SEC Approves NGX’s Investment Platform

The Securities and Exchange Commission (SEC) has granted approval to the Nigerian Exchange Group (NGX) for its new digital investment platform, ‘NGX Invest’.

This innovative platform is set to streamline public offerings and rights issues, significantly enhancing the efficiency and accessibility of primary market transactions in the Nigerian capital market.

According to a press statement from the NGX Group, the platform, now live, promises an efficient, convenient, and seamless experience for managing primary market transactions.

“The platform, which has received approval from the Securities and Exchange Commission (SEC), is now live, promising an efficient, convenient, and seamless experience for managing primary market transactions,” the NGX said.

The NGX highlighted that this platform builds on the success of Nigeria’s first digital public offering in 2021, which attracted over 150,000 new retail investors, with 75 percent of them being female and 85 percent under the age of 40. ‘NGX Invest’ is expected to further enhance transparency and accessibility in primary market transactions, making it easier for a broader audience to participate.

The launch of ‘NGX Invest’ coincides with the Central Bank of Nigeria’s (CBN) Banking Recapitalisation directive, which has led to numerous subscription offers and rights announcements by Nigerian banks. The NGX noted that both the CBN and SEC have provided robust regulatory support for this initiative. Access Holdings Plc and Fidelity Bank Plc are already utilising the ‘NGX Invest’ APIs to distribute their offerings to retail investors, with more banks in the process of on boarding.

Dr. Emomotimi Agama, Director-General of the SEC, praised the platform as a forward-thinking innovation that aligns with the SEC’s 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. At the commission, our focus is on creating an enabling regulatory environment that promotes innovation without compromising compliance and investor protection. I commend NGX Group for its strategic investment in advancing our capital markets,” he said.

Alhaji (Dr) Umaru Kwairanga, Group Chairman of NGX Group, also expressed his appreciation for the supportive regulatory environment, stating that it provided a solid foundation for 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. As we strive for the market to play a larger role in Nigeria’s economic development, the integration of technology, strong partnerships, and collaboration, alongside a positive policy environment, will be essential,” he said.

Mr. Temi Popoola, Group Managing Director and Chief Executive Officer (CEO) of NGX Group, commended the SEC and CBN for their strong support and leadership. He emphasised that NGX’s intermediaries and partners, including the Central Securities Clearing System (CSCS), were 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. NGX Invest is designed to significantly enhance the efficiency of public offering subscriptions and rights issue processes, streamlining operational workflows to better support issuers’ capital-raising efforts,” he said.

Meanwhile, Mr. Jude Chiemeka, CEO of NGX, noted that the platform addresses the demand for a more efficient and transparent process in managing public offers and rights issues. He stated that it will expedite reconciliation and allotment processes, reduce unclaimed dividends, and boost investor confidence.

The launch of ‘NGX Invest’ marks a significant milestone in the digital transformation of Nigeria’s capital market. By leveraging technology to simplify and enhance the process of public offerings and rights issues, the NGX Group is positioning itself at the forefront of market innovation, fostering a more inclusive and dynamic investment environment for all stakeholders.