The Nigerian Exchange Group Plc recorded a boost in revenue to N24bn in the 2024 financial year, driven primarily by the recapitalisation of Nigerian banks and major listings on the exchange, according to a recent research report by CardinalStone.
The report highlighted that the Group’s revenue profile remains well-diversified, underpinned by multiple revenue-generating subsidiaries.
“NGXGROUP’s revenue mix is predominantly composed of investment income, transaction fees, and listing fees, which collectively accounted for approximately 68.7 per cent of total revenue in the financial year ended 2024,” the report read.
Between 2023 and 2024, regulatory directives that increased minimum share capital requirements for commercial banks, combined with high-profile listings such as Aradel Holdings Plc and Transcorp Power Plc, drove a material increase in total market turnover, with a year-on-year mean growth of 56.3 per cent for both years.
These developments also translated into higher transaction and listing fees, with the Group recording a 64 per cent increase in transaction income and a remarkable 397.1 per cent rise in listing fees in FY’24.
“Transaction and listing fees remain critical pillars of our revenue growth, and the recent bank recapitalisation and strategic listings have significantly strengthened our income streams,” the CardinalStone report added.
The report also noted that the share of profit from associates, mainly from equity investments in CSCS and NG Clearing Limited, historically contributed significantly to profitability. However, with NGXGROUP’s core business revenue surging to N16.9 bn in FY’24 from N8.3 bn in FY’23, the contribution of this income line to overall profitability has become less significant.
According to the report, NGXGROUP invested N1.4bn in technology and market development initiatives during the year, aimed at deepening capital market operations and expanding digital offerings. These investments supported major capital raises, including N1.8 tn raised by Nigeria’s banking sector during the period. The report further highlighted that workforce optimisation and operational efficiency programmes contributed to tighter cost management and improved productivity, helping deliver a 157.3 per cent surge in profit before tax.
The research also pointed out that net foreign exchange gains, arising from currency reforms and the devaluation of the naira in 2023 and 2024, added N4 bn to the Group’s earnings. However, with relative currency stability in the first half of 2025, the report noted that FX support to earnings was considerably muted.
Looking ahead, NGXGROUP is targeting total income of N20.8bn in ‘25, slightly below FY’24 levels, reflecting expected moderation in FX gains and a conservative outlook on transaction and listing fees. The Group also aims to achieve an average of five new listings per year, which presents an upside risk to projected revenue.
The report emphasised the Group’s medium-to-long-term growth strategy, including expanding the number of listed companies and product offerings, equities, fixed income, ETFs, derivatives, and innovative instruments such as NDRs, Single Stock Futures, and tokenised securities to attract a wider range of investors. NGXGROUP is also enhancing digital platforms to boost retail participation, with a goal of reaching 10 million new retail investors.
“Strategic investments in technology and cross-border market integration through platforms like PAPSS and African exchange partnerships are expected to expand transaction opportunities and liquidity inflows from beyond Nigeria,” CardinalStone stated.
The research concluded that NGXGROUP is well-positioned for sustained profitability, with a projected five-year revenue CAGR of 12.9 per cent, EBITDA margins averaging 46.6 per cent, and return on equity expected to remain strong at 17.8 per cent.
