The Nigerian Exchange Group (NGX) is ramping up efforts to list Dangote Petrochemicals, a move poised to significantly increase Nigeria’s stock market capitalization and accelerate financial market development in line with the federal government’s economic vision.
A Strategic Listing to Drive Market Capitalization
Speaking on Friday, NGX Group Chairman Dr. Umaru Kwairanga confirmed that the exchange is working closely with Dangote Industries to ensure the listing of its petrochemical arm before the end of the second quarter of 2025.
Kwairanga underscored the strategic importance of this move, noting that it directly supports President Bola Tinubu’s economic plan to grow Nigeria’s Gross Domestic Product (GDP) to $1 trillion by 2030.
“Dangote Refinery has already applied for their petrochemical listing, and we are working to ensure their inclusion,” Kwairanga said, emphasizing the significance of energy sector listings in stimulating broader capital market activity.
He added that the listing of large-cap companies such as Dangote Petrochemicals and the expected partial sale of NNPC Limited would be instrumental in attracting new investment, enhancing liquidity, and fostering economic transparency.
Nigeria’s Market Capitalization Lags Behind Peers
Despite the NGX's growth in recent years, Nigeria’s stock market remains underdeveloped relative to its economic size. Kwairanga pointed out that Nigeria’s market capitalization is still below 20% of its GDP, far lower than peers like South Africa, where the Johannesburg Stock Exchange exceeds national GDP.
This, he said, underscores the urgent need to expand listings and deepen market participation, particularly among institutional and retail investors.
Reforms to Strengthen Market Infrastructure
To enhance efficiency and transparency, NGX and the Securities and Exchange Commission (SEC) have introduced reforms designed to streamline operations and improve investor confidence. Key measures include:
- Dematerialization of share certificates, enabling seamless electronic share ownership and transfer.
- Clearing timeline reduction to T+2 settlement, allowing quicker access to liquidity for traders.
- Resolution of unpaid dividends, addressing a long-standing investor concern and restoring trust in listed firms.
Kwairanga stressed that collaboration with market regulators and private sector stakeholders remains central to these efforts.
Embracing Technology for Financial Inclusion
A major pillar of NGX’s strategy is digital innovation. The launch of NGX Invest, a user-friendly digital platform, is part of a broader push to simplify participation in initial public offerings (IPOs) and promote financial literacy.
The platform specifically targets youths, students, and members of the National Youth Service Corps (NYSC)—a demographic viewed as critical to future capital market growth.
In addition to boosting retail participation, NGX is also engaging institutional investors such as pension fund managers and mutual funds, while building out a more diverse product suite. These include:
- Exchange-Traded Funds (ETFs) for portfolio diversification
- Derivatives to enhance risk management and speculative opportunities
- Ethical investment vehicles to cater to faith-based or sustainability-focused investors
Toward a More Connected African Financial Market
Beyond national efforts, NGX is part of a larger initiative to integrate capital markets across Africa, enabling cross-border trading. According to Kwairanga, Nigerian investors may soon be able to directly access stocks listed on other exchanges, such as Ghana’s.
This regional integration is seen as crucial for deepening liquidity, attracting foreign investors, and reducing the fragmentation of African capital markets.
NGX Outperforms Major African Markets—Except One
Despite headwinds such as reduced disposable income, infrastructural bottlenecks, and global macroeconomic instability, the Nigerian Exchange posted strong returns in May 2025.
With a 5.62% gain, NGX recorded Africa’s second-best return, outpacing the Johannesburg Stock Exchange, Casablanca Stock Exchange, Egyptian Exchange, and Ghana Securities Exchange. The only bourse to outperform Nigeria was the Nairobi Securities Exchange, which led with a 6.4% return.
Outlook: Confidence and Caution
As the NGX continues to deliver reforms and attract high-profile listings, optimism is growing about the potential for deeper capital market development. However, stakeholders remain cautious, noting that sustained growth depends on consistent regulatory support, macroeconomic stability, and investor confidence.
The listing of Dangote Petrochemicals could serve as a landmark moment—both for the exchange and for Nigeria’s ambition to become a financial hub on the continent.