Nigerian Exchange Group

Last updated
Nigerian Stock Exchange
Nigerian Exchange Group logo.svg
Type Stock exchange
Location Lagos, Lagos State, Nigeria
Founded1961
OwnerNigerian Exchange Group Plc.
Key people Temi Popoola
Currency Naira (₦)
No. of listings328
Market cap ₦28.26 trillion (January 9, 2020)
IndicesNSE All-Share
NSE Premium
NSE 30
NSE 50
NSE Corporate Governance Index
NSE Banking
NSE Consumer Goods
Website ngxgroup.com//

The Nigerian Stock Exchange (NSE), now Nigerian Exchange Group, is a Nigerian stock exchange founded in 1961 in Lagos. As of November 2019, it has a total of 161 listed companies, with 8 domestic companies on the premium board, 144 companies on the mainboard, and 4 [1] on the Alternative Securities Market (ASeM) board. In the Fixed Income market, the NSE has 84 FGN bonds, 21 state bonds, 27 corporate bonds, 1 supranational bond, and 53 memorandum listings. [2]

Contents

Mission

The NSE mission is to enable businesses and investors to have reliable access to capital and provide secure saving systems and structure for effective and efficient business operations. [3]

History

The Nigerian Stock Exchange was founded as the Lagos Stock Exchange, [4] on September 15, 1960. The Lagos Stock Exchange is the oldest existing stock exchange in West Africa. [5] There were seven subscribers to the Exchange's Memorandum of Association: R.S.V. Scott, representing C.T. Bowring and Co. Nigeria Ltd.; Chief Theophilus Adebayo Doherty; John Holt Ltd; Investment Company of Nig. Ltd.(ICON); Sir. Odumegwu Ojukwu; Chief Akintola Williams; and Alhaji Shehu Bukar.

Operations began officially on August 25, 1961, with 19 securities listed for trading. However, informal operations had commenced earlier in June 1961. Operations were initially conducted inside the Central Bank building with four firms as market dealers: Inlaks, John Holt, C.T. Bowring, and ICON (Investment Company of Nigeria). [6] The volume for August 1961, was about 80,500 pounds and it rose to about 250,000 pounds in September of the same year with the bulk of the investments in government securities. [7] In December 1977 it became known as The Nigerian Stock Exchange, with branches established in some of the major commercial cities of the country.

In 2021, the demutualisation of the NSE was initiated which led to the emergence of the Nigerian Exchange Group (NGX Group) Plc and three subsidiaries – Nigerian Exchange (NGX) Limited, NGX Regulation (NGX RegCo) Limited, and NGX Real Estate (NGX RelCo) Limited. [8] Tinuade Awe was appointed the CEO, "NGX RegCo Limited" while Temi Popoola was appointed the CEO of the Nigerian Exchange (NGX) Limited. [9] [10]

Operations

The Nigerian Stock Exchange has been operating an Automated Trading System (ATS) since April 27, 1999, with dealers trading through a computer network. In 2013, the NSE launched its next-generation trading platform, X-Gen, intended to enable electronic trading for the retail and institutional segments. Trading on The Exchange starts at 9.30 a.m. and closes at 2.30 p.m. every Monday - Friday. Market prices, along with an All-Share Index, NSE 30, and Sector Indices, are published daily in The Stock Exchange Daily Official List, The Nigerian Stock Exchange CAPNET (an intranet facility), newspapers, and on the stock market page of the Reuters Electronic Contributor System. Historical price and performance data are also posted on the NSE website.

In order to encourage foreign investment into Nigeria, the government has abolished legislation preventing the flow of foreign capital into the country. This has allowed foreign brokers to enlist as dealers on the Nigerian Stock Exchange, and investors of any nationality are free to invest. Nigerian companies are also allowed multiple and cross-border listings on foreign markets.

