone of financial capitalism.

NGX Group’s FY2025 performance suggests Nigeria’s capital markets are transitioning from recovery to structural consolidation.

Profit growth is important. Balance sheet strength is critical. But institutional credibility is decisive.

If listing momentum deepens and regulatory clarity persists, NGX could become the central node of Nigeria’s domestic capital formation engine — reducing sovereign borrowing pressure and supporting private-sector expansion.

The numbers reflect earnings.
The signal reflects system strength.