The Nigerian Exchange Limited has said a top priority for the nation’s bourse at this time is to improve the ease of access to investment opportunities for all classes of investors.
Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr. Temi Popoo, who spoke at the Nigeria Tech/FinTech Conference hosted by Renaissance Capital, said the Exchange is considering a review of its rules and market structures to enhance the competitiveness of the Nigerian market to attract more foreign investors.
According to him, the Exchange would review its rules and groupings of stocks and listing preconditions attached to such in order to position the market as a hub for the emerging startups in the technological sector.
He said, while the NGX has made laudable achievements in digitisation and digitalisation so far, its next phase of growth is now massive digital transformation and repositioning of the market to attract investors in the tech space, most of whom are foreign investors.
He pointed out that by looking at the listing opportunities within the technology ecosystem, it is clear that capital is being formed and it is imperative for NGX to begin to facilitate this.
He added that while a lot of funding in this technology sector happens at the earlier stages, NGX is undeterred by the fact that listing typically happens at the more mature stages of capital raising.
“Already, NGX has the Growth Board which is home to fast-growing companies, but we recognise that there is more to be done.
Our approach is to begin to relook our rules and boards that may not necessarily be acceptable to players within the technology industry.
We see that capital being raised in this space is mostly foreign, and we want to position ourselves to be more accommodating of the evolving landscape whilst developing the right market architecture,” Popoola said.
He outlined several technological strides made by the NGX noting that the Exchange has continued to leverage on its technological advancement to ensure unhindered trading and operations throughout the lockdowns and disruptions occasioned by COVID-19.
“If you think about the Exchange, our interaction with technology will be around digitisation, digitalisation and digital transformation.
What you will find is that we are extremely digitised and digitalised both internally and the way stakeholders consume our products and services.”, Popoola said.
He said the next phase for the Exchange is a more digital transformation where it can ensure that the last-mile delivery of its products and services is digitised and consumed through technology.
He noted that the Fintech ecosystem has increased awareness around the capital market and the opportunities in personal investing, adding that the NGX would now look again at the landscape and begin to leverage advancements that will help the capital raising, trading and settlement processes to democratise finance in Nigeria.