Recapitalisation: NGX Group Floats Electronic Public Offering Platform 

Kayode Tokede

As banks commence capital raising exercise on the back of Central Bank of Nigeria (CBN) directive, the Securities and Exchange Commission (SEC) and Nigerian Exchange Group have championed innovative digital solutions for the capital raising process with a focus on public offers and rights issues.

Subject to the Commission approval, the 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.

At a stakeholder engagement and press briefing held at Nigerian Exchange Group, yesterday in Lagos, The Director-General, SEC, Dr Emomotimi Agama stated that, “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 to support the achievement of the $1 trillion economy target of the current administration.”

In his opening remarks, the Group Chairman of NGX Group, Alhaji (Dr) Umaru Kwairanga stated that the current strategy for the Group is to improve and deepened digital infrastructure, stressing on the need to maintain its position as a World   Class organization in terms of staff quality, welfare, technology and customer service.   

“With respect to all these objectives, we recently launched a digital platform for primary market offers which can be easily and seamlessly accessed from the handsets and tablets of millions of new and existing investors. This is coming at a time when the CBN has directed banks to increase their capitalization, which will broaden the reach of our market  and introduce millions of younger Nigerians to the capital market,” he said.

The Group Managing Director/Chief Executive Officer, Nigerian Exchange Group Plc, Mr Temi Popoola 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.