Shareholders advocate strategic reforms to sustain listing momentum

To sustain the momentum of new listings achieved in 2024, shareholders have stressed the need for the government to adopt strategic initiatives that promote economic growth and infrastructure funding.

The investors, while speaking on how to sustain the momentum of the renewed interest in listing in 2024, which brought over N4 trillion into the market, said there is a need for regulators to enhance the attractiveness of the Nigerian Exchange Limited (NGX) by ensuring that listed companies derive benefits such as increased access to long-term capital, corporate visibility and investors’ confidence.

According to them, addressing the issues would position the Nigerian Exchange Limited (NGX) as a preferred option for businesses seeking growth opportunities.

The shareholders stated categorically that business owners will hesitate to list their companies if they can secure value elsewhere at a reasonable cost without exposing themselves to the stringent regulatory and shareholder scrutiny that comes with being listed.

President of the Independent Shareholders Association of Nigeria, Moses Igbrude said the government should prioritise the implementation of policies that encourage public-private partnerships, especially in infrastructure development, noting that leveraging the capital market to fund large-scale projects could boost economic activity and attract foreign investment.

He pointed out that the success of the 2024 financial year, which propelled a significant uptick in listings, demonstrates the potential of the Nigerian stock market as a catalyst for economic transformation.

He argued that active collaboration among the government, market regulators, and private stakeholders will be crucial in replicating and surpassing this achievement this year.

“A company will only go public if the owners perceive there are intrinsic values to be derived upon listing on the Exchange. These values are categorised under access to capital raising, increased visibility and liquidity for shareholders among others.

“So, the management of the NGX should focus more on how to enhance and deliver these qualities and deliverables to attract more companies at minimum cost. Government on the other hand should not take capital market issues with levity, rather step up easy of doing business to attract more investors to the market,” he said.

The NGX experienced a transformative year in 2024, emerging as one of the best-performing exchanges. The milestone was largely driven by the introduction of landmark listings that attracted significant investors and boosted market activity.

Key among the listings were Aradel Holdings, which added a massive N3 trillion in market capitalisation, Transcorp Power, contributing N1.8 trillion and further cementing Nigeria’s role as a key player in the power and energy sector in Africa and Haldene McCall’s N3 billion listing, underscoring the diversity of opportunities on the NGX.

The listings collectively elevated the NGX’s total market capitalisation and trading volumes to new heights, creating a surge in investors’ confidence. The successful integration of the high-value assets not only boosted liquidity but also showcased the exchange’s capacity to handle large-scale transactions, attracting both local and international investors.

President of the New Dimension Shareholders Association of Nigeria, Patrick Ajudua, said there is a need for continued innovation within the NGX through the introduction of more financial instruments, improved technology for trading and greater transparency in regulatory oversight.

According to him, the measures will not only deepen market participation but also drive sustainable growth.

He pointed out that improved regulatory oversight and a conducive business environment are expected to drive a stronger capital market rally in 2025.

Therefore, he urged the regulators to ensure consistent enforcement of market rules and enhanced transparency to bolster investor confidence and attract new listings in the market.

He added that these factors, coupled with strategic reforms, are likely to create a vibrant ecosystem that would sustain growth and increased activity in the market this year.