NGX Group shareholders call for sustained performance,

Nigerian Exchange Group Plc shareholders gathered at the company's Annual General Meeting with a clear mandate: maintain the momentum of recent performance gains while tightening controls against market manipulation. The dual call reflects growing investor confidence in Nigeria's primary bourse, tempered by persistent concerns over price integrity and fair-value discovery—issues that have historically deterred both domestic and international capital flows.

NGX Group's performance trajectory over the past 18 months has been noteworthy. The All-Share Index rallied from a low of 97,763 points in October 2023 to above 102,000 by early 2025, driven by strong corporate earnings, foreign portfolio inflows, and renewed retail participation. Shareholder commendations at the AGM underscore recognition of management's strategic repositioning: diversified revenue streams (trading fees, listing services, data products), infrastructure upgrades, and regional expansion initiatives. Yet this goodwill comes with a condition—sustained, authentic growth.

## Why is market surveillance now a shareholder priority?

Price manipulation allegations have haunted the Nigerian equity market for years, ranging from coordinated pump-and-dump schemes in micro-cap stocks to suspicious trading patterns in blue-chips during earnings seasons. In 2024, retail investors reported irregular price movements in several listed equities lacking fundamental drivers, eroding confidence among newer market entrants. Shareholders recognize that without credible surveillance, NGX's credibility—and its ability to attract institutional capital—remains compromised. A bourse known for fair play attracts capital; one suspected of lax oversight loses it.

## What regulatory tools is NGX deploying?

NGX has invested in real-time monitoring systems and data analytics to flag suspicious order clusters, layering, and spoofing—tactics commonly used to artificially inflate volumes or prices. The exchange's 2024 market surveillance budget increased 32% year-on-year, and staffing in the compliance division expanded. However, shareholder feedback at the AGM suggests these measures, while welcome, remain insufficient without coordinated action from the Securities and Exchange Commission (SEC), the financial regulator. Shareholders are essentially calling for a public-private surveillance partnership.

## What does this mean for equity investors?

For retail and institutional investors, sustained performance and tighter surveillance create a virtuous cycle. Cleaner markets attract more capital, which drives broader index gains and improves liquidity for mid-cap and small-cap stocks. Foreign institutional investors—a key growth driver—are particularly sensitive to governance and fair-trading allegations; stronger surveillance directly impacts their allocation decisions to Nigeria.

Conversely, failure to curb manipulation could reverse recent gains. Investor confidence is fragile. A high-profile price manipulation scandal, if publicized, could trigger a multi-month correction and capital flight. The shareholder call, therefore, is not merely aspirational—it is a risk management message to the board.

NGX management's response will be critical. Expect announcements in Q1 2025 around enhanced surveillance tools, increased penalties for manipulation, and closer coordination with SEC. The market is watching.

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