NGX Group declares first interim dividend payment since demutualization

The Nigerian Exchange Group Plc (NGX Group) has announced an interim dividend of 25 kobo per ordinary share of 50 kobo each, distributable to shareholders for the first half of the financial year 2023.

 According to a statement made available to Nairametrics, the resolution to declare an interim dividend was taken at an emergency meeting of the Board of Directors on Tuesday, 25 July 2023.

This dividend, which is the first since the demutualization of the Nigerian Stock Exchange will be paid to shareholders whose names appear in the Shareholders’ Register as of the close of business Monday, 31 July 2023.

Payment will be remitted electronically to qualified shareholders on Thursday, 31 August 2023.

The dividend announcement comes as a resolution of the Board following the request from shareholders at the recently held Annual General Meeting on 14 July 2023.

Commenting on the dividend announcement, the Chairman, of NGX Group, Alhaji (Dr) Umaru Kwairanga said:

“The announcement of the dividend will send a signal to our shareholders that the Company has a listening and responsive Board following the request at the last annual general meeting. We hope to continue enjoying the support of our valued shareholders as NGX Group seeks to execute its strategy to create sustainable growth in the medium to long term”.

The Group Chief Executive Officer, of NGX Group, Mr Oscar Onyema stated:

“The proposed payment will not significantly impact the cash position and retained earnings of the Company and will further position the company as investible for a wider class of investors in the capital market. 

We will continue to focus on maximizing value for shareholders just as we champion the development of Africa’s financial markets.”

Kaziranga had while addressing shareholders at the recent AGM noted that the Board and Management of Nigerian Exchange Group Plc (NGX Group) are open to working with the Federal government, as well as stakeholders towards improving the country’s credit profile and creating a favourable environment for both domestic and foreign. 

“The capital market community is excited by the new government and the steps it has so far taken concerning the economy as reflected in the tremendous growth in our market indicators. 

As a group, we are committed to working with the government to stimulate further growth in the economy, and address higher capital costs, as this will go a long way to enhance Nigeria’s credit profile and create a favourable environment for both domestic and foreign investors”, he said.

Kwairanga further noted that the Federal government needs to eke out more friendly market policies that will engender growth as consistent and faithful implementation of market policies will help businesses to thrive.

Speaking on the performance of the group, Kwairanga noted that NGX Group demonstrated resilience in 2022, achieving a 10.3% increase in gross earnings to N7.5 billion, despite a challenging economic environment.

“The Group’s total revenue grew primarily due to a 6.8% increase in revenue to N6.2 billion, and a 30.1% increase in other income to N1.3 billion.

The growth in its revenue was further bolstered by a 51.2% increase in treasury investment income and a 9.0% increase in transaction fees. 

However, its total expenses rose by 35.5% to N8.8 billion, primarily due to interest costs on borrowed funds used for strategic acquisitions.

“Achieving an efficient capital mix and broadening our access to capital remain fundamental to our mission. The Board will continue to assist the Management team in addressing long-term risks, strengthening the global NGX brand, and assessing progress toward our goal of being Africa’s preferred exchange hub”, Kwairanga said.