Being excerpts of a TV interview granted by Dr. Umaru Kwairanga, Group Chairman of NGX Group at the Fintech Money 20/20 Middle East Riyadh International Conference Centre in Saudi Arabia.
- What does the scale of the Dangote offer tell global investors about Nigeria’s capital market?
The Dangote Petroleum Refinery IPO sends an important signal about the capacity and ambition of Nigeria’s capital market.
The significance goes beyond the size of the transaction. It demonstrates that businesses of substantial scale can turn to our public market to raise long-term capital, broaden ownership and give both institutional and retail investors an opportunity to participate in their growth.
It also has a signalling effect. When a company of this scale comes to the public market, it can encourage other large Nigerian and African businesses to consider the capital market as a credible route for financing growth.
For global investors, this is happening at a time when Nigeria’s market infrastructure and accessibility are also improving. We have transitioned to T+1 settlement, extended trading hours and Nigeria will return to FTSE Russell’s Frontier Market universe from 21 September.
So, the message is clear: Nigeria is building a deeper and more investable capital market, capable of supporting companies of global ambition and connecting them with capital at scale.
- How is NGX making major listings accessible to everyday investors?
For us, bringing major companies to the market is only one part of the equation. The other is ensuring that ordinary Nigerians can participate in the opportunities those companies create.
Historically, participating in a public offer could be a relatively cumbersome process. Today, we are changing that through NGX Invest and the wider distribution ecosystem around the market.
Investors can access public offers through multiple channels, including stockbrokers, banks and approved digital platforms. NGX Invest provides the underlying infrastructure that helps connect issuers to those distribution channels.
That is important because investors should increasingly be able to participate through platforms they already know and use, rather than having to navigate an entirely separate process.
Ultimately, this is about broadening ownership of Nigerian enterprise. As more companies come to market, we want more Nigerians, including younger and first-time investors, to have the opportunity to participate in the country’s economic growth through the capital market.
- What would it take for more Gulf investors to trade on Nigerian Exchange?
Gulf investors manage some of the world’s largest pools of long-term capital, and Nigeria presents significant opportunities across financial services, telecommunications, energy, infrastructure and industrial development.
But attracting more of that capital requires more than simply presenting the opportunity. International investors need market accessibility, liquidity, regulatory certainty and confidence that capital can move efficiently in and out of the market.
Nigeria has made meaningful progress in those areas. Foreign-exchange liquidity and market accessibility have improved, we have transitioned to T+1 settlement, and we have extended our trading hours. FTSE Russell’s decision to return Nigeria to Frontier Market status from 21 September is also an important recognition of improvements in market accessibility.
The next step is greater connectivity between our markets. We need stronger relationships with Gulf sovereign wealth funds, asset managers, family offices and other institutional investors; greater visibility for Nigerian companies; and more opportunities for those investors to engage directly with our market.
For me, the opportunity is to build a stronger Nigeria–Gulf investment corridor, connecting significant pools of Gulf capital with credible Nigerian businesses and investment opportunities.
NGX Group has an important role to play in creating the market infrastructure, partnerships and international connectivity that can make that happen.”
- As more people invest from their phones, how is the Exchange keeping investors safe?
Greater digital access is very positive for the market, but as participation expands, investor protection becomes even more important.
The foundation is regulation. Through NGX Regulation, we have independent oversight of the market, surveillance of trading activity, enforcement of our rules and mechanisms for handling investor complaints.
The second element is transparency. Investors need timely information about the companies and securities they are investing in so they can make informed decisions.
And the third is education. A mobile phone can make it easier to access an investment, but it does not remove investment risk. As we bring more first-time investors into the market, we must continue to educate them about using regulated channels, understanding what they are buying and making informed, long-term investment decisions.
So, for us, access and protection have to grow together. Technology can widen participation, but trust is ultimately what sustains a capital market.
