SEC Approves NGX Invest e-Offering Platform for Capital Market

By Aduragbemi Omiyale

The revolutionary digital platform designed by the Nigerian Exchange (NGX) Group Plc to streamline public offerings and rights issues in the Nigerian capital market known as NGX Invest has been approved by the Securities and Exchange Commission (SEC).

The platform, which can be accessed via https://invest.ngxgroup.com, came at a crucial time coinciding with the banking recapitalisation directive of the Central Bank of Nigeria (CBN), which has prompted numerous offers for subscription and rights announcements by Nigerian banks.

Both the CBN and SEC have provided robust regulatory support for this initiative, with Access Holdings Plc, FCMB Group and Fidelity Bank Plc already utilising the NGX Invest APIs to distribute their offerings to retail investors.

The NGX Group disclosed that the initiative represents a significant leap forward in improving stakeholder experience within Nigeria’s capital market.

Building on the success of the country’s first digital public offering in 2021 – which attracted over 150,000 new retail investors, 75 per cent of whom were female and 85% under the age of 40 – NGX Invest enhances transparency and accessibility in primary market transactions.

“The e-offering platform aligns perfectly with our objective of future-proofing the Nigerian capital market,” the Director-General of SEC, Mr Emomotimi Agama, said.

“By digitalising and automating financial intermediation processes, we are fostering a more efficient, transparent, and inclusive capital market.

“At the commission, our focus is on creating an enabling regulatory environment that promotes innovation without compromising compliance and investor protection. I commend NGX Group for its strategic investment in advancing our capital markets,” he added.

On his part, the chairman of NGX Group, Mr Umaru Kwairanga, said, “The supportive regulatory environment has provided a solid foundation that enabled the swift delivery of the platform.”

“This reflects our mutual commitment to market development and will undoubtedly contribute to boosting the participation of retail investors in the capital market.

“As we strive for the market to play a larger role in Nigeria’s economic development, the integration of technology, strong partnerships, and collaboration, alongside a positive policy environment, will be essential,” he added.

The chief executive of NGX Group, Mr Temi Popoola, while commenting on the development, expressed enthusiasm for the new platform, noting its significance in NGX Group’s digital transformation journey and ability to enhance market access and foster economic growth.

“We sincerely appreciate SEC and CBN for their strong support and leadership. Our intermediaries and partners, including the Central Securities Clearing System (CSCS), have been instrumental in achieving this success.

“This platform demonstrates our commitment to innovation and strengthening Nigeria’s capital markets, particularly as we support the banking sector’s recapitalisation efforts,” he said.

Mr Popoola emphasised that NGX Invest is designed to significantly enhance the efficiency of public offering subscriptions and rights issue processes, streamlining operational workflows to better support issuers’ capital-raising efforts.

The chief executive of NGX Limited, Mr Jude Chiemeka, disclosed that, “NGX Invest addresses the demand for a more efficient and transparent process in managing public offers and rights issues.

“It will expedite reconciliation and allotment processes, reduce unclaimed dividends, and boost investor confidence. All stakeholders – including investors, registrars, issuing houses, brokers, banks, and regulators – stand to benefit significantly from this innovation.”