The Securities and Exchange Commission (SEC) has approved the Nigerian Exchange Group investment digital platform- ‘NGX Invest’, designed to streamline Public Offerings and Rights Issues in the Nigerian capital market.
According to a press statement from the NGX Group, the digital platform is now live for managing primary market transactions.
“The platform, which has received approval from the Securities and Exchange Commission (SEC), is now live, promising an efficient, convenient, and seamless experience for managing primary market transactions,” the NGX said.
The Exchange noted that the platform represents a significant building on the success of the country’s first digital public offering in 2021 – which attracted over 150,000 new retail investors, 75% of whom were female and 85% under the age of 40.
It added that NGX Invest enhances transparency and accessibility in primary market transactions.
Banking recapitalisation directive
The Exchange said the platform comes at a crucial time, coinciding with the Central Bank of Nigeria’s (CBN) Banking Recapitalisation directive, which has prompted numerous offers for subscription and rights announcements by Nigerian banks.
It noted that both the CBN and SEC have provided robust regulatory support for this initiative, adding Access Holdings Plc and Fidelity Bank Plc are already utilizing the NGX Invest APIs to distribute their offerings to retail investors.
“More banks are in the process of onboarding to leverage this platform,” it said.
What market stakeholders said
Director-General of the Securities and Exchange Commission, Dr. Emomotimi Agama said the e-Offering Platform aligns with our objective of futureproofing the Nigerian capital market.
“By digitalising 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,” he said.
Group Chairman of NGX Group, Alhaji (Dr) Umaru Kwairanga noted that 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,” he said.
Temi Popoola, Group Managing Director/Chief Executive Officer of Nigerian Exchange Group (NGX Group) commended SEC and CBN for their strong support and leadership.
Popoola noted that NGX’s 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 recapitalisation efforts”.
Popoola emphasised that NGX Invest is designed to significantly enhance the efficiency of public offering subscriptions and rights issue processes, streamlining operational workflows to better support issuers’ capital-raising efforts.
Jude Chiemeka, CEO of NGX said that the platform addresses the demand for a more efficient and transparent process in managing public offers and rights issues.
He noted that it will expedite reconciliation and allotment processes, reduce unclaimed dividends, and boost investor confidence.