Nigerian Exchange Ponders Rule Amendments to Attract Listings
By Dipo Olowookere
There are strong indications that a few rules on the Nigerian Exchange (NGX) Limited could be changed to attract more companies to the capital market, the chief executive of the exchange, Mr Temi Popoola, has hinted.
At the NGX CEO Roundtable held recently, Mr Popoola said the idea is to deepen the stock exchange and make it the preferred platform for raising cheap funds for business expansion.
“To drive listings, we are taking a closer look at our rules to see areas of amendments to ensure companies raise capital more efficiently whilst protecting the investing public.
“NGX is also working with several stakeholders to ensure that the time to market and the costs for listing are optimized,” he informed participants of the event themed Creating the Enabling Ecosystem for Accessing Capital from the Nigerian Capital Market.
He explained that the idea behind the roundtable was to provide an avenue for companies to have frank talks with capital market regulators.
Mr Popoola further said the bourse was making efforts to leverage technology to enhance retail investor participation and drive listings, noting that financial literacy and inclusion remain at the front burner for stakeholders in the capital market and the exchange makes it a priority to contribute its quota towards the achievement of key targets of Nigeria’s National Financial Inclusion Strategy through initiatives that encourage the wider investing public to develop investment habits.
The CEO of Stanbic IBTC Capital, Mr Funso Akere, in his contribution, said technology plays a pivotal role in the time to market as it simplifies the process and capital market regulators would need to bring in the technology that can transform operations as well as allows for the introduction of some of the innovations already debated.
On his part, the CEO of BUA Foods, Mr Ayodele Abioye, further highlighted the need to drive capital market participation among youths and attract retail investors using technology.
“Technology is key as we are in an industry 4.0 era where everything is smart. The younger generation wants things as quickly as possible; they want a quicker way to get their investments back and so we must think of products that can address this.
“With the advent of Covid-19, tech has evolved and as a result, we need to do more roadshows and set up stock exchange clubs to reach the youths,” he said.
Speaking on the importance of raising awareness about the capital market, the CEO of MTN Nigeria, Mr Karl Toriola, revealed that his company has implemented activities in driving capital market awareness and participation across eight locations in Nigeria.
“In the world of digital information, leveraging on the digital ecosystem to really educate people on the benefits of the capital market is very critical and the capillarity that has been created by stakeholders has deepened confidence.
“Using the digital system to optimize the immediate distribution of shares boosts more confidence in the capital market. We need to include the capital market in the curriculum of educational institutions,” he added.
The CEO of the Central Securities Clearing System (CSCS), Mr Haruna Jalo-Waziri, while speaking on the occasion, stressed the need for financial literacy and the importance of technology, pointing out that Ponzi schemes thrive because the onboarding technique is done immediately, therefore there is a need to improve on the onboarding technique in the capital market.
Furthermore, panellists have asked regulators to review the time to market and make the capital market more attractive for all key players via technology.