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| NGX Group Launches NGX Invest Platform to Revolutionize Public Offerings and Rights Issues in Nigerian Capital Market |
The Nigerian Exchange Group (NGX Group) has introduced a new digital platform called NGX Invest, designed to streamline Public Offerings and Rights Issues in the Nigerian capital market. The platform has received approval from the Securities and Exchange Commission (SEC) and is now live, offering a more efficient and seamless experience for managing primary market transactions.
Key Numbers and Success Metrics
NGX Invest builds on the success of Nigeria’s first digital public offering in 2021, which attracted over 150,000 new retail investors. Notably, 75% of these investors were female, and 85% were under the age of 40, demonstrating the platform's potential to enhance transparency and accessibility in primary market transactions.
Early Adopters and Integration
Access Holdings Plc and Fidelity Bank Plc are among the first to utilize the NGX Invest APIs to distribute their offerings to retail investors. Several more banks are in the process of onboarding to leverage this innovative platform.
Industry Praise and Regulatory Support
Dr. Emomotimi Agama, Director-General of the Securities and Exchange Commission, praised the initiative, stating, “The e-Offering Platform aligns perfectly with our objective of future proofing the Nigerian capital market. By digitalizing and automating financial intermediation processes, we are fostering a more efficient, transparent, and inclusive capital market. At the Commission, our focus is on creating an enabling regulatory environment that promotes innovation without compromising compliance and investor protection. I commend NGX Group for its strategic investment in advancing our capital markets.”
Positive Regulatory Environment
Alhaji (Dr.) Umaru Kwairanga, Group Chairman of NGX Group, acknowledged the regulators, saying, “The supportive regulatory environment has provided a solid foundation that enabled the swift delivery of the platform. This reflects our mutual commitment to market development and will undoubtedly contribute to boosting the participation of retail investors in the capital market. As we strive for the market to play a larger role in Nigeria’s economic development, the integration of technology, strong partnerships, and collaboration, alongside a positive policy environment, will be essential.”
NGX Group’s Commitment to Innovation
Temi Popoola, Group Managing Director/Chief Executive Officer of NGX Group, expressed enthusiasm for the new platform, noting its significance in NGX Group’s digital transformation journey and its ability to enhance market access and foster economic growth. “We sincerely appreciate SEC and CBN for their strong support and leadership. Our intermediaries and partners, including the Central Securities Clearing System (CSCS), have been instrumental in achieving this success. This platform demonstrates our commitment to innovation and strengthening Nigeria’s capital markets, particularly as we support the banking sector’s recapitalization efforts.”
Transformative Potential for Stakeholders
Jude Chiemeka, CEO of NGX, highlighted the platform’s transformative potential: “NGX Invest addresses the demand for a more efficient and transparent process in managing public offers and rights issues. It will expedite reconciliation and allotment processes, reduce unclaimed dividends, and boost investor confidence. All stakeholders – including investors, registrars, issuing houses, brokers, banks, and regulators – stand to benefit significantly from this innovation.”
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