NGX digital investment platform gets SEC approval

Securities and Exchange Commission has approved the Nigerian Exchange Group’s Invest, a digital platform designed to streamline public offerings and rights issues in the capital market.

In a statement made available to the PUNCH, the NGX noted that the platform, was live, promising an efficient, convenient, and seamless experience for managing primary market transactions.

It stated that the platform was built on the success of the country’s first digital public offering in 2021, which attracted over 150,000 new retail investors, with 75 per cent being female and 85 per cent under the age of 40.

It noted that the platform aimed to enhance transparency and accessibility in primary market transactions.

According to NGX, the launch of Invest coincides with the Central Bank of Nigeria’s banking recapitalisation directive, which has led to numerous subscription offers and rights announcements by Nigerian banks.

The organisation disclosed that Access Holdings, FCMB Group, and Fidelity Bank were utilising the NGX Invest APIs to distribute their offerings to retail investors, with more banks in the process of onboarding.

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 added that the integration of technology, strong partnerships, and collaboration, alongside a positive policy environment, would be essential to Nigeria’s economic development.

Also, the Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola, expressed enthusiasm for the new platform, stressing its significance in NGX Group’s digital transformation journey and its potential to enhance market access and foster 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.

Jude stated that the platform would expedite reconciliation and allotment processes, reduce unclaimed dividends, and boost investor confidence.

“All stakeholders – including investors, registrars, issuing houses, brokers, banks, and regulators stand to benefit significantly from this innovation,” Jude remarked.