The Nigerian Exchange Group Plc’s Group Managing Director and CEO has outlined the exchange’s numerous plans to modernize its technological infrastructure, draw listings, increase participation from retail investors, and draw in foreign capital.
Popoola made this statement on Thursday, January 25, 2024, during the World Federation of Exchanges working group committee meeting in Frankfurt, Germany, which was hosted by Deutsche Boerse. Popoola addressed exchange leaders from all over the world. Speaking on attracting retail investors to the market, the GMD/CEO said, “We recognize the stark contrast between the investors currently engaged in the capital market and the vast potential represented by the 65 million banking accounts in Nigeria. Our vision is to bridge this divide, onboarding millions into the capital market and fostering financial inclusion on an unprecedented scale.”
Similar emerging markets are facing difficulties with listings and foreign capital inflows, and comments from CEOs of exchanges in Kenya and Egypt reflected the difficulties the Nigerian market is facing. The high interest rate environment in the United States contributes to the localization of capital in the country, hence starving other riskier markets of the needed capital. “We now find ourselves under a more pro-market leadership after enduring a difficult eight years with the previous administration.” This change puts NGX in a stronger position to grow and adapt to the changing economic environment, according to Popoola.
“Given the significance of government advocacy in the past, we have a more deliberate approach to working with the government to improve listing incentives. A prime example is the prioritization of listed companies in government procurement processes. Additionally, in collaboration with the regulator, we plan to review our listing requirements and bring them into line with markets like London in order to draw a wider range of companies to the Exchange.
The GMD/CEO also discussed the company’s technology investments, saying that in order to further improve agility, the Group is looking into ways to generate more revenue from data and to have meaningful API conversations with market infrastructure stakeholders, ranging from CCPs to CSDs.
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