Capital market participants have praised NGX for providing a dynamic listing platform that enables governments and corporations to achieve their business goals. This was stated during the NGX CEO Roundtable held on Thursday, July 7, 2022.
The event, themed “Creating an enabling ecosystem for access to capital from Nigerian capital markets”, brought together key players in the capital market ecosystem to address and propose solutions to the challenges facing faced by issuers to raise capital on the market.
In his opening remarks, the Chairman of Nigerian Exchange Limited (NGX), Abubakar Mahmoud, said that “we have convened this roundtable with the ultimate aim of enhancing the listing experience of listed companies and providing insights useful to prospective companies. NGX, as Nigeria’s premier securities exchange, remains strategically positioned to support the aspirations of its stakeholders and the Nigerian economy as a whole and we believe that the roundtable deliberations will help us to improve our operations and offerings in terms of listing experience, market development, advocacy, and investment opportunities.
In his opening speech, Minister of Industry, Trade and Investment, Adeniyi Adebayo, said the federal government was working diligently to improve the economy by diversifying the economy and strengthening institutions and the structures. Additionally, he said, “as more of our startups grow and mature, we need to ensure they have access to a range of financial options to support their expansion plans.”
The Honorable Minister of Finance, Budget and National Planning, Zainab Shamsuna Ahmed in a goodwill message said that as a nation facing the burden of economic recovery from the global pandemic, the capital market is an efficient and reliable solution for companies to raise capital and allow investors to get rich. Ahmed, who was represented by the Permanent Secretary of the Ministry of Finance, Aliyu Ahmed, said the theme of the roundtable is appropriate and will contribute to providing a deep, liquid and integrated capital market that will deepen alternative sources of financing and stimulate Investors. ‘confidence to invest for the long term in the capital market.
For his part, Securities and Exchange Commission Chief Executive Lamido Yuguda noted that the theme of the roundtable resonates with the Securities and Exchange Commission’s mandate to develop and regulate the market while protecting investors. “The Commission welcomes NGX’s sound initiatives as it continues to engage with experts for changes that will lead to more desired market expansion,” he added.
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Temi Popoola, CEO of Nigerian Exchange Limited, reassured stakeholders of NGX’s commitments to enhancing the issuer experience by providing a platform that enables companies to raise capital more efficiently while protecting investors. “As part of efforts to improve the listing experience for current issuers and attract new listings, NGX has intensified its efforts with policymakers to shape reforms and policies that support listings and the capital market in his outfit. We are strengthening the value proposition for companies so that they view the capital markets as a platform to raise capital and work to ensure that we are competitive with the options that are available to issuers. We are therefore actively involved in contributing to policy formulation and advocacy to ensure an enabling environment for listings, including working with multiple stakeholders to ensure that time to market and listing costs are optimized.
Speaking on the benefits derived from listing on the Exchange, CEO of MTN Nigeria Communications Plc, Karl Toriola, noted that MTN has received incredible support from NGX in its listing journey, which has enabled the brand to deepen and diversify its shareholder base. He mentioned that NGX’s strong corporate governance requirements and guidelines ensure credibility in the capital market and allow access to the general public. He further explained that the recent public offering of MTN Nigeria launched on the Stock Exchange saw about 78% female subscribers, 80% of whom are under the age of 41, which shows the push for financial inclusion.
Furthermore, BUA Foods Plc CEO Ayodele Abioye said that listing on the Stock Exchange enables democratization and public participation, which has enhanced the credibility of the BUA brand. “Listing on NGX presents opportunities for companies to raise capital, fund business growth and implement expansion plans. In the first few weeks of our listing, our shares valued at N18 billion on the Exchange rose by 66%. As our share price continues to stabilize, our shareholding has increased by approximately 400% since listing on the Exchange and we are beginning to see investor confidence in our business,” he added.
Regarding opportunities to improve the listing process, panellists argued that there is a need to shorten time to market and reduce transaction costs. Sharing the optimism for the future of the capital market, it was also noted that the regulatory process has improved over the past decades with significant progress under the current administration.
Roundtable panelists include Karl Toriola, CEO, MTN Communications Nigeria Plc; Ayodele Abioye, CEO, BUA Foods Plc; Owen Omogiafo, Chairman/GCEO, Transnational Corporation Plc; Ike Chioke, GMD, Afrinvest (West Africa) Limited and Chairman, Association of Issuing Houses of Nigeria; Abbas Abdulkadir, Head, Registration, Exchanges and Market Infrastructure and Innovation, Securities & Exchange Commission; Asue Ighodalo, Founding Partner, Banwo & Ighodalo and Chairman, Nigerian Economic Summit Group (NESG); Funso Akere, CEO, Stanbic IBTC Capital; Haruna Jalo-Waziri, CEO, Central Securities Clearing System Plc; Selloua Chakri, Managing Director of SCL Advisory Limited; Ogho Okiti, Managing Director, BusinessDay and Jude Chiemeka, Division Head, Capital Markets, NGX.
NGX CEO Roundtable is a platform that ensures continuous dialogue with key stakeholders and provides strategic solutions to economic issues for follow-up implementation by the Exchange in its role of defending the financial markets.
