Securities and Exchange Commission has approved the Nigerian Exchange Group’s Invest, a digital platform meant to facilitate public offerings and rights issues in the capital market.
NGX in a statement noted that the platform, was live, promising an efficient, convenient, and seamless experience for managing primary market transactions, according to The Punch.
It stated that the platform was built on the success of the country’s first digital public offering in 2021, which drew over 150,000 new retail investors, of which 75 percent were female and 85 percent were under the age of 40.
It noted that the platform sought to improve transparency and accessibility in primary market transactions.
According to NGX, the introduction of Invest coincides with the Central Bank of Nigeria’s financial recapitalisation directive, which has resulted to several subscription offerings and rights announcements by Nigerian banks.
The organization revealed that Access Holdings, FCMB Group, and Fidelity Bank were using the NGX Invest APIs to promote their offers to individual investors, with more banks joining.
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.”
He stated that Nigeria’s economic progress would require the integration of technology, solid partnerships, and collaboration, as well as a constructive policy climate.
Meanwhile, the Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola was enthusiastic about the new platform, emphasizing its importance in the NGX Group’s digital transformation path and its potential to improve market access and stimulate 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.
Chiemeka added that the platform would speed up reconciliation and allotment processes, eliminate unclaimed dividends, and increase investor confidence.
“All stakeholders – including investors, registrars, issuing houses, brokers, banks, and regulators stand to benefit significantly from this innovation,” Jude remarked.
