• Eyes full digitisation of capital operation
The Securities and Exchange Commission (SEC) and Nigerian Exchange Group Plc (NGX Group) have restated their commitment to fully digitise the capital market and revolutionise the process of raising capital in the primary market.
The initiative is in line with the transformation goal specified in the updated capital market masterplan, the duo said.
At a press conference and stakeholder engagement held at the Nigerian Exchange Group House in Lagos, yesterday, both entities outlined their joint initiatives to create a digital platform designed to revolutionise the process of raising equity capital in the primary market, with a particular emphasis on public offerings and rights issues.
Subject to SEC approval, the innovative platform created by NGX Group represents a significant advancement in digitising the capital-raising process for issuers.
Stakeholders are expected to benefit from enhanced efficiency, streamlined due diligence capabilities, ease of use, accessibility, faster information dissemination and seamless compliance with regulatory requirements among other features.
Director-General of SEC, Dr Emomotimi Agama said the digital transformation initiative is a testament to shared commitment to fostering an innovative, efficient, and reliable capital market, embedded in the capital market masterplan.
According to him, the nation’s capital market would attract the younger generation of investors, enhance regulatory oversight and create a world-class market through the deployment of robust technology.
In addition, he said the digitisation would play a crucial role in setting a new standard for capital raising in Nigeria and enable the market to support the achievement of the $1 trillion economy target of the current administration.
Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola, said the platforms mark a pivotal moment in the evolution of the Nigerian capital market.
He pointed out that with the support of the regulator and market stakeholders, the exchange has developed an end-to-end digitised market infrastructure platform for distributing financial products, in the case of 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 is designed to increase retail engagement in the capital market, enhance financial inclusion, and expand the available capital pool.
As banks aim to fulfill their revised minimum capital requirements through primary markets, the SEC and NGX Group have committed to facilitating a seamless process to help banks and other issuers meet their business objectives.
This partnership between the SEC and NGX Group represents a major advancement in the modernisation of Nigeria’s capital market infrastructure, to improve efficiency, transparency, and accessibility for all participants in the market.
