NGX Mulls Ways to Create Access for Diaspora Investments
By Aduragbemi Omiyale
A few months ago, some digital brokerage firms came up with ways to allow Nigerian investors to invest in foreign equities but the Securities and Exchange Commission (SEC) clamped down on them, stating that they had no authorisation to do that.
However, the Nigerian Exchange (NGX) Limited is working tirelessly to ensure domestic investors have access to diaspora investments and others.
According to the chief executive of the NGX, Mr Temi Popoola, this is one of the focus areas of the exchange to deepen the Nigerian capital market.
At NGX, our efforts are focused on four key areas: first, how can we further diversify products through the securitisation of fixed income instruments; second, how can we build a platform where we can trade infrastructure tax credits; third, how do we tap into new sources of capital to improve retail investment and participation; and finally, how can we create access for diaspora investments.
“We are confident that with the right regulatory support and engagements such as this, we begin to build and deploy solutions that address these and more,” Mr Popoola said at a strategic meeting with market stakeholders organised by the Debt Management Office (DMO) in Lagos last week.
He restated the commitment of the bourse to support the debt office to deepen the capital market, acknowledging the contributions of the agency to the growth of the capital market.
“The Nigerian capital market is certainly deeper as a result of the activities of the DMO evidenced by-products such as Sukuk Bonds, Eurobonds and Federal Government Bonds.
“It is evident to capital market enablers that we must adopt a collaborative approach to deepening our market for the benefit of all,” he said.
In her remarks, the Director-General of the DMO, Ms Patience Oniha, commended critical stakeholders for their role in helping the federal government build the Nigerian economy.
She acknowledged the critical importance of debt financing in Nigeria especially as it relates to financing infrastructure projects, stating that, “Given the significance of debt in any economy, capital market enablers are integral to the development of the Nigerian economy making it imperative that we have engagements such as this.”
“I thank you for all your commitment evidenced by your being here today and I believe that the DMO can continue to count on your support,” the debt office boss disclosed.