Authors : Nengean Tersugh; Edward Ogbonnia Eleje

Volume/Issue : Volume 11 - 2026, Issue 7 - July

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DOI : https://doi.org/10.38124/ijisrt/26jul1855

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Abstract : This study examined the effect of demutualization on the financial performance of the Nigerian stock market by comparing the pre-demutualization period (March 2017–February 2021) with the post-demutualization period (March 2021–February 2025). Specifically, the study investigated the impact of equity stock and debt stock on market capitalization before and after the transformation of the Nigerian Stock Exchange into the Nigerian Exchange Group Plc. Ex post facto research design was adopted, while secondary data were obtained from the weekly reports of the Nigerian Stock Exchange/Nigerian Exchange Group. Autoregressive Distributed Lag (ARDL) model was employed for data analysis after the variables were tested for stationarity using the Augmented Dickey-Fuller unit root test. The results indicated that all variables were stationary at level or first difference, justifying the application of the ARDL technique. Findings revealed that equity stock had no statistically significant impact on market capitalization in both the pre- and postdemutualization periods. Similarly, debt stock exhibited no significant influence on market capitalization before and after demutualization. Although the post-demutualization period recorded slight improvements in the direction of some coefficients, these changes were not statistically significant. The study concluded that the 2021 demutualization of the Nigerian Stock Exchange has not yet translated into significant improvements in market capitalization through equity and debt market activities. The study recommends that the Nigerian Exchange Group strengthen equity financing through continuous reinvestment and strategic capital formation while promoting the development of the debt market to improve overall market performance and long-term financial sustainability

Keywords : Demutualization, Financial Performance, Market Capitalization, Equity Stock, Debt Stock.

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