Economy
NGX Considers Dollar Settlement Platform for Fintechs
By Aduragbemi Omiyale
Efforts are being made by the Nigerian Exchange (NGX) Limited to create a Dollar settlement platform for financial technology (fintech) companies in the country.
The Divisional Head of Capital Markets at the NGX, Mr Jude Chiemeka, disclosed that this platform is being designed in collaboration with the Central Securities Clearing System (CSCS) Plc and Euroclear.
He said this dollar settlement platform would enable tech startups to raise in dollars and create opportunities for domestic investors to have access to their shares and at the same time, contribute to the growth of the Nigerian economy through democratization of capital formation.
Mr Chiemeka, while speaking at the Annual A&O Fintech webinar themed Fueling Fintech: The Power of Capital, the Role of Regulation, noted that although public markets are viable options for raising capital, fintechs have preferably opted for private markets because of the regulatory rule of disclosure and stricter governance requirements that is necessary for listing publicly.
He explained that to address this issue, NGX received approval from the Securities and Exchange Commission (SEC) to launch a technology board for fintechs and tech companies to raise capital.
The capital market expert stressed that the tech board is geared at encouraging tech firms to come to the market and raise capital in local currency, which would prove beneficial amid the high-interest rate environment that had made foreign investors hawkish.
Whilst stating that the issue of settlements may discourage fintechs from accessing capital in US dollars on the public market, Mr Chiemeka revealed that the Exchange was working on a partnership that is directed at fixing that problem.
“NGX is working with CSCS and Euroclear to create a dollar settlement platform that allows tech companies (start-ups or existing ones) to raise capital in dollars.
“We have reviewed listing procedures for tech companies who want to list. Requirements around number of shareholders, and years of operation, among others, have been relaxed to catalyse these listings,” he said.
Owing to the high-interest rate environment, Mr Chiemeka said that domestic investors had been allocating their Assets under Management (AuM) to majorly FGN bonds.
He further revealed that there had been more outflows than inflows from FPIs and that had impacted the performance of equities in recent times, especially as regards volume and value of transactions, calling on the present administration to eke out deliberate and enabling policies to drive listings on the exchange’s platform.
“The government needs to be deliberate on policies that will encourage corporates to list and now that it is thinking of creating palliatives due to the removal of subsidy, they can also consider those that will incentivise companies to list and see the domestic capital markets as choice platforms to raise capital.
“Publicly traded companies pay more taxes and are better governed so there is an upside for government in driving more listings. This will go a long way to encourage these institutions to look into the local markets,” Mr Chiemeka said.
By Adedapo Adesanya
Nigeria’s first-ever domestic US Dollar bond has been named as the West Africa Deal of the Year at the 2025 Global Banking & Markets Africa Awards, following a highly successful issuance that raised $917 million.
Announced by the Debt Management Office (DMO) on August 19, 2024, the bond initially targeted $500 million but was oversubscribed by 180 per cent.
The raise came with a five-year tenor and was listed on both the Nigerian Exchange (NGX) and FMDQ Securities Exchange.
The landmark issuance attracted a broad spectrum of investors, including local institutions, diaspora Nigerians, and international players. Africa Finance Corporation (AFC) served as Global Coordinator.
The Ministry of Finance said in a statement on X, formerly Twitter, that the Minister of State for Finance, Mrs Doris Uzoka-Anite, received the award at the Bonds, Loans & ESG Capital Markets Conference in Cape Town, South Africa.
She formally presented it to the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun in his office in Abuja on Thursday.
“This award marks an important step in our ambition to position Nigeria—and Lagos—as a leading international financial centre,” Mr Edun said.
“It also reflects growing confidence in the expertise and resilience of Nigeria’s financial system, which has once again delivered under challenging global conditions”, the Minister affirmed.
The ministry noted that the prestigious award underscores Nigeria’s commitment to developing its capital markets, improving its investment landscape, and attracting foreign investment, adding that it is also a testament to the country’s potential for economic growth and its determination to become a leading international financial centre.
