See what you need to know about the Nigerian Stock Exchange

The Nigerian stock exchange (NSE), now the Nigerian Exchange Group, is a regulatory organization that offers listing and trading services to businesses looking to expand or raise capital. The financial organization was founded in 1960 to help businesses get listed when they meet certain requirements which include market capitalization, number of shareholders, and an impressive track record of profitability. After a business is listed on the NSE, it can issue new shares to investors and this means more capital for the business.  

What is the objective of the Nigerian Stock Exchange?

The NSE aims at facilitating economic growth and development in Nigeria through different industries and organizations by providing them with a safe space to raise capital and expand their business. The regulatory body also strives towards creating a favorable marketplace for investors who want to put their money into good enterprises. 

Functions of the Nigerian Stock Exchange 

• Listing and trading of securities such as real estate, bonds, equities, and exchange-traded funds.

• Provision of opportunity for businesses to raise funds.

• Monitoring trading activities in the exchange to detect discrepancies, fraud, and market manipulation. 

• Act as a middleman between the investors and business owners. 

• Provision of market data and research services to customers. 

• Promotion and development of the Nigerian Capital Market. 

• Assist the government to implement monetary policies. 

Leadership Board of the Nigerian Stock Exchange

The NSE is a privately owned organization with the following individuals taking different leadership positions:

• Mr. Abubakar Mahmoud, SAN, OON - Chairperson

• Temi Popoola - Chief Executive Officer

• Mrs. Erelu Angela Adebayo - Director

• Mr. Kamarudeen Oladosu - Director

• Mr. Yomi Adeyemi - Director

• Mr. Seyi Okunseye - Director

• Mr.Ahonsi Unuigbe - Director 

• Mr.Faruk Umar- Director

• Ibrahim Dikko - Director

• Ms.Ummahni Ahmad Amin - Director

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How many companies are listed on the Nigerian Stock Exchange?

As seen on the Nigerian exchange group website, a total of  367 securities are currently listed on the NSE.  Also, about 157 companies that encompass different sectors are listed on the NSE. The sectors include the following: 

• Agriculture

• Conglomerates 

• Construction/Real estate

• Financial services

• Consumer goods

• Healthcare

• ICT

• Industrial goods

• Natural Resources

• Oil and Gas

• Services

Assets that can be listed on the Nigerian Stock Exchange

The various assets that can be listed on the NSE include the following: 

A Bond

Listing a bond, the NSE connects a business with African and International investors that can aid the expansion of the firm/business. The bond can take various forms such as: 

• Federal government bond

• State government bond

• Corporate bond

• Supranational bond 

• Sustainable bond

• International bond

• Savings/Eurobond

Benefits

• Greater visibility and enhanced brand recognition

• Huge access to global investors

• Simple and effective listing process

• Cost-effective listing fees.

A Company

This is an opportunity for a company to grow as the NSE gives access to capital that can help them fund their business and expand their strategies. The chance to get listed is open to both Nigerian and international companies, whether small or big. The pros of being listed on the NSE as a company include: 

• More than enough incentives to boost culture and workforce loyalty

• Access to grow-enabling capital from a wide range of investors.

• Expanded reach and strengthened brand identity. 

ETF (Exchange Traded Fund) 

The NSE gives enough support to issuers planning to list ETFs by providing them with information on the proper structure, product listing and trading, calculation services, idea formulation, and index development. Some of the advantages of listing ETFs on the NSE include:

• Increase in liquidity and tradability which can, in turn attract investors.

• Greater efficiency

• Increased business awareness.

Listing Requirements for ETFs and Mutual Funds

Hard copies of the following: 

• Evidence of payment of application/listing fees and CSCS eligibility fee

• Certified true copy of the certificate of incorporation

• Certified true copy memorandum and articles of association

• Board resolution

• Interim accounts (if any)

• Profit/dividend forecast

• Statement of reporting accountants

• Proposed timetable

• Vending agreement

• Trust deed

• Letters of consent from parties

• Abridged application (2 Copies)

• Detailed draft prospectus

• Draft abridged prospectus​

• Memorandum on offer pricing

• Estimated cost of issue

• Updated List of receiving agents (2 Copies)

• Corporate Affairs Commission (CAC) form Co2 and Co7 of any institutional investors holding more than 5% of the issued and fully paid up share capital of the company/issuer

• A certified copy of every report, valuation, resolution, or other document any of which is extracted or referred to in the prospectus.

Soft copies of the following: 

• Abridged application

• Prospectus​

• Estimated cost of issue 

Listing Requirements for Bonds and Companies

To get listed on the Nigerian stock exchange, a business must have met the following requirements in the specified quantity :

• Pretax profit

• Market capitalization

• Operating track record

• Financials

• Public float

• Shareholders equity

• IPO lockup period

• Public shareholders

• Annual listing fees

• Business operations

• Accounting standards

• Disclosure and Transparency rules

NSE offers 3 boards for customers to meet their capital raising needs depending on the "business stage"  and they include:

• Growth Board: Perfect for small capital and growth-oriented companies intending to raise capital and facilitate liquidity in the trading of their shares.

• Main Board: This board works well for well-established businesses with an impressive track record of achievements.

• Premium Board: This group is for upper-class organizations that meet the body's exact requirements for listing. 

What is the total market capitalization of the NSE? 

The total market capitalization of the Nigerian Stock Exchange is about NGN 52.6 trillion. 

Nigerian Stock Exchange Price List

The NSE price list consists of the following: 

• Equities price list

• Bonds price list

• ETFs price list

The price of a security on NSE can change frequently depending on market conditions, the company's financial performance, and other factors. There is no static price as the prices listed on the NSE are updated in real-time during trading hours which are usually between 10:00 am and 2:30 pm from Monday to Friday. 

News about the NSE

As of April 4, 2023, the NSE recorded a NGN318.52bn of listings in Q1 of 2023.