NGX Delays New Pricing Methodology Launch Amid Reforms

The Nigerian Exchange (NGX) has postponed the launch of its new pricing methodology, which was scheduled for August, following requests from market participants for additional time to absorb the impact of recent reforms, particularly the transition to a T+1 settlement cycle. Capital market operators expressed concerns that the simultaneous reforms could complicate implementation and urged the NGX to allow the market to adjust to existing changes before introducing new operational adjustments.

The Securities and Exchange Commission (SEC) directed the NGX to conduct wider stakeholder consultations for approximately three months before proceeding. The new pricing methodology aims to address liquidity and price-discovery challenges caused by highly priced equities.

Market experts, including David Adonri and Charles Fakrogha, emphasized the need for sequencing in reforms, especially with the Dangote Refinery's N2.15 trillion IPO set to open on September 14. Abiodun Ogunniyi suggested considering the methodology later in the year, while Aruna Kebira warned about potential volatility from foreign portfolio inflows.