NGX Eyes Major Overhaul: Plans for Longer Trading Hours, Potential 5 PM Close to Boost Market Activity

In a move that could transform Nigeria’s capital markets, the Nigerian Exchange Limited (NGX) is exploring extended trading hours from the current 9:30 a.m. to 2:30 p.m. window to a full 9:00 a.m. to 5:00 p.m. session. This proposal, floated by NGX CEO Jude Chiemeka, aims to align the exchange with global standards and accommodate growing retail investor participation.

Background: NGX’s Current Trading Landscape

The Nigerian Exchange Limited, Africa’s second-largest stock exchange, currently operates a compact session from 9:30 a.m. to 2:30 p.m., Monday through Friday, with a pre-close at 2:20 p.m. This short window—lasting just five hours—compresses trading activity, limiting liquidity and opportunities for investors, especially in a digital era where mobile trading dominates.

Historically, NGX (formerly the Nigerian Stock Exchange) has maintained these hours to manage volatility and align with local business rhythms. However, as Nigeria’s economy integrates deeper into global finance, the exchange faces pressure to modernize. Recent market data shows robust activity, with over 555 million shares traded in a single session on September 15, 2025, valued at N24 billion, signaling untapped potential.

The Proposed Changes: From 9:30 a.m.-2:30 p.m. to 9:00 a.m.-5:00 p.m.

NGX’s leadership unveiled the extension idea during a September 16, 2025, Zoom meeting with over 120 market operators, including the Association of Securities Dealing Houses of Nigeria (ASHON). The draft proposal outlines:

• Pre-Open Session: Shift to 9:00 a.m. from the current 9:30 a.m.
• Main Trading: Extend core hours to capture more volume.
• Pre-Close: Move to 4:50 p.m. from 2:20 p.m.
• Market Close: Push to 5:00 p.m. from 2:30 p.m.

This would nearly double trading time to eight hours, mirroring major exchanges like the New York Stock Exchange (9:30 a.m.-4:00 p.m. ET) or Tokyo Stock Exchange (9:00 a.m.-3:00 p.m. JST, with a break). CEO Jude Chiemeka emphasized this as an initial discussion, with further consultations planned involving custodians, brokers, and regulators. Some participants suggested a compromise 3:00 p.m. close to balance workload concerns.

The push comes amid NGX’s collaborations with the International Finance Corporation (IFC) on Islamic finance and the Ministry of Marine and Blue Economy for blue and social bonds, promising more tradable instruments to fill extended sessions.

Stakeholder Reactions: Support and Concerns

Market players welcomed the idea but voiced practical worries. Abimbola Babalola, NGX’s Head of Trading and Products, assured ongoing engagements to address issues like operational costs and trader fatigue. ASHON Chairman Sam Onukwue highlighted the need for infrastructure upgrades to handle longer hours without disruptions.

Brokers noted benefits for retail investors using apps, allowing after-work trading. However, smaller firms raised flags on staffing and compliance burdens. Social media buzz on platforms like X reflects optimism, with users calling it a “game-changer for liquidity,” though some fear increased volatility from extended exposure to news.

Global Context: Why Extended Hours Matter for Emerging Markets

Major exchanges worldwide have lengthened sessions to attract investors. The NYSE’s nine-hour day supports high-volume trading, while India’s NSE runs 9:15 a.m.-3:30 p.m. IST. In Africa, Johannesburg Stock Exchange operates 9:00 a.m.-5:00 p.m. SAST, boosting efficiency. NGX’s plan positions Nigeria competitively, potentially drawing foreign capital amid economic reforms.

Experts predict this could enhance the All-Share Index (ASI), which tracks over 160 equities with a $71.81 billion market cap. Longer hours might reduce compressed volatility, where news hits outside sessions, and foster better price discovery.

Impact on U.S. Investors and Broader Economy

For U.S. readers with stakes in African markets or Nigerian ADRs (like those on NYSE), NGX’s extension means better alignment with New York hours—NGX’s 9:00 a.m. WAT opens at 4:00 a.m. ET, closing at 12:00 p.m. ET—easing real-time monitoring and arbitrage. It could boost cross-border flows, benefiting U.S. funds investing in emerging economies.

Economically, the change supports Nigeria’s $500 billion GDP growth by deepening capital access for firms in tech, energy, and blue economy sectors. For American traders, it enhances diversification opportunities in high-yield African assets, potentially stabilizing portfolios amid U.S. market fluctuations. Increased liquidity might lower spreads, making NGX more attractive for institutional play.

Conclusion: A Step Toward a Vibrant Future for NGX

NGX’s proposal for longer trading hours, potentially closing at 5:00 p.m., signals ambition to evolve into a world-class exchange. While stakeholder input will shape the final form, this reform promises greater accessibility and efficiency for investors. As consultations continue, the move could catalyze Nigeria’s financial markets, offering ripple benefits to global players—watch for official updates in the coming months.

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