The Nigerian Exchange Limited (NGX) has announced plans to launch an unstructured supplementary service data (USSD) initiative aimed at enhancing Africa’s capital markets payment system. This initiative will be realized through collaboration with telecommunication companies and banks. During a virtual event focused on the 2022 market recap and the 2023 outlook, NGX Chief Executive Officer Temi Popoola emphasized that the adoption of USSD would simplify the continent’s capital markets by integrating with Afreximbank’s Pan African payment settlement system.
Popoola highlighted that the Exchange is targeting the development of new products designed to attract the lower segments of the Nigerian demographic. He stated, “NGX is also focused on increasing youth participation through the creation of digital asset products powered by blockchain technology, non-depository receipts, and overall enhancing the pool of available liquidity in the market.” He further mentioned that NGX plans to forge strategic partnerships with development finance institutions and banks, both local and international, to further develop the market. The Exchange aims to improve trading by enhancing data dissemination to attract a broader investor base, particularly from the retail sector.
In terms of listings, Popoola indicated that NGX would use this as a vehicle to meet strategic aspirations, especially as new developments arise through increased advocacy and engagement. He underscored the importance of sustainability, viewing it not only as a crucial aspect of the business but also as a profitable frontier. Work is currently underway to develop a framework for certifications in carbon credits trading, pending regulatory approval. He expressed optimism that 2023 could mark a new dawn for the market and the Nigerian economy as significant events unfold in the macroeconomic and political landscapes.
Reflecting on the 2022 market performance, Popoola noted that the bullish trend observed during the year was partially driven by the N4.3 trillion in listings recorded by NGX across equities and fixed-income markets. He pointed out that the raising of N2.54 trillion in bond listings for the Federal Government of Nigeria, along with equity listings totaling N1.35 trillion from companies such as BUA Foods Plc and Geregu Power Plc, significantly impacted overall market performance. The NGX CEO emphasized that the value of these listings demonstrates the local bourse’s commitment to positioning itself as a premier location for raising capital, showcasing its ability to facilitate a wide range of transactions and attract diverse businesses, thus reinforcing its leadership in financial market innovation across the African continent.
Looking ahead to 2023, Popoola stated that NGX would adopt a flexible approach to strategy execution, building on its achievements from 2022 and expanding on several initiatives. He noted that the NGX Technology Board Listing Rules were approved by the Securities and Exchange Commission in December 2022, which aims to attract more technology companies to the Exchange and deepen capital formation in the technology sector. Currently, NGX is in consultations with stakeholders in this sector and is optimistic about securing several prominent names within the year.
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