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Tag: NGX

  • NGX tightens brokers’ rules to enhance investors’ protection

    NGX tightens brokers’ rules to enhance investors’ protection

    The NGX Regulation Limited (NGX RegCo)- the self-regulatory body that regulates activities at the Nigerian Exchange (NGX), has launched a code of conduct for officials of dealing members in a bid to strengthen investors’ protection.

    The “Code of Conduct for Approved Persons of Trading License Holders, approved by Securities and Exchange Commission (SEC) on August 16, 2023, will take effect on October 3, 2023.

    Chief Executive Officer, NGX Regulation Limited (NGX RegCo), Ms Tinuade Awe said the code underlined NGX’s commitment to promoting high professional standards and ethical conduct within the capital market.

    According to her, the primary objective of the code is to establish and uphold acceptable standards of behaviour, thereby fostering professionalism, integrity, and fairness in the interactions of approved persons with clients, employers, employees, regulators, and other relevant stakeholders.

    “This commitment is poised to bolster investor confidence and pave the way for a sustainable and thriving market. The code emphasises high professional standards, reasonable skill, care, and prudence, as well as adherence to ethical and practical standards. Furthermore, it highlights the expected standards and values that Approved Persons must display at all times when conducting their businesses at all times.

    “At NGX RegCo, we understand the profound impact that a strong ethical foundation can have on the integrity and sustainability of the capital market,” Awe said.

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    She pointed out that the code of conduct was an important step towards further strengthening a market where confidence is essential, urging trading licence holders’ approved persons to fully embrace the code by demonstrating their commitment to best and fair practises and the highest professional standards.

    “These are critical factors for establishing a market based on honesty and accountability, which will promote market depth, growth, and economic development,” Awe said.

    Head, Broker Dealer Regulation, NGX RegCo, Mr. Olufemi Shobanjo, added that the code reflected ongoing efforts to improve the regulatory framework of the Nigerian capital market.

    “We strongly encourage all approved persons of trading licence holders to familiarise themselves with the code and ensure its implementation and compliance within their organisations.

    “At NGX RegCo, we stand ready to guide and support all stakeholders to ensure the smooth and hitch-free adoption of the code, thereby cementing the foundation for a more robust and ethical capital market in Nigeria,” Shobanjo said.

  • Fed Govt, NGX, others to partner on tech startups listing

    Fed Govt, NGX, others to partner on tech startups listing

    The Federal Government would work with the Nigerian Exchange (NGX) and other capital market operators to open up stronger funding channels and encourage listing of tech startups at the stock market.

    Stakeholders in the capital market and the government agreed on the need for collaboration across the private and public sectors to stimulate the growth of Nigeria’s emerging technology industry.

    Experts, who spoke during a tech event themed “Invest in Africa’s Future- Let’s talk about exits”, were unanimous that the technology innovation sector offers significant opportunities for the country.

    The tech event was a joint initiative of the Ministry of Communications, Innovation and Digital Economy, NGX, and Future Africa. It was also supported by Stanbic IBTC, CardinalStone Partners and Chapel Hill Denham. The event was held on the sidelines of the United Nations General Assembly, in New York, United States.

    Minister of Communications, Innovation and Digital Economy, Bosun Tijani, said Nigeria had been grappling with its over dependence on oil in the last few years, adding that diversifying from heavy reliance on a single sector like the oil industry often requires increasing productivity in other sectors.

    According to him, diversification can be achieved through the application of technology and innovation, something the leadership of President Bola Tinubu is particular about.

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    He said the Ministry will work on creating a regulatory environment for fintechs, access to funding, especially from angel investors, improve digital infrastructure, facilitate the export of tech products and services and collaborate with NGX on tailored listing options for startups via its technology board.

    “We cannot do all of this as a country if we do not prioritise innovation and encourage entrepreneurs to build. Nigeria is now open to investments. We want to prioritise the ability of our technology companies to export products and we are targeting Africa first and then eventually start selling to the rest of the world,” Tijani said.

    Chief Executive Officer, Nigerian Exchange (NGX), Temi Popoola, said the Exchange would support the agenda of the government in unleashing the potential of the economy.

    He noted that technology is a big enabler of the capital market, assuring that the NGX is keen on fostering innovation in the capital market, potentially to attract a larger pool of investors and mature tech companies to list on its platform.

    “We will continue to do a lot of work that makes us able to attract local capital and the day tech start-ups come to the exchange, we are confident that there would be very good audience of investors that would want to own a bit of their shares. This is what we at NGX are doing by removing all barriers for that to happen,” Popoola said.

    Chief Executive Officer, Flutterwave, Olugbenga Agboola said his company has focused on the Nigeria project since inception with most of its investible capital deployed to Nigeria.

    He added that the company would be looking at tapping opportunities created by the markets to scale and further deliver value to its customers and investors.

    Chief Executive Officer, Chapel Hill Denham, Mr Bolaji Balogun underscored the importance of domesticating the values being created by Nigerian fintechs and other startups in the country through listing and popular participation by Nigerians.

    He expressed optimism that with the commitments of all stakeholders, Nigerian investment community would get the opportunity to participate in the capital formation going on in the tech sector, rather than all the intellectual property that will emanate from it being controlled by foreign markets.

  • Stock Exchange mulls private issuance market for non-listed companies

    Stock Exchange mulls private issuance market for non-listed companies

    The Nigerian Exchange (NGX) is considering launching a private issuance market that allows non-listed companies to raise capital and conduct other transactions through the Exchange’s platform.

