Business
Running on empty: The lack of direction by the Board of the Nigerian Exchange Group
Running on empty: The lack of direction by the Board of the Nigerian Exchange Group
When on March 30, 2017, members of the then Nigerian Stock Exchange passed a resolution at an extraordinary general meeting authorising their national council to commence the process that would demutualise the Exchange, it felt like a ray of sunshine for the average mom and pop to share in this wealth creating platform called The Nigerian Stock Exchange.
The idea to demutualise had been in the works since 2001; however, was not until 2015 that the Securities and Exchange Commission issued rules on the demutualisation of exchanges in Nigeria.
The demutualisation of The Nigerian Stock Exchange was eventually completed on March 10, 2021, a process that created 432 new shareholders made up of 255 dealing members (stockbrokers) and 177 ordinary members (individuals).
A demutualised Exchange was perceived as a major powerhouse for wealth creation. This was reflected in the price of the shares as it was listed at a price N27.90 as stockbrokers confirmed that their clients were falling over themselves to become shareholders. People were extremely reluctant to sell because of the strong profit prospects. These stockbrokers confirm that on a daily basis it got to a point that there were demand for over 50 million shares with no sellers offering to sell a single share, “AND THEN THE NIGHTMARE STARTED”
In September 2021 the NGX published its 2020 Financial Account, the first published result as a demutualised exchange. The result was nothing short of a nightmare, sheer disaster.
The new demutualised Exchange recorded an operating loss of =N=93.96 million compared to a =N=12.992 billion profit recorded by its closest rival Exchange, FMDQ for the same period.
With no inclination or determination to come out and bat for their newly minted shareholders the executive management and board of the NGX had no reservation spending the =N=6.02 billion income made that year on personnel and operational costs, out of =N=6.11 billion; that was 98.52% of their income (spending over =N=3.1 billion on just 269 staff members).
To confirm the board and management’s insensitivity to a return on investment to shareholders at that 2020 annual general meeting, instead of proffering ways to address improved returns to shareholders, their major preoccupation was to argue that The company’s executive management was not being compensated enough and to demand that shareholders dig deep into the company’s shareholders funds and allot 200,419,990 ordinary shares for the operation of a long term incentive plan for executive management consisting of a deferred bonus plan (DBP).
The equivalent value of this share bonus scheme (gift) to staff, if the company had in the alternative sold those shares in the open market at the company’s listing price would be =N=5,571,675,722.00.
The board was not done yet. At that same general meeting, they also asked shareholders to approve for the payment of =N=126,000,000.00 to all non-Executive members of the erstwhile National Council of the Nigerian Stock Exchange as at 31st of December 2020.
That was the 9th of September 2021. Fast-forward to the 7th of September 2022, the Nigerian Exchange Group published its full-year account for 2021 as posted on its website and guess what? The hemorrhaging is still persisting.
Just like in 2020, the company reported Income for the year 2021 of =N=6.80 billion and expense of =N=6.52 billion. And just like they did in their 2020 AGM the board and management intend to demand that the shareholders reward the Board and Executive Management for such sorry performance.
The Board, in their published notice to shareholders, are beating their chest and saying to the shareholders that they have done excellent work and that shareholders should allow them to continue on this downward trajectory for another Year.
The Board, from the published notice to shareholders are seeking =N=35 billion of new capital, preferably in “Dollars”, without providing an articulated capital allocation plan as well as utilisation plan.
Two questions, if I were a shareholder, would love to ask at this meeting holding on the 30th of September 2022: (1) Why should I trust you with new money when all you have done is frittered what you have for your personal benefit with no recourse to me, the shareholders that invested my hard-earned money into the company (2) why has the net cash position been dropping? Rather than increasing, it dropped over the years from =N=11.5 billion in 2019 to, =N=10.3 billion in 2020, to =N=7.0 billion in 2021.
The Shareholders of The Nigerian Exchange Group need to wake up and end this nightmare; the NGX should be a bastion of everything that is desired in a listed company.
· World-class Corporate Governance
· Current Chairman and Chief Executive have been at the helm for close to 11 years
· Competitive Return on Investment and Return on Equity
· Company has done two years post demutualisation without paying a single kobo dividend
· Best in class Expense Management programme (cost to Income earned)
· FMDQ cost/income of 46% for 2021
· NGX cost / income of 96% for 2021
The current market price of shares of NGX of =N=19.80 as against the listing price of =N=27.90 is a statement and reflection of investors negative perception, not just on the NGX Group and the people running it, but a declaration of non-confidence on the people running and overseeing the actual Exchange. Even the chairman alludes to this in the Chairman’s statement in the just-published annual account “the Group is trading at about 17x compared to the global peer average of 20x, which suggests that its shares are undervalued relative to other Exchanges globally.
Nigeria’s Inflation Drops to 15.10% as NBS Reports Deflationary Trend
Nigeria’s headline inflation rate declined to 15.10 per cent in January 2026, marking a significant drop from 27.61 per cent recorded in January 2025, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics.
The report also showed that month-on-month inflation recorded a deflationary trend of –2.88 per cent, representing a 3.42 percentage-point decrease compared to December 2025. Analysts say the development signals easing price pressures across key sectors of the economy.
Food inflation stood at 8.89 per cent year-on-year, down from 29.63 per cent in January 2025. On a month-on-month basis, food prices declined by 6.02 per cent, reflecting lower costs in several staple commodities.
The data suggests a sustained downward trajectory in inflation over the past 12 months, pointing to improving macroeconomic stability.