In a bid to promote transparency and trust in the capital market, the NSE reconstituted the Investors' Protection Fund in 2012. The Fund is mandated to compensate investors who suffer pecuniary loss arising from the revocation or cancellation of the registration of a dealing member; insolvency, bankruptcy or negligence of a dealing member; or defalcation committed by a dealing member or any of its directors, officers, employees or representatives. [11]

Regulation

The NSE is regulated by the Nigerian Securities and Exchange Commission. [12]

Leadership and subsidiaries

The Nigerian Exchange Group is led by a group chief executive, a position currently held by Oscar N. Onyema. [13] Following the demutualisation and rebranding in 2021, the NGX is made up of the following wholly owned subsidiaries:

In October 2022, the NGX Board announced the appointment of Dr. Umaru Kwairanga as its new chairman and Mr. Oluwole Adeosun as the vice chairman. [14] [15] [16]

Indices

The Exchange maintains a value-weighted All-Share Index formulated in January 1984 (January 3, 1984, = 100). Its highest value of 66,371.20 was recorded on March 3, 2008. The Exchange also uses the NSE-30 Index, which is a sample-based capitalization-weighted index, as well five sector indices. These are the NSE Consumer Goods Index, NSE Banking Index, NSE Insurance Index, NSE Industrial Index, and NSE Oil/Gas Index. [17]

Associations

The Nigerian Exchange is a member of the World Federation of Exchanges (FIBV). It is also an observer at meetings of the International Organization of Securities Commissions (IOSCO) and a founding member of the African Stock Exchanges Association (ASEA). On 31 October 2013, it joined the Sustainable Stock Exchanges Initiative (SSE). [18]

See also

Related Research Articles

<span class="mw-page-title-main">Stock exchange</span> Organization that provides services for stock brokers and traders to trade securities

A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividends. Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as "continuous auction" markets with buyers and sellers consummating transactions via open outcry at a central location such as the floor of the exchange or by using an electronic trading platform.

<span class="mw-page-title-main">Security (finance)</span> Tradable financial asset

A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any form of financial instrument, even though the underlying legal and regulatory regime may not have such a broad definition. In some jurisdictions the term specifically excludes financial instruments other than equities and fixed income instruments. In some jurisdictions it includes some instruments that are close to equities and fixed income, e.g., equity warrants.

Australian Securities Exchange Ltd (ASX) is an Australian public company that operates Australia's primary securities exchange, the Australian Securities Exchange. The ASX was formed on 1 April 1987, through incorporation under legislation of the Australian Parliament as an amalgamation of the six state securities exchanges, and merged with the Sydney Futures Exchange in 2006.

<span class="mw-page-title-main">Bombay Stock Exchange</span> Indian stock exchange in Mumbai

BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange which is located on Dalal Street, known as the Wall Street of Mumbai, in turn described as the New York of India. Established in 1875 by cotton merchant Premchand Roychand, it is the oldest stock exchange in Asia, and also the tenth oldest in the world. The BSE is the world's 8th largest stock exchange with a market capitalization exceeding US$4.5 trillion as of January 2024.

<span class="mw-page-title-main">National Stock Exchange of India</span> Indian securities marketplace

National Stock Exchange of India Limited (NSE) is one of the leading stock exchanges in India, based in Mumbai. NSE is under the ownership of various financial institutions such as banks and insurance companies. It is the world's largest derivatives exchange by number of contracts traded and the third largest in cash equities by number of trades for the calendar year 2022. It is the 7th largest stock exchange in the world by total market capitalization, as of January 2024. NSE's flagship index, the NIFTY 50, a 50 stock index is used extensively by investors in India and around the world as a barometer of the Indian capital market. The NIFTY 50 index was launched in 1996 by NSE.

<span class="mw-page-title-main">Euronext Dublin</span> Irish stock exchange

Euronext Dublin is Ireland's main stock exchange, and has been in existence since 1793.

