The Nigerian Exchange Limited said it will launch an unstructured supplementary service data to unlock Africa’s capital markets payment system through collaboration with telecommunication companies and banks.
Speaking during the virtual event on ‘2022 market recap and 2023 outlook’, the Chief Executive Officer, NGX, Temi popoola, said the adoption of USSD would further simplify the continent’s capital markets through integration with Afreximbank’s Pan African payment settlement system.
He added that the Exchange was targeting the development of new products aimed at attracting the lower rung of the Nigerian demography.
According to him, “NGX is also focused on increasing youth participation with the creation of digital asset products powered by Blockchain technology, non-depository receipts and overall increasing the pool of available liquidity in the market.
“On strategic partnerships, we will be forging more with development finance institutions, and banks, both local and international to further develop the market. We aim to do more on trading where we improve data dissemination to attract a more extensive investor base, especially from the retail side.
“We will be using listings as a vehicle for meeting strategic aspirations as the new dispensation come in through increased advocacy and engagements.
“NGX sees sustainability as not just important but also a profitable frontier of its business. Work is ongoing on developing a framework for certifications in carbon credits trading, pending regulatory approval.
“Altogether, 2023 is likely to be a new dawn for the market and the Nigerian economy as significant events take shape in the macroeconomic and political environments.”
On the 2022 market recap, he noted that the bullish run witnessed in the year might have been partly induced by the N4.3tn in listings recorded by NGX across equities and fixed-income markets.
He added that the raising of N2.54tn of bond listings for the Federal Government of Nigeria, as well as equity listings totaling N1.35tn from companies such as BUA Foods Plc and Geregu Power Plc had a significant impact on the overall market performance.
The NGX boss emphasised that the value of the listings showed the local bourse’s commitment to positioning itself as a premier location for raising capital and its ability to facilitate a wide range of transactions and attract a diverse range of businesses demonstrated its position as a leader in financial market innovation and progress on the African continent.
According to Popoola, NGX would take a flexible approach to strategy execution in 2023, doubling down on its 2022 achievements and expanding on several levers.
He said, “As you know, the NGX Technology Board Listing Rules were approved by the apex regulator, the Securities and Exchange Commission in December 2022.
“With this, we aim to drive more technology companies to the Exchange and deepen capital formation in the technology sector. We are currently in consultations with stakeholders in the sector and are confident of securing a few big names within the year.”