The administration of President Bola Ahmed Tinubu has consistently attributed recent economic adjustments to ongoing fiscal and monetary reforms aimed at stabilising prices, boosting agricultural output, and strengthening domestic supply chains.
Economic analysts note that while the latest figures indicate progress, sustaining the downward trend will depend on continued policy discipline, exchange rate stability, and improvements in food production and distribution.
The January report provides one of the clearest indications yet that inflationary pressures, which surged in early 2025, may be moderating.
Nigeria’s headline inflation rate declined to 15.10 per cent in January 2026, marking a significant drop from 27.61 per cent recorded in January 2025, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics.
The report also showed that month-on-month inflation recorded a deflationary trend of –2.88 per cent, representing a 3.42 percentage-point decrease compared to December 2025. Analysts say the development signals easing price pressures across key sectors of the economy.
Food inflation stood at 8.89 per cent year-on-year, down from 29.63 per cent in January 2025. On a month-on-month basis, food prices declined by 6.02 per cent, reflecting lower costs in several staple commodities.
The data suggests a sustained downward trajectory in inflation over the past 12 months, pointing to improving macroeconomic stability.
The administration of President Bola Ahmed Tinubu has consistently attributed recent economic adjustments to ongoing fiscal and monetary reforms aimed at stabilising prices, boosting agricultural output, and strengthening domestic supply chains.
Economic analysts note that while the latest figures indicate progress, sustaining the downward trend will depend on continued policy discipline, exchange rate stability, and improvements in food production and distribution.
The January report provides one of the clearest indications yet that inflationary pressures, which surged in early 2025, may be moderating.
Alpha Morgan to Host 19th Economic Review Webinar
In an economy shaped by constant shifts, the edge often belongs to those with the right information.
On Wednesday, February 25, 2026, Alpha Morgan Bank will host the 19th edition of its Economic Review Webinar, a high-level thought leadership session designed to equip businesses, investors, and individuals with timely financial and economic insight.
The session, which will hold live on Zoom at 10:00am WAT and will feature economist Bismarck Rewane, who will examine the key signals influencing Nigeria’s economic direction in 2026, including policy trends, market movements, and global developments shaping the local landscape.
With a consistent track record of delivering clarity in uncertain times, the Alpha Morgan Economic Review continues to provide practical context for decision-making in a dynamic environment.
Registration for the 19th Alpha Morgan Economic Review is free and can be completed via https://bit.ly/registeramerseries19
It is a bi-monthly platform that is open to the public and is held virtually.
Visit www.alphamorganbank to know more.
GTBank Launches Quick Airtime Loan at 2.95%
Guaranty Trust Bank Ltd (GTBank), the flagship banking franchise of GTCO Plc, Africa’s leading financial services group, today announced the launch of Quick Airtime Loan, an innovative digital solution that gives customers instant access to airtime when they run out of call credit and have limited funds in their bank accounts, ensuring customers can stay connected when it matters most.
In today’s always-on world, running out of airtime is more than a minor inconvenience. It can mean missed opportunities, disrupted plans, and lost connections, often at the very moment when funds are tight, and options are limited. Quick Airtime Loan was created to solve this problem, offering customers instant access to airtime on credit, directly from their bank. With Quick Airtime Loan, eligible GTBank customers can access from ₦100 and up to ₦10,000 by dialing *737*90#. Available across all major mobile networks in Nigeria, the service will soon expand to include data loans, further strengthening its proposition as a reliable on-demand platform.
For years, the airtime credit market has been dominated by Telcos, where charges for this service are at 15%. GTBank is now changing the narrative by offering a customer-centric, bank-led digital alternative priced at 2.95%. Built on transparency, convenience and affordability, Quick Airtime Loan has the potential to broaden access to airtime, deliver meaningful cost savings for millions of Nigerians, and redefine how financial services show up in everyday life, not just in banking moments.
Commenting on the product launch, Miriam Olusanya, Managing Director of Guaranty Trust Bank Ltd, said: “Quick Airtime Loan reflects GTBank’s continued focus on delivering digital solutions that are relevant, accessible, and built around real customer needs. The solution underscores the power of a connected financial ecosystem, combining GTBank’s digital reach and lending expertise with the capabilities of HabariPay to deliver a smooth, end-to-end experience. By leveraging unique strengths across the Group, we are able to accelerate innovation, strengthen execution, and deliver a more integrated customer experience across all our service channels.”
Importantly, Quick Airtime Loan highlights GTCO’s evolution as a fully diversified financial services group. Leveraging HabariPay’s Squad, the solution reinforces the Group’s ecosystem proposition by bringing together banking, payment technology, and digital channels to deliver intuitive, one-stop experiences for customers.
With this new product launch, Guaranty Trust Bank is extending its legacy of pioneering digital-first solutions that have redefined customer access to financial services across the industry, building on the proven strength of its widely adopted QuickCredit offering and the convenience of the Bank’s iconic *737# USSD Banking platform.
About Guaranty Trust Bank
Guaranty Trust Bank (GTBank) is the flagship banking franchise of GTCO Plc, a leading financial services group with a strong presence across Africa and the United Kingdom. The Bank is widely recognized for its leadership in digital banking, customer experience, and innovative financial solutions that deliver value to individuals, businesses, and communities.
About HabariPay
HabariPay is the payments fintech subsidiary of GTCO Plc, focused on enabling fast, secure, and accessible digital payments for individuals and businesses. By integrating payments and digital technology, HabariPay supports innovative services that make everyday financial interactions simpler and more seamless.
Enquiries:
GTCO
Group Corporate Communication
[email protected]
+234-1-2715227
www.gtcoplc.com
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