<span class="mw-page-title-main">Athens Exchange</span> Stock exchange of Greece

The Athens Stock Exchange is the stock exchange of Greece, based in the capital city of Athens. It was founded in 1876. There are currently five markets operating in ATHEX: regulated securities market, regulated derivatives market, Alternative market, carbon market and OTC market. In the regulated securities market investors can trade in stocks, bonds, ETFs and other related securities. On the stock exchange 172 stocks are currently traded representing 166 companies.

<span class="mw-page-title-main">Nairobi Securities Exchange</span> Stock exchange of Nairobi, Kenya

The Nairobi Securities Exchange (NSE) was established in 1954 as the Nairobi Stock Exchange, based in Nairobi the capital of Kenya. It was a voluntary association of stockbrokers in the European community registered under the Societies Act in British Kenya. The exchange had 66 listed companies in February 2021.

<span class="mw-page-title-main">Amman Stock Exchange</span>

Amman Stock Exchange (ASE) is a stock exchange private institution in Jordan, based in Amman.

<span class="mw-page-title-main">Zenith Bank</span> Nigerian commercial financial services company

Zenith Bank Plc is a large financial service provider in Nigeria and Anglophone West Africa, headquartered in Victoria Island, Lagos. It is licensed as a commercial bank by the Central Bank of Nigeria, the national banking regulator.

<span class="mw-page-title-main">United Bank for Africa</span> Nigerian financial services conglomerate

United Bank for Africa Plc (UBA) is a Multinational pan-African financial services group headquartered in Lagos Island, Lagos and known as Africa’s Global Bank. It has subsidiaries in 20 African countries and offices in London, Paris and New York. In December 2021, UBA received its banking license to commence operations in the UAE. It is listed as commercial bank by the Central Bank of Nigeria. The shares of stock of the group are listed on the Nigerian Stock Exchange, where they trade under the symbol: UBA. The Group Chairman of the bank is Tony Elumelu and the GMD/CEO is Oliver Alawuba.

<span class="mw-page-title-main">Oscar N. Onyema</span>

Oscar N. Onyema, is the Group Chief Executive Officer of Nigerian Exchange Group Plc, an institution that services the largest economy in Africa and champions the development of Africa’s financial markets. Prior to attaining this position, he was the CEO of The Nigerian Stock Exchange (“NSE”) for 10 years. He has widely been recognized as an agent of change in restoring and growing investors’ confidence and advancing Nigeria’s capital markets towards a path of sustainable growth and development. Onyema is the Chairman of two affiliate companies: Central Securities Clearing System Plc (CSCS), the clearing, settlement, and depository for the Nigerian capital market; and NG Clearing Limited, which is the premier Central Counter Party Clearing House (CCP) in Nigeria. He serves on several other boards and committees domestically and internationally including the Pension Commission of Nigeria (PENCOM), London Stock Exchange Group (LSEG) Africa Advisory Group (LAAG), and Membership Committee of the WFE. He served for over 20 years in United States financial markets and the Nigerian information technology sector.

Stanbic IBTC Holdings, commonly referred to as Stanbic IBTC, is a financial service holding company in Nigeria with subsidiaries in Banking, Stock Brokerage, Investment Advisory, Asset Management, Investor Services, Pension Management, TrusteesInsurance Brokerage and life Insurance businesses. The company's newly opened corporate headquarters, Stanbic IBTC Towers, is situated at Walter Carrington Crescent, Victoria Island, Lagos. Stanbic IBTC Holdings is a member of the Standard Bank Group, a financial services giant based in South Africa. Standard Bank is Africa's largest banking group ranked by assets and earnings, operations in 20 African countries and 13 countries outside Africa.

HDFC Securities Limited is a financial services intermediary and a subsidiary of HDFC Bank, a private sector bank in India. HDFC Securities was founded in year 2000 and is headquartered in Mumbai, with branches across major cities and towns in India.

<span class="mw-page-title-main">Afrinvest</span>

Afrinvest Limited is a Nigerian capital market holding company with specialized subsidiaries focusing on the unique but integrated wealth management needs of clients in West Africa. The subsidiaries are Afrinvest Asset Management, Afrinvest Capital, Afrinvest Consulting, Afrinvest Securities and Afrinvest Trustees.

Abimbola Olurotimi Ogunbanjo was a Nigerian businessman who was the Group Chairman of the Nigerian Exchange Group Plc,, the non-operating holding company that emerged from the demutualisation of The Nigerian Stock Exchange (NSE) from 2021 to 2022.

Meristem Securities Limited is a Nigerian Capital Market Conglomerate regulated by the Securities and Exchange Commission (SEC), based in Lagos State, Nigeria. Formerly known as Great Africa Securities Limited and founded in 2003, the company had a change of name to Meristem in 2005. The company consists of six subsidiaries: Meristem Stockbrokers, Meristem Wealth, Meristem Registrars and Probate Services, Meristem Capital, Meristem Trustees, and Meristem Finance.

<span class="mw-page-title-main">Parthian Partners Limited</span> Nigerian capital market conglomerate

Parthian Partners Limited (PPL) is a Nigerian capital market conglomerate based in Lagos, Nigeria. The company was incorporated as a Private Limited Liability in Nigeria in 2012. PPL is licensed and regulated by the Securities and Exchange Commission (SEC) and an FMDQ Exchange associate member. The company was awarded the Best Brokerage Service Award by the FMDQ Gold Awards in 2018. Parthian Partners is rated as a company with a stable financial outlook.

Temi Popoola CFA is a Nigerian financial services executive currently serving as the CEO of Nigerian Exchange (NGX) Limited, a subsidiary of The Nigerian Exchange Group.

References

  1. ↑ "Companies listed on ASeM".
  2. ↑ "NSE Listed Securities".
  3. ↑ "About Us - Nigerian Exchange Limited" . Retrieved 2022-02-22.
  4. ↑ "The Stock Exchange". The Nigerian Stock Exchange. Retrieved 2012-06-08.
  5. ↑ Lukasiewicz, Mariusz. "Finance, Investment and Decolonisation in Nigeria." Zeitschrift für Unternehmensgeschichte 67, no. 2 (2022): 189-217.
  6. ↑ Opening of Lagos Stock Exchange. The Financial Times (London, England), Thursday, June 15, 1961; pg. 5; Edition 22,417
  7. ↑ Good Start on Lagos S. E. The Financial Times (London, England), Tuesday, October 24, 1961; pg. 5; Edition 22,528
  8. ↑ Jeremiah, Urowayino (2021-04-13). "Nigerian Exchange launches new corporate identity". Vanguard News. Retrieved 2022-10-10.
  9. 1 2 Ayodele, Mercy (2021-04-22). "EXPLAINER: What NSE's rebranding as Nigerian Exchange Group means". Businessday NG. Retrieved 2022-10-10.
  10. ↑ "Nigerian Exchange Group launches new corporate identity | Marketing Edge Magazine". Marketing Edge Magazine. 2021-04-13. Retrieved 2022-10-10.
  11. ↑ "NSE Investors' Protection Fund" (PDF).
  12. ↑ "What We Do". SEC Nigeria. Retrieved 2011-06-08.
  13. ↑ "Demutualisation: Oscar Onyema named GCEO Nigerian Exchange Group". TheCable. 2021-01-06. Retrieved 2022-10-10.
  14. ↑ "NGX Group appoints new chairman The Nation Newspaper". 2022-10-10. Retrieved 2022-10-10.
  15. ↑ Rapheal (2022-10-10). "NGX Group appoints Kwairanga as new chairman". The Sun Nigeria. Retrieved 2022-10-10.
  16. ↑ "Leadership - Nigerian Exchange Limited" . Retrieved 2022-10-10.
  17. ↑ "All-Share Index". NSE. Archived from the original on 2012-06-22. Retrieved 2012-06-09.
  18. ↑ "Nigerian Stock Exchange joins United Nations Sustainable Stock Exchanges Initiative". UNCTAD. Retrieved 9 May 2014.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.