NGX Group clarifies “lack of direction” media reports


The Nigerian Exchange Group (Plc) has maintained that it will continue to uphold the highest corporate governance standards, adding that it remains on course with its long term strategy to provide competitive returns for its investors.

This is coming after a report pointed out that the Board and Management of the NGX Group appears to be running on empty direction after achieving demutualisation.

The report noted that so far the NGX financial report has been nothing short of a disaster while adding that its plan of seeking N35 billion was not well articulated.

However, in a statement issued to the investing public yesterday, the group stated that it is and remains committed to the highest level of corporate governance with the overriding interest of maximising value for its shareholders.

It noted that the appointments of some of its directors which was approved by the National Council and the Securities and Exchange Commission (SEC) does not contravene any law or governance codes while adding the directors were empowered to establish the Scheme further to a resolution of the shareholders at the NSE’s Extra-Ordinary Meeting held on March 3, 2020.

It said that the resolution for the allotment of 200,419,990 ordinary shares of 50 kobo each for the operation of a Long Term Incentive Plan (LTIP) consisting of a Deferred Bonus Plan (DBP) and an Employee Share Purchase Plan (ESPP), was made at the Company’s 2021 AGM on 9 September 2021, for the purpose of operationalising the earlier approval of the establishment of an ESOP in 2020.

“Furthermore, it should be noted that part of the approval granted by the shareholders at the 2021 AGM was for half of the total number of shares proposed for the LTIP being 100,209,995 ordinary shares of 50 kobo each to be purchased by employees under an Employee Share Purchase Plan. Under the terms of the ESPP, the shares will be offered at a discount of between 15 – 20 per cent of its market price and will be purchased by employees subject to the fixed cap per employee and availability of the pool,” it said.

The other half relates to deferred bonus under the Deferred Bonus Plan (DBP), which is earned when eligible employees meet set performance standards annually. Neither the DBP nor the ESPP are gifts to the employees. Both are multi-year plans”.

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Speaking on its intention to raise additional capital of N35 billion, the NGX said the capital is going to fund its business expansion, growth phase for existing business expansion and fund investments in identified and carefully curated new targets, in line with the company’s and NGX group’s strategy.

It added that as captured in the notice of the AGM, the company does not intend to raise the entire amount in dollars.

The Group thereafter said it has also identified viable investment opportunities in line with its strategic expansion plans, including deepening investments in the existing portfolio companies to ensure high and steady dividend returns while adding that it is on course with its long-term strategy which will ensure it provides competitive returns for its investors.

“NGX Group would therefore like to assure the investing public that it will continue to uphold the highest corporate governance standards, as it has historically done. We are extremely mindful of due process, our records are verifiable and we are on course with our long-term strategy execution,” it said.

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