NGX Records N12.17trn In FGN Bonds, Corporate Listings

Nigerian Exchange Limited (NGX) has achieved an impressive milestone in 2024, recording listings worth approximately ₦12.17 trillion, split between Federal Government of Nigeria (FGN) Bonds and corporate instruments.

This reflects the government’s strategic reliance on the capital market to raise domestic funds and an active year for corporate listings.

FGN Bonds, issued by the Debt Management Office (DMO) on behalf of the federal government, accounted for ₦5.95 trillion of the total listings on the NGX. Key bond listings included 873,527,020 units of 18.50 percent FGN FEB 2031, valued at ₦873.53 billion, and 621,382,074 units of 19 percent FGN FEB 2034, worth ₦621.38 billion. There was also a supplementary listing of 282,625,193 units of 18.50 percent FGN FEB 2031, valued at ₦282.63 billion.

Corporate listings, which outpaced FGN Bonds, contributed ₦6.2 trillion in value. Among these was Sovereign Trust Insurance Plc’s Rights Issue of ₦1.43 billion in January and Ellah Lakes Plc’s ₦2.19 billion listing. The year also saw significant contributions from Chapel Hill Denham Management Limited, which listed ₦11.58 billion, and Transcorp Power Plc, which added ₦1.8 trillion through 7.5 billion ordinary shares at ₦240 per share in March.

In April, Emerging Africa Asset Management Limited listed ₦5.55 billion, while VFD Group Plc contributed ₦12.5 billion following a Rights Issue. The same month, Royal Exchange Plc added ₦1.56 billion to the Exchange. Notable mid-year listings included AVA Global Asset Managers Limited’s ₦4.08 billion and Cadbury Nigeria Plc’s ₦7.04 billion in May, as well as Multi-Trex Integrated Foods Plc’s ₦2.5 billion in June.

Later in the year, International Breweries Plc’s ₦516.22 billion Rights Issue and Japaul Gold Ventures Plc’s ₦20 billion private placement marked significant highlights in August. October brought landmark entries, including Aradel Holdings Plc with ₦3.05 trillion by introduction, and Nigerian Breweries Plc, which listed ₦548.73 billion through a Rights Issue.

The surge in FGN Bond activities was driven by high yields that attracted Pension Fund Administrators (PFAs) and other institutional investors. Analysts highlighted the appeal of FGN Bonds as low-risk instruments that provide predictable returns, especially during a period of high inflation eroding gains in other capital market segments.

This strong performance by the NGX in 2024 highlights the confidence of both government and corporate players in leveraging the capital market for funding, reinforcing its critical role in Nigeria’s economic growth.