Popoola: NGX invest to streamline primary market issuance, capital raise

The Nigerian Exchange Group (NGX) has unveiled its latest digital platform, NGX Invest, designed to streamline primary market issuance processes, particularly focused on capital raising. In an exclusive interview with CNBC Africa, the Group Managing Director and CEO of NGX, Temi Popoola, highlighted the platform's aim to modernize the Nigerian capital market infrastructure and enhance interoperability within the financial industry. Popoola emphasized that the NGX Invest platform is a culmination of years of digital innovation efforts within the exchange. He commended the resilience shown by the exchange during the COVID-19 pandemic, with three years of uninterrupted remote trading. The platform aims to revolutionize the traditional paper-based primary market issuance process, making it more efficient and accessible to a wider audience. Through the NGX Invest platform, investors can now easily participate in public offer securities within minutes. With two live right issuances and two public offers currently listed on the platform, users can seamlessly invest by simply visiting www.invest.ngxgroup.com. The key theme of the interview centered around the digital transformation of the capital market and the expansion of investment opportunities beyond equities. Popoola disclosed that the platform serves as an API gateway for various stakeholders, including online brokerage platforms and financial institutions. By leveraging the APIs provided by NGX, these entities can facilitate smooth distribution of securities to their customers, fostering closer integration between the financial sector and the capital market. In response to inquiries about potential expansions, Popoola clarified that while the platform currently supports primary market instruments in compliance with existing regulations, there are prospects to explore the distribution of other asset classes in the future. He expressed optimism about the platform's capacity to broaden access to retail investors and drive economic recovery through enhanced market participation. When questioned about the economic impact of NGX Invest and its long-term adoption rate, Popoola cited the platform's successful launch and robust performance in its initial weeks. He underscored the importance of educating the public about the benefits of digital investing and noted the positive response from investors and banks that have integrated their channels with the platform. As NGX continues to innovate and enhance its digital capabilities, the economic landscape of Nigeria stands to benefit from increased market efficiency, broader investment opportunities, and sustained economic growth. The ongoing efforts to promote financial inclusion and streamline capital raising processes signify a major step towards achieving long-term economic stability and prosperity in the country.