The Nigerian Exchange Limited (NGX) has concluded its full-year review of major equity indices, introducing a series of adjustments aimed at enhancing market representation, liquidity, and overall investment tracking. The changes, which took effect at the opening of trading on Friday, January 2, 2025, span several benchmark, sectoral, and partner indices on the Exchange.
Scope of the Review
The review covered a wide range of indices, including the NGX 30, NGX Lotus Islamic Index, NGX Pension Index, NGX Pension Broad Index, Corporate Governance Index, as well as partner indices managed in collaboration with Afrinvest and Meristem. NGX’s five sectoral indices—Banking, Insurance, Industrial, Consumer Goods, and Oil & Gas—were also affected.
According to NGX, the periodic rebalancing is designed to ensure that indices remain reflective of current market realities and continue to serve as reliable tools for portfolio construction and performance benchmarking.
Changes to the NGX 30 and Sectoral Indices
One of the notable outcomes of the review was the admission of Guinness Nigeria Plc into the NGX 30 Index, the Exchange’s flagship benchmark, while United Capital Plc exited the index.
In the sectoral space, Mutual Benefits Assurance Plc replaced Guinea Insurance Plc in the Insurance Index. The Oil & Gas Index saw Japaul Gold & Ventures Plc admitted, while MRS Oil Nigeria Plc was removed.
Pension and Ethical Investment Indices
Adjustments were also made to indices tailored to pension funds and ethical investors. Wema Bank Plc joined the NGX Pension Index, replacing International Breweries Plc. Presco Plc was admitted into the NGX Lotus Islamic Index, which tracks Shariah-compliant equities.
Within the Pension Broad Index, Nigeria Infrastructure Debt Fund was added, while Regency Alliance Insurance Plc and Veritas Kapital Assurance Plc exited.
Partner Indices See Broad Rebalancing
Significant changes were recorded across indices managed in partnership with Afrinvest and Meristem. The Afrinvest Bank Value Index admitted Wema Bank Plc and Jaiz Bank Plc, while Access Holdings Plc and Stanbic IBTC Holdings Plc were removed.
The Afrinvest Dividend Yield Index welcomed Dangote Cement Plc, Okomu Oil Palm Company Plc, and Vitafoam Nigeria Plc. Exiting the index were Conoil Plc, May & Baker Nigeria Plc, Red Star Express Plc, SFS Real Estate Investment Trust, and Tripple Gee & Company Plc.
On the Meristem Growth Index, BUA Cement Plc, Lafarge Africa Plc, AXA Mansard Insurance Plc, and AIICO Insurance Plc were added, while CAP Plc, Conoil Plc, and United Capital Plc were removed. Meanwhile, the Meristem Value Index admitted Ecobank Transnational Incorporated, Julius Berger Nigeria Plc, and NEM Insurance Plc, with Dangote Sugar Refinery Plc, TotalEnergies Marketing Nigeria Plc, and Lafarge Africa Plc exiting.
NGX’s Rationale and Market Outlook
NGX reiterated that its indices are constructed using a market-capitalisation-based methodology and are rebalanced semi-annually, with changes taking effect on the first business day of January and July.
Commenting on the review, NGX Chief Executive Officer Jude Chiemeka said the Exchange remains focused on strengthening market development through innovation and product enhancement, with the aim of deepening liquidity and positioning Nigeria’s capital market within the global investment landscape.
Similarly, the Head of Trading and Products, Abimbola Babalola, noted that NGX indices are designed to help investors efficiently track market performance and manage their portfolios more effectively.
Possibility of Further Adjustments
NGX also disclosed that the index compiler reserves the right to make additional adjustments where necessary, particularly in cases involving mergers, acquisitions, trading suspensions or resumptions, and other corporate actions that may occur before the effective date of the review.
Overall, the latest reshuffle underscores NGX’s ongoing efforts to keep its indices relevant, transparent, and aligned with evolving market dynamics.