    Chief Executive Officer, Nigerian Exchange (NGX), Mr. Temi Popoola, said the Exchange has started discussions with the Securities and Exchange Commission (SEC) on the launch of private markets to enable the Exchange do business with non-listed companies.

    According to him, most emerging sectors such as the fintechs and other startups have shown preference for private capital.

    He pointed out that the demand for private capital outweighs public capital, thus the consideration of a private market for non-listed companies like startups.

    The private market initiative is part of NGX’s efforts to access the vast growth potential in Nigeria’s tech startups and other companies, most of which prefer private capital investments.

    Tech start-ups in Nigeria and other parts of the African continent had raised over $1.3 billion in first quarter of the year. One of them, Shuttlers, Nigeria’s leading tech-enabled, scheduled mass transit company, raised an additional $4 million in equity funding to accelerate the growth of its transportation solution.

    Shuttlers has raised a combined $5.6 million. Shuttlers has achieved remarkable traction, growing its fleet by 150 per cent and expanding its routes by 25 times, with a 280 per cent increase in passengers moved daily. The company has already built a loyal customer base in Lagos and is rapidly expanding its services to other cities in Nigeria.

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    The NGX had set up a digital and technology products advisory panel as part of efforts to advance its digital transformation agenda.

    The panel provides a forum for the Exchange to interact with the capital market community and the fintech ecosystem to enhance and increase NGX’s digital product offerings.

    SEC had approved the rules for listing on the NGX Technology Board  last December, to encourage investments in indigenous technologically inclined companies within Nigeria and across Africa by providing greater visibility to these companies.

    NGX also plans to launch Non-Depository Receipts (NDR) to part of innovations to deepen the Nigerian capital market.

    The NDR is expected to grant the   public access to financial instruments listed on an offshore exchange and provide investors with access to alternate investment schemes.

    Under the arrangements, asset managers will sponsor the instrument offshore, convert the receipts and sell off in the market.

  • NGX, UN Women partner on gender bonds

    NGX, UN Women partner on gender bonds

    Nigerian Exchange (NGX) and United Nations Women (UN Women) will partner on the integration of gender bonds and other gender-themed sustainable financing mechanisms as strategic instruments to drive gender equality and sustainable development in Nigeria.

    This was deliberated yesterday in Lagos at a high-level engagement between NGX and UN Women officials during the visit of Dr. Maxime Houinato, Regional Director for East and Southern Africa Region (ESARO) and interim Regional Director for West and Central Africa Region (WCARO), to the Exchange.

    During the engagement, the parties spoke on the need to galvanize public and private sector stakeholders to the development and adoption of gender responsive instruments in Nigeria’s capital market and the mobilization of public and private capital towards investments that promote gender equality outcomes, among other focus areas.

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    Divisional Head, Business Support Services and General Counsel, Nigerian Exchange (NGX), said the Exchange was committed to collaborating with UN Women to further deepen impact in the capital market and broader private sector.

    “UN Women has been on the forefront of female advocacy which is a major priority of the work we have been doing with International Finance Corporation on the Nigeria2Equal project,” Robinson-Ayanwale said.

     Head, Product Development, Nigerian Exchange (NGX), Chidinma Chukwueke-Okolo, said the collaboration with UN Women will primarily impact capacity building for issuers and investors, specifically for the development of a framework for gender bonds issuance in the Nigerian capital market.

    Houinato stressed the importance of female participation in the leadership in the private and public sectors.

    Houinato emphasized the necessity of more men in the private sector driving the advocacy for women and also touched on UN Women’s work on female advocacy.

  • NGX, LCCI mull partnership on private sector development

    NGX, LCCI mull partnership on private sector development

    LCCI honoured on 135th anniversary

    The Nigerian Exchange (NGX) and Lagos Chamber of Commerce and Industry (LCCI) yesterday agreed to strengthen their working relationship with a view to developing action plans that enhances the growth of Nigerian businesses.

    The two institutions said they would soon work out a Memorandum of Understanding (MoU) detailing greater areas of cooperation and partnership, especially in the areas of access to finance, corporate governance and listing.   

    The agreement came as the NGX honoured LCCI with a closing gong ceremony in celebration of the 135th anniversary of the foremost business group.

    Chief Executive Officer, Nigerian Exchange (NGX), Temi Popoola, said NGX and LCCI have common interest in promoting advantages of listing for non-listed corporates, regulatory compliance, governance, and knowledge sharing.

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    He highlighted NGX’s plan to leverage technology to engage millions of Nigerians in the market.

    He drew parallels with the banking industry’s success in acquiring millions of customers through digitization and fintech collaborations, indicating NGX’s readiness to partner with Fintechs to increase retail investor participation.

    He noted that NGX remains committed to building a thriving market and promoting innovative solutions that provide a globally competitive platform for issuers to raise capital, and investors to meet their financial objectives.

    “This commitment drives the Exchange to continuously seek strategic partnerships with key stakeholders,” Popoola said.

    President, Lagos Chamber of Commerce and Industry (LCCI), Dr. Michael Olawale-Cole, expressed enthusiasm about collaborating closely with NGX.

    “We will work on signing an MoU; including developing action plans and timelines for a more vibrant partnership for the sustainable development of the Nigerian capital market,” Olawale-Cole said.

    He commended NGX for its achievements and reiterated LCCI’s commitment to working together to enhance the exchange’s operations.