Goddy Egene  writes that the  growth recorded by the Nigerian Stock Exchange Group for the first half of 2025, does not only reflect  a resurgence in  capital market activity but also  its  relevance  in Nigeria’s growth story

A striking narrative is emerging across Nigeria’s financial markets as the country navigates the midpoint of 2025. Investor sentiment is shifting, capital flows are strengthening, and a more confident macroeconomic posture is taking shape. At the centre of this momentum sits Nigerian Exchange Group (NGX Group), which recorded a strong first half (H1) performance that reflects not only a resurgence in market activity but also the deepening relevance of capital markets in Nigeria’s growth story.

Amid shifting global trends and a domestic landscape defined by fiscal and structural reforms, NGX Group’s H1 2025 performance underscores its growing role as a bellwether for market confidence and strategic capital formation in Africa’s most populous nation.
At the close of the first half of 2025, Nigerian Exchange Group is not only posting solid financial results but also sending a strong signal that Nigeria’s capital market is becoming more robust, innovative, and future-ready under its current leadership. The Group’s recently released H1 2025 financial report paints a picture of strategic execution, sustained growth, and forward-looking reform, all while aligning with global standards in transparency, investor access, and financial inclusion.

At the helm of this performance is Group Managing Director/Chief Executive Officer, Mr. Temi Popoola, whose tenure continues to usher in a new era for the Group and the broader Nigerian capital market. Under his leadership, NGX Group is fast becoming a hub for investor confidence, innovation, and financial transformation, and the numbers from the first half of the year reinforce that trajectory.

NGX Group recorded N9.86 billion in revenue for H1 2025, representing a 32 per cent increase from N7.48 billion in the corresponding period of 2024. This revenue growth underscores the group’s ability to tap into new opportunities and strengthen its revenue-generating units, including its subsidiaries.

Perhaps even more telling is the group’s profit after tax (PAT), which almost doubled to N4.22 billion, a 97 per cent  increase from N2.14 billion recorded in H1 2024. This translates to a PAT margin of 43 per cent, up from 29 per cent in the previous year, reflecting a combination of strong topline growth, operational efficiency, and improved cost discipline.

Operating expenses saw a 25 per cent increase from N4.56 billion in H1 2024 to N5.70 billion in H1 2025, a controlled and strategic rise given the group’s operational expansion and the rate of revenue growth. This indicates the group’s approach to scaling operations while maintaining profitability.

The balance sheet remains strong as financial momentum builds on innovations introduced in the previous year, most notably, the launch of NGX Invest, an e-offering platform designed to democratise access to investments in the primary market. NGX Invest was conceived to break down the barriers traditionally associated with public offers and rights issues by allowing retail investors to subscribe for securities directly through their smart devices. The platform leverages partnerships with market operators, financial institutions, banks, and regulators, making it easier than ever for individuals to participate in public market transactions anytime, anywhere.

Its early success has already been proven. Since its launch in July 2024, NGX Invest has supported offerings totaling over N2 trillion, primarily through high-profile capital raises tied to the recapitalization efforts in Nigeria’s banking sector. Notably, the Central Bank of Nigeria (CBN) recently confirmed that eight banks have already met their recapitalization targets, an achievement that underscores the platform’s critical role in mobilising capital swiftly and efficiently.

This milestone has not only facilitated a broader investor base but has also streamlined the capital-raising process for issuers, signaling a major leap in market efficiency and accessibility. In the broader context of the Group’s operations, NGX Invest represents a blueprint for the future of capital formation in Nigeria, one that is inclusive, digital, and responsive to both local and global investment appetites.

Momentum has also returned to Nigeria’s equities market, with foreign portfolio investor participation rising significantly to N1.14 trillion, accounting for 27.08 per cent of total transactions, compared to N540.48 billion (20.75 per cent) in the same period last year. This resurgence in foreign interest reflects renewed confidence in the country’s economic direction and a maturing capital market ecosystem.

Head of Macro Strategy at FIM Partners and author of Fastest Billion,  Charlie Robertson, captured this sentiment succinctly, noting that Nigerian equities, up 22 per cent  in US dollar terms year-to-date, are among Africa’s top performers in 2025, alongside markets like Egypt, Kenya, and Morocco. His remarks highlight both Nigeria’s improved macroeconomic posture and the favourable global conditions supporting emerging markets.

In the first half of 2025, Nigeria’s economy showed further signs of resilience. GDP growth rebounded to 3.7 per cent, inflation moderated to 22.22 per cent in June, and foreign exchange pressures eased on the back of stabilising oil output and regulatory measures. While these trends remain uneven, they are helping to lay a stronger foundation for investment and economic stability, with the capital market serving as a visible indicator of reform progress.

Within this evolving environment, NGX Group facilitated over N4.63 trillion in capital raised by corporates and governments across diverse asset classes. As of June 30, 2025, total market capitalisation of NGX-listed instruments, including equities, fixed income, and ETFs, stood at N126.73 trillion, a 16 per cent increase from N112.60 trillion at the start of the year. Equities led the growth, rising from N62.76 trillion to N75.95 trillion during the period, while fixed income instruments remained steady at N50.56 trillion. Notably, ETFs gained fresh investor attention, with total market value reaching N25.79 billion, driven by increasing retail activity and product diversification.

Popoola attributed this performance to a strategic focus on liquidity, investor trust, and strong collaboration with the Securities and Exchange Commission(SEC).
“We have worked closely with SEC to promote transparency, strengthen investor protections, and accelerate innovation in listings and product development. Our goal is to create an inclusive, globally competitive capital market,” he said.

Sustainability also remains a key pillar of the group’s agenda. In partnership with DEG Impulse gGmbH, the launch of the NGX Net-Zero Programme (N-Zero) signaled a deepened commitment to environmental responsibility and climate action. The initiative is designed to equip companies with tools to measure, disclose, and reduce their carbon emissions, positioning NGX Group as a pioneer in green finance and a leading enabler of ESG-focused investment in Nigeria. This strategic direction aligns with Nigeria’s broader ambitions to engage meaningfully in global carbon markets and transition to a more climate-resilient economy.

NGX Group’s success in the first half of the year is not happening in isolation. It is the result of deliberate efforts to digitise market access, expand retail participation, attract strategic listings, and embed sustainability at the core of market development.

With the second half of 2025 underway, the group’s focus is firmly set on deepening market penetration, strengthening pan-African linkages, driving innovation through technology, and advancing sustainability as a strategic imperative. This forward-looking strategy is designed to consolidate current gains while building a capital market that is agile, inclusive, and globally integrated.

As Popoola noted:“Our commitment is to build a more globally competitive exchange ecosystem, one that is inclusive, transparent, and capable of powering the continent’s next wave of development through efficient capital formation.” According to stakeholders, these results are more than numbers; they are a reflection of the market’s growing maturity, the group’s stewardship of financial infrastructure, and a renewed belief in the potential of Nigeria’s economic future.

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