In an official statement, the Nigerian Exchange Group (NGX)
announced the launch of its new platform, emphasizing its commitment to
providing an efficient, user-friendly, and streamlined experience for managing
primary market transactions.
It Is worth noting that the platform’s foundation lies in
the remarkable success of the nation’s inaugural digital public offering in
2021. This groundbreaking initiative attracted an impressive influx of over
150,000 new retail investors, with a significant 75% of these investors being
female and a substantial 85% falling under the age of 40.
The platform's primary objective is to augment transparency
and accessibility within primary market transactions.
In accordance with NGX, the introduction of Invest aligns
with the Central Bank of Nigeria’s banking recapitalization directive,
resulting in numerous subscription offers and rights announcements from
Nigerian banks.
The organization revealed that Access Holdings, FCMB Group,
and Fidelity Bank are leveraging the NGX Invest APIs to disseminate their
offerings to retail investors, with additional banks in the process of
integration.
The Director-General of the Securities and Exchange
Commission, Emomotimi Agama, commended the initiative, stating, “The e-offering
platform aligns perfectly with our objective of future-proofing the Nigerian
capital market. By digitalising and automating financial intermediation
processes, we are fostering a more efficient, transparent, and inclusive
capital market. Our focus is on creating an enabling regulatory environment
that promotes innovation without compromising compliance or investor protection.”
The Group Chairman of NGX Group, Umaru Kwairanga, praised
the regulator, noting, “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.”
In order to achieve Nigeria’s economic development, it is
crucial to incorporate technology, establish strong partnerships, and foster
collaboration, all within a favorable policy environment.
Furthermore, the Group Managing Director and Chief Executive
Officer of NGX Group, Temi Popoola, conveyed his enthusiasm for the new
platform. He emphasized its importance in NGX Group’s digital transformation
journey and its potential to improve market accessibility and promote economic
growth.
“We sincerely appreciate SEC and CBN for their strong
support and leadership. Our intermediaries and partners, including the Central
Securities Clearing System, 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,” he said.
Also, the CEO of NGX, Jude Chiemeka, highlighted the
platform’s transformative potential noting, “NGX Invest addresses the demand
for a more efficient and transparent process in managing public offers and
rights issues.
Jude emphasized that the platform will facilitate and
expedite the reconciliation and allotment processes, thereby reducing the
instances of unclaimed dividends and bolstering investor confidence.
“All stakeholders – including investors, registrars, issuing
houses, brokers, banks, and regulators stand to benefit significantly from this
innovation,” Jude remarked.