NGX Group Profits Rise as Debt Repayment Offsets FX Losses, Proposes 1-for-3 Bonus And ₦2 Dividend

Nigerian Exchange Group Plc (NGX) has delivered a resilient audited full-year 2025 performance, defined by a successful transition from “borrowed growth” to operational efficiency.

Despite a massive swing in foreign exchange outcomes due to the Naira’s appreciation, the Group reported a 5.6% rise in Net Profit to ₦10.5 billion.

The results highlight a “cleaner” balance sheet, as the NGX Group leveraged its robust cash flow from record trading volumes to fully repay its ₦6.0 billion debt, drastically reducing its future interest obligations.

NGX Financial Scorecard

The surge in market participation across 2025, driven by sector-wide bank recapitalizations, transformed the Group’s revenue mix.

Source: Company Financials

Operational Efficiency: Deleveraging and Cost Control

A key highlight of the 2025 result was the Group’s disciplined management of its internal resources:

• Reduced Debt: NGX Group fully retired its ₦6.0 billion term borrowing, resulting in a 67% drop in finance costs. This move was supported by a massive increase in its cash position, which stood at ₦2.6 billion compared to just ₦870 million in 2024.

• Flattish OPEX: Operating expenses remained controlled despite inflation. The Group slashed spending on market development (-36%) and facility-related expenses (-43%), allowing the EBIT margin to expand to 48%.

• The FX “Drag”: Ironically, the Naira’s strength in 2025 acted as a headwind. The Group booked an unrealized FX loss of ₦465.4 million, a sharp contrast to the ₦4.0 billion gain recorded during the 2024 devaluation.

Associate Headwinds: CSCS and NG Clearing

While the core exchange business thrived, the Group’s investments in associates faced a “perfect storm”:

• CSCS Performance: Profit share from the Central Securities Clearing System (CSCS)—the Group’s most valuable associate—declined by 15.9% to ₦4.4 billion.

• NG Clearing Loss: The new central counterparty, NG Clearing Limited, reported a ₦2.3 billion loss, of which NGX Group absorbed ₦647.9 million.

• Yield Sensitivity: The overall share of profit from associates fell by 31.3%, preventing the Group’s total income from matching its top-line revenue growth.

Shareholder Reward: Dividend and Bonus Issuance

To signal long-term value, the Board has proposed a dual reward for shareholders:

• Cash Dividend: ₦2.00 per share. The Board approved a final cash dividend of ₦2.00 per ordinary share, bringing total dividend for FY 2025 to ₦3.00 per share, a 50% increase year-on-year.

• Bonus Issue: One (1) new ordinary share for every three (3) shares currently held. This move is intended to increase the stock’s liquidity and capitalize the Group’s retained earnings.

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