By Adedapo Adesanya
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has cautioned refinery operators against importing substandard crude oil, following the expiry of the Naira-for-crude deal.
In a statement signed by its National Public Relations Officer, Mr Joseph Obele, the association said imported crude must meet global standards to ensure the production of high-quality petroleum products.
The group stressed that Nigerian crude oil, classified as Sweet Crude due to its low sulfur content of less than 0.5 per cent – ranks among the best in the world, and importation possess a high risk.
“We see no reason why imported crude oil should be of lower standards. The importation of substandard crude oil will compromise the quality of petroleum products, undermine the growth of Nigeria’s oil and gas industry, and ultimately harm consumers.”
PETROAN also expressed concern over speculations that petroleum product prices may rise following the expiration of the naira-for-crude arrangement and called for continued access to imported refined petroleum products to stabilize prices and ensure energy sufficiency.
“The permutations in the media that petroleum prices might increase as the Naira-for-crude deal comes to an end is a serious concern to PETROAN. In order to avoid this scenario, we advocate that the window for importing refined petroleum products should remain open.”
The group urged regulatory agencies to conduct rigorous laboratory testing on all crude oil imports to verify their quality.
“We call on regulatory agencies to be on high alert and conduct thorough laboratory analysis on all crude oil imports to ensure they meet the required standards. We also urge the relevant authorities to ensure that refinery operators adhere to the highest operational standards.”
The association further called on the Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, to conduct a comprehensive review of the Naira-for-crude initiative to determine the next steps in Nigeria’s energy sector.
“The reforms introduced by the Petroleum Industry Act, PIA, encourage competition in the downstream sector. Competition is a catalyst for price reduction in any sector. We believe that as the market adjusts to the new realities, prices will stabilize and eventually decrease.”
PETROAN also announced plans to conduct independent laboratory testing on refined petroleum products.
“We will conduct laboratory testing on refined petroleum products to determine which refinery or depot our members should buy from. This is to ensure that our members and the Nigerian public are not sold substandard products.”
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange bounced back on Thursday, April 3 from its previous day’s loss, gaining 0.24 per cent at the close of business.
This increased the NASD Unlisted Security Index (NSI) by 7.78 points to 3,316.34 points from the preceding trading day’s 3,308.46 points and raised the portfolios of unlisted securities investors by N4.55 billion as the market capitalisation ended at N1.915 trillion compared with Wednesday’s N1.910 trillion.
This growth occurred after the bourse finished with three price gainers and one price loser, IPWA Plc, which shed 5 Kobo to end at 50 Kobo per share, in contrast to midweek’s value of 55 Kobo per share.
Business Post reports that FrieslandCampina Wamco Nigeria Plc gained N2.16 to close at N38.66 per unit versus N36.50 per unit, First Trust Microfinance Bank Plc appreciated by 2 Kobo to 58 Kobo per unit from 56 Kobo per unit, and Food Concepts Plc rose by 1 Kobo to N1.18 per share from N1.17 per share.
Data indicated that there was a decrease of 95.9 per cent in the volume of securities bought and sold by the market participants to 372,568 units from the 9.1 million units transacted in the previous trading day.
Equally, the value of transactions slid by 43.7 per cent to N4.1 million from N7.2 million, and the number of deals went up by 81.8 per cent to 40 deals from 22 deals.
When the market ended for the session, Impresit Bakolori Plc was the most active stock by volume on a year-to-date basis with 533.9 million units worth N520.9 million, followed by Industrial and General Insurance (IGI) Plc with 70.2 million units sold for N23.8 million, and Geo Fluids Plc with 44.2 million units valued at N89.4 million.
FrieslandCampina Wamco Nigeria Plc finished the trading day as the active stock by value on a year-to-date basis with 13.8 million units valued at N531.6 million, trailed by Impresit Bakolori Plc with 533.9 million units worth N520.9 million, and Afriland Properties Plc with 17.8 million units sold for N364.2 million.
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