FGN Bonds, Other Listings on NGX Hit N6.23trn in October

Kayode Tokede

Listings on Nigerian Exchange Limited crossed the N6 trillion mark at the end of October amid the uptick in capital market activity in the second half of 2023.

According to the X-Compliance report of NGX Regulation Limited (NGX RegCo), total equity, fixed income, exchange traded funds and mutual funds listed on NGX year-to-date (Year-till-Date) as of October ending totalled N6.23 trillion.

This was majorly because of fixed income listings by the Federal Government of Nigeria which rose drastically in October.

FGN fixed income listings consist of FGN Bonds, FGN Savings Bonds and Sukuk bonds. This amounted to N6.08trillion YtD. Also, the exchange admitted VFD Group and Nigeria Infrastructure Debt Fund (NIDF) at market capitalisations of N46.5bn and N92.54billion respectively, in October representing the major equity listings on NGX in 2023.

Lagos State Government remains the only sub-national entity to raise capital on the exchange as its debt issuances hit N157.15billion. Other notable listings came from Dangote Industries Funding Plc, LFCZ Funding SPV Plc among others.

The Exchange this year said it management are engaging with Securities and Exchange Commission (SEC) and other market stakeholders to accommodate dollar asset listings from companies, particularly within the free trade zone.

The Chief Executive Officer, NGX, Temi Popoola, whilst commending the government on reforms taken to address foreign exchange challenges in the country, noted that the Exchange features a number of companies with diverse business models, some of which not only generate revenue in dollars but also report profits in dollars.

“This presents an investment opportunity especially if these firms could distribute their dividends to local investors in dollars,” he said.

The CEO explained that disbursing dividends in dollars could potentially address the challenges posed by fluctuations in forex currently bedeviling the economy, adding that NGX is working with SEC and other market stakeholders to create a revised listing regulation for companies within the free trade zones who had their topline revenue to bottom-line in dollars.

Popoola further noted that the Exchange’s primary objective is to enable these companies issue bonds denominated in dollars and eventually offer dollar equity. “This can help attract listings and achieve the objectives of the administration under President Bola Tinubu.”

This also comes amid the strong performance in the equity secondary market, as the All-Share Index of NGX crossed the 70,000 mark with a 36.67per cent YtD rise. Investors, both local and domestic, continue to observe the market dynamics amid a drastic shift in monetary and fiscal policy.