NGX CEO plans tokenisation of nigerian assets to attract Gen Z, Millennials

The Chief Executive Officer of the Nigerian Exchange Limited (NGX), Mr. Jude Chiemeka, has highlighted the tokenisation of Nigerian assets as a key strategy to attract Gen Z and Millennial investors to the Nigerian stock market.

Speaking at the 2024 Investor Summit & Awards Dinner organised by Emerging Africa on December 18, 2024, Mr. Chiemeka explained that younger investors are typically drawn to financial products offering higher returns compared to traditional assets such as stocks and bonds.

To cater to this shift in investor preferences, the NGX is exploring innovative solutions, including a blockchain-like interface, to make investing easier, faster, and more appealing.

“Gen Zs and Millennials may not find assets with 40% returns exciting enough. They are more drawn to opportunities that promise double or triple those returns,” he noted.

He also pointed to the increasing activity in retail trading, with $7 million worth of transactions occurring daily on the exchange.

In terms of improving market liquidity, the CEO pointed to strategies such as efficient market-making, securities lending, and boosting retail participation. These efforts aim to bring the NGX in line with international market standards.

Mr. Chiemeka also emphasised the potential of derivatives trading, which could help investors manage risks and further enhance liquidity. Through these efforts, the NGX aims to modernise the market and remain competitive on a global scale.

The Nigerian stock market, as tracked by the All-Share Index, has delivered a year-to-date return of 34.38%, maintaining its bullish momentum from 2023 into 2024. January saw the index surge by 35%, driven by high trading volumes, while February saw a slight pullback.

A recovery in March pushed the index above 104,000 points. April saw a dip due to recapitalisation efforts, but by September, the index began a steady recovery, surpassing 100,000 points in December.

As of December 19, the All-Share Index remains strong, opening above 100,400 points, indicating resilience and renewed investor interest as the year draws to a close.

Emerging Africa Group, the organiser of the Investor Summit & Awards Dinner, is a firm focused on Environmental, Social, and Governance (ESG) principles, providing investment services and facilitating transactions for high-net-worth individuals, businesses, and governments across Africa.