National Wire About Nigerians, Nigerian Business and Other Stories
Nigerian Exchange Group (NGX Group) recently launched NGX Invest, an innovative online platform for the distribution and subscription of public offerings and rights in the Nigerian capital market.
The platform has quickly gained popularity among investors, successfully onboarding a diverse range of participants.
One of the standout features of NGX Invest is its contribution to streamlining the dividend distribution process, which aims to reduce the incidence of unclaimed dividends in Nigeria.
This e-dividend system represents a significant improvement over traditional paper-based method.
Temi Popoola, Group Managing Director/Chief Executive Officer of NGX Group, elaborated on the advantages of the digital solution: “NGX Invest allows investors to designate their preferred account for dividend payments. The system leverages real-time identity verification through NIBSS, transmitting this information directly to the registrar, thereby significantly streamlining the dividend distribution process.”
Popoola further explained the potential of the platform’s integration with the Bank Verification Number (BVN) system: “The integration of BVN with the designated dividend account opens up possibilities for aggregation and consolidation of dividend payments from multiple shares linked to a single BVN. This feature has the potential to greatly enhance efficiency in dividend management.”
This innovative approach to dividend distribution is expected to enhance overall efficiency and convenience for investors. By reducing the need for additional follow-up work typically required in traditional paper offerings, NGX Invest is positioning itself as a game-changer in Nigeria’s capital market.
The e-dividend system is just one of many features designed to improve the experience of stakeholders in the public offerings value chain. As NGX Invest continues to evolve, it promises to play a crucial role in modernizing and streamlining investment processes in Nigeria’s financial markets.
