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The Securities and Exchange Commission (SEC) and Nigerian Exchange Group Plc (NGX Group) have reaffirmed their dedication to the comprehensive digitisation of the capital market, aligning with the transformation strategy outlined in the revised Capital Market Masterplan.
The announcement came during a press briefing and stakeholder engagement session held at the Nigerian Exchange Group House in Lagos on Wednesday, 26 June 2024. Both organisations detailed their collaborative efforts to develop a digital solution aimed at transforming the primary market equity capital-raising process, with a focus on public offers and rights issues.
Subject to SEC approval, this innovative platform 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 and accessibility, faster information dissemination, and seamless compliance with regulatory requirements, among other features.
Dr. Emomotimi Agama, Director-General of SEC, addressed stakeholders, stating: “I would like to commend NGX Group and all partners on this development. This digital transformation initiative is a testament to our shared commitment to fostering an innovative, efficient, and reliable capital market, embedded in the Capital Market Masterplan. By leveraging technology, we can attract the younger generation of investors, enhance regulatory oversight and create a world-class market. This digitisation will play a crucial role in setting a new standard for capital raising in Nigeria and enable the capital market support the achievement of the US$1 trillion economy target of the current administration.”
Temi Popoola, Group Managing Director/Chief Executive Officer of NGX Group, emphasised the platform’s significance, stating, “This platform marks a pivotal moment in the evolution of the Nigerian capital market. With the support of the regulator and our stakeholders, we have developed an end-to-end digitised market infrastructure platform for distributing financial products, in this case 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 aims to boost retail participation in the capital market, promote financial inclusion, and further deepen the pool of available capital. As banks seek to meet their updated minimum capital requirements through the primary markets, SEC and NGX Group have pledged to ensure an end-to-end streamlined process to assist banks and other issuers in achieving their business goals.
The collaborative effort between SEC and NGX Group marks a significant step forward in the modernisation of Nigeria’s capital market infrastructure, promising to enhance efficiency, transparency, and accessibility for all market participants.
[6/27, 10:19 AM] Ben Ameh 2: Agama, Popoola spearhead digital transformation in the capital market
The Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama and the Group Managing Director/Chief Executive Officer, Nigerian Exchange Group Plc, Mr Temi Popoola have reiterated the commitment of both institutions to the digital transformation of the capital market.
At the stakeholder engagement and press briefing held at Nigerian Exchange Group House in Lagos on Wednesday, 26 June 2024, Agama and Popoola spoke on recent efforts to introduce an innovative digital solution for the capital raising process in the market with a focus on public offers and rights issues.
Subject to SEC approval, this innovative platform 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 and accessibility, faster information dissemination, and seamless compliance with regulatory requirements, among other features.
Dr. Emomotimi Agama, Director-General of SEC, addressed stakeholders, stating: “I would like to commend NGX Group and all partners on this development. This digital transformation initiative is a testament to our shared commitment to fostering an innovative, efficient, and reliable capital market, embedded in the Capital Market Masterplan. By leveraging technology, we can attract the younger generation of investors, enhance regulatory oversight and create a world-class market. This digitisation will play a crucial role in setting a new standard for capital raising in Nigeria and enable the capital market support the achievement of the US$1 trillion economy target of the current administration.”
Temi Popoola, Group Managing Director/Chief Executive Officer of NGX Group, emphasised the platform’s significance, stating, “This platform marks a pivotal moment in the evolution of the Nigerian capital market. With the support of the regulator and our stakeholders, we have developed an end-to-end digitised market infrastructure platform for distributing financial products, in this case 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 via 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 modernization of Nigeria’s capital market infrastructure, aiming to improve efficiency, transparency, and accessibility for all participants in the market.
Photo Caption:
L- R show Managing Director/CEO, Central Securities Clearing System (CSCS) Plc, Haruna Jalo – Waziri; Group Chairman, Nigerian Exchange Group Plc, Alhaji (Dr.) Umaru Kwairanga; Director General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama; Group Managing Director/CEO, NGX Group, Mr. Temi Popoola; Ag. CEO, Nigerian Exchange Limited (NGX), Mr. Jude Chiemeka and CEO, NGX Regulation, Mr. Olufemi Shobanjo during the E-Offering Platform Market Engagement and Press Briefing at the Exchange Group House today in Lagos
