Nigeria: Technology’s Transformative Role in Advancing Capital Markets: Insights from NGX CEO

The Chief Executive Officer of the Nigerian Exchange Limited (NGX), Temi Popoola, highlighted the potential of technology to drive the growth of capital markets in Nigeria and the broader West African region. He made these remarks during the West Africa Capital Market Conference in Lagos, where he participated in a panel discussion focused on ‘Digital Transformation and Infrastructure Development: Leveraging Technology Growth in ECOWAS Region.’

Popoola emphasized that technology has laid a strong foundation for the evolution of capital markets, not only in Nigeria but throughout the African continent. He shared examples of recent technological innovations that have already had a significant impact on the local exchange.

“In December 2021, we achieved a landmark transaction through technology – a secondary share sale in our capital market. This marked the first time in our market’s history when retail investors could purchase shares end to end using their mobile phones,” Popoola explained. He also highlighted a recent cross-border transaction between Nigeria and Ghana facilitated by Second Stax, a Ghana-based company. These instances showcase how digital innovation can be a catalyst for capital market growth.

The Chief Digital Officer of NGX, Olufemi Oyenuga, also presented on the exchange’s strategic use of digitalization to enhance its operations.

The West Africa Capital Market Conference, which commenced on Wednesday, gathered key stakeholders in the capital markets sector from across the West African sub-region. The conference served as a platform for these stakeholders to address critical issues related to the orderly expansion and development of regional and continental capital markets.

In his welcoming address, Lamido Yuguda, the Director General of the Securities and Exchange Commission, acknowledged that Nigeria was hosting the conference at an opportune moment. He noted that Nigeria’s vibrant capital market, with a market capitalization of USD 98.28 billion, reflects the country’s pivotal role in the region as Nigeria’s President, Asiwaju Bola Ahmed Tinubu, serves as the Chairman of ECOWAS. The event, themed ‘Infrastructure Deficit and Sustainable Financing in an Integrated West Africa Capital Market,’ was expected to foster integration, stimulate capital formation, promote tourism, and attract investors.