Nigeria’s Securities and Exchange Commission (SEC) and the Nigerian Exchange Group Plc (NGX Group) have reaffirmed their dedication to the comprehensive digitisation of the capital market, aligning with the transformation strategy outlined in the revised Capital Market Master plan.
The two organisations announced at a press briefing and stakeholder engagement session on Wednesday in Lagos that they were collaborating to develop a digital solution aimed at transforming the primary market equity capital-raising process, with a focus on public offers and rights issues.
Subject to SEC approval, this innovative platform represents a significant advancement in digitising the capital raising process for Issuers.
They stated that the stakeholders are expected to benefit from enhanced efficiency, streamlined due diligence capabilities, ease of use and accessibility, faster information dissemination, and seamless compliance with regulatory requirements, among other features.
Addressing the stakeholders, the Director-General of SEC, Dr. Emomotimi Agama, said: “I would like to commend the NGX Group and all partners on this development. This digital transformation initiative is a testament to our shared commitment to fostering an innovative, efficient, and reliable capital market, embedded in the Capital Market Masterplan. By leveraging technology, we can attract the younger generation of investors, enhance regulatory oversight and create a world-class market.
“This digitisation will play a crucial role in setting a new standard for capital raising in Nigeria and enable the capital market support the achievement of the US$1 trillion economy target of the current administration.”
In his speech at the event, the Group Managing Director/Chief Executive Officer of NGX Group, Mr. Temi Popoola, emphasised the platform’s significance, stating that “This platform marks a pivotal moment in the evolution of the Nigerian capital market. With the support of the regulator and our stakeholders, we have developed an end-to-end digitised market infrastructure platform for distributing financial products, in this case public offers and rights issues. I can assure the investing public that robust payment systems, comprehensive Know Your Customer protocols, and strong fraud and risk management measures are fully integrated, also ensuring standard capital market intermediation is upheld without compromise.”
The digital platform aims to boost retail participation in the capital market, promote financial inclusion, and further deepen the pool of available capital. As banks seek to meet their updated minimum capital requirements through the primary markets, SEC and NGX Group have pledged to ensure an end-to-end streamlined process to assist banks and other issuers in achieving their business goals.
The collaborative effort between SEC and NGX Group marks a significant step forward in the modernisation of Nigeria’s capital market infrastructure, promising to enhance efficiency, transparency, and accessibility for all market participants.
GIK/APA
SEC, NGX Group reinforce commitment to capital market digital transformation
