NGX Group FY profit after tax up 22.2%

The Nigeria Exchange Group (NGX) has recorded a significant 22.2% growth in its profit after tax, amounting to 2.3 billion naira in 2021. CEO of the NGX Group, Oscar Onyema, spoke with CNBC Africa to dissect the numbers and shed light on the key drivers behind this remarkable performance. Onyema highlighted that the NGX Group underwent a transition from operating as a not-for-profit entity to a for-profit entity. The key drivers for the robust financial results included a 13% improvement in gross earnings, totaling 6.8 billion naira compared to 6 billion naira in 2020. Additionally, effective cost management and strong returns from investee companies contributed to the overall profitability, with the share of equity in investees amounting to 2.11 billion naira in 2021. Onyema described this achievement as a significant milestone, especially considering the restructuring efforts that were concurrently taking place within the organization. Despite the challenges posed by the restructuring process, Onyema expressed satisfaction with the reported numbers, indicating that they were in line with the organization's expectations. He emphasized that the groundwork undertaken in 2021 was essential to positioning the NGX Group for future growth and expansion beyond Nigeria's borders. Looking ahead, Onyema discussed the strategic initiatives aimed at consolidating on the gains from 2021 and propelling the NGX Group to become a leader on the African continent. He outlined the group's focus on digitization and technology across various verticals in the capital market value chain, with a keen interest in supporting emerging trends in the Nigerian economy. Onyema stressed the importance of strategic alignment across all subsidiaries to drive value for shareholders in a holistic manner. In response to the evolving landscape of fintech and capital formation, Onyema highlighted NGX's proactive approach in facilitating capital raising for public and private sector players. Noting that the exchange platform had facilitated the raising of 6.71 trillion naira in 2021, Onyema underscored NGX's commitment to leveraging technology and engaging with policymakers to create an enabling environment for capital markets growth. He also discussed plans to establish a technology board to support fintechs in accessing capital, given the unique valuation metrics associated with such companies. On the topic of attracting fintechs to raise capital locally, Onyema emphasized the need for investor education and regulatory adaptations to accommodate the growth-oriented nature of fintech investments. He highlighted the importance of creating a competitive environment that can rival global financial hubs, such as New York, Hong Kong, and London, in attracting innovative companies. In conclusion, Onyema's insights shed light on the strategic direction of the NGX Group as it aims to capitalize on emerging trends, bolster capital market activities, and drive sustainable growth across the African continent.