The chairman of the Nigerian Exchange Group Plc, Alhaji (Dr) Umaru Kwairanga, has said, the number of local investors’ participation in the Nigerian capital market was unacceptable given the population of the country.
This is even as NGX has inducted 86 newly qualified Authorised Dealing Clerks.
Speaking earlier at the 2024 annual conference of the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos recently, Kwairanga said, “we are coming from less than 100,000 with a population of over 200 million which is unacceptable. It has been noticed not just in Africa but by the world that Nigeria is the hub for Bitcoin, blockchain, and all the modernisation. We have noticed that the younger generation prefers no paperwork, they want to do everything with their handset.
“That is why we invest in all the technology that they use. What we have achieved in the last six months is doubled or tripled the number of investors, a feat that we were unable to achieve in the last 20 years in the Nigerian capital market.”
He added that, “we are seeing a situation where all the people who participated in the banking recapitalisation using the latest technology are part of the primary market. At the end of the day, we want them to be part of the secondary market.
“We are not just looking at the short term but the long term. That is why we are using this opportunity to call on the CBN, let’s try and see how to reduce the verification process. Verification is good but it is unacceptable when