NGX Group Aims to Deepen Value in Subsidiaries, Investee Companies
The Nigerian Exchange Group Plc (NGX Group) has disclosed that it would generate increased growth by deepening value creation in its subsidiaries, and associate companies and expand into adjacent businesses.
During its virtual 2022 Financial Year Investor and Analyst Presentation yesterday, the Group Chief Executive Officer, NGX Group, Mr Oscar Onyema, told investors that the company was focused on supporting its wholly owned subsidiaries and investee companies across multiple initiatives.
While responding to questions from analysts, Onyema noted that the Group doubled down on its investments in its associate company, Central Securities and Clearing System (CSCS) seeing the strong dividend-generating potential of the firm.
“As a way to delve into new strategic investments, we doubled down on investment in CSCS, moving our ownership from 29per cent to about 44.18per cent. The essence of taking this initiative is so that we can work with the company and its stakeholders to drive improved revenues.
“Excitingly, they have demonstrated the ability to pay dividends and so we are constantly exploring more business expansion initiatives like the document utilization project with CSCS whilst growing the company.”
In addressing the rise in expenses driven by increased interest and personnel expenses, he said the company aimed to streamline debt to cut down on interest expenses with a keen interest in reducing operational costs for the business and optimising personnel expenses without overhead reduction in staff strength.
On the performance of the Exchange, Mr Temi Popoola, CEO, Nigerian Exchange Limited (NGX) spoke on some of the year’s major achievements with highlights drawn from the rise of Equity capitalization, Fixed income market capitalization and Exchange Traded Fund (ETF) Market Capitalization which rose by 25.20per cent, 17.58per cent and 17.58per cent respectively.
Additionally, the value traded for the derivatives (ETF) capitalisation reached N16.49million with a Market capitalization of N3.6billion at the close of 2022.
“NGX’s strategic business goal for 2023 will include forging more partnerships with development finance institutions and international banks to further develop the market.
“We aim to do more with our newly forged partnership with Afreximbank through the PAPSS initiative to allow for flexibility in Africa’s payment integrations system.”
CEO, NGX Regulation Limited (NGX RegCo), the self-regulatory organization arm of the Group, Tinuade Awe said NGX RegCo embarked on a number of thought leadership steps, one of which was regulatory consulting and policy formulation for key players in the sector, Issuers Engagement Forum for stakeholders and formidable partnership with regulators.
“We will continue to enable a transparent and orderly market through investor protection, policy formulation and enforcement and compliance audit,” she said.
The Acting CEO, Mr Gabriel Igbeka, NGX Real Estate Limited (NGX RelCo) further highlighted that the company has been able to actualize a cost-saving mechanism of about N26.6 million in 2022, having introduced a property management solution that boosts efficiency, improves service quality and reduces cost.