The Securities and Exchange Commission (SEC) has approved the Nigerian Exchange Group’s (NGX) new digital platform, NGX Invest, designed to streamline public offerings and rights issues in the capital market.
In a statement to PUNCH, NGX announced that the platform is live, promising an efficient, convenient, and seamless experience for managing primary market transactions.
The platform builds on the success of Nigeria’s first digital public offering in 2021, which attracted over 150,000 new retail investors, with 75% being female and 85% under 40.
NGX noted that NGX Invest aims to enhance transparency and accessibility in primary market transactions. The launch coincides with the Central Bank of Nigeria’s banking recapitalisation directive, leading to numerous subscription offers and rights announcements by Nigerian banks.
Access Holdings, FCMB Group, and Fidelity Bank are currently using the NGX Invest APIs to distribute their offerings to retail investors, with more banks in the process of onboarding.
SEC Director-General Emomotimi Agama praised 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.”
NGX Group Chairman Umaru Kwairanga commended the supportive regulatory environment, noting it enabled the swift delivery of the platform. He highlighted the importance of technology, strong partnerships, and a positive policy environment in Nigeria’s economic development.
NGX Group Managing Director/CEO Temi Popoola expressed enthusiasm for NGX Invest, stressing its significance in NGX Group’s digital transformation journey and its potential to enhance market access and foster economic growth. He thanked SEC and CBN for their support and leadership, emphasizing the platform’s role in strengthening Nigeria’s capital markets, particularly in supporting the banking sector’s recapitalisation efforts.
NGX CEO 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.” He added that the platform would 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,” Jude remarked.
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