NGX digital investment platform receives SEC approval
By Esther Agbo
The Securities and Exchange Commission (SEC) has given the green light to the Nigerian Exchange Group’s digital investment platform, NGX Invest, designed to simplify public offerings and rights issues in the capital market.
The NGX in a statement highlighted that the platform is now live, offering a more efficient, convenient, and seamless experience for managing primary market transactions. The platform builds on the success of Nigeria’s first digital public offering in 2021, which drew over 150,000 new retail investors, with 75 percent being female and 85 per cent under the age of 40.
NGX emphasised that the platform is designed to improve transparency and accessibility in primary market transactions. The launch of NGX Invest aligns with the Central Bank of Nigeria’s banking recapitalization directive, prompting numerous subscription offers and rights announcements by Nigerian banks.
Access Holdings, FCMB Group, and Fidelity Bank are already utilising the NGX Invest APIs to distribute their offerings to retail investors, with additional banks in the process of joining.
The Director-General of the SEC, Emomotimi Agama, praised the initiative, he said, “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, lauded the regulator.
“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.
He emphasised that technology integration, strong partnerships, and collaboration, combined with a positive policy environment, are crucial to Nigeria’s economic development.
Furthermore, the Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola, expressed enthusiasm for the new platform, highlighting its significance in NGX Group’s digital transformation journey and its potential to improve market access and foster economic growth.
He stated that, “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.”
Additionally, NGX CEO, Jude Chiemeka emphasised the platform’s transformative potential, stating, “NGX Invest addresses the demand for a more efficient and transparent process in managing public offers and rights issues.”
He noted that the platform would speed up reconciliation and allotment processes, reduce unclaimed dividends, and enhance investor confidence. “All stakeholders – including investors, registrars, issuing houses, brokers, banks, and regulators stand to benefit significantly from this innovation.”
