The Securities and Exchange Commission has granted its approval to the Nigerian Exchange Group’s Invest, a digital platform developed to enhance the efficiency of public offerings and rights issuances within the capital market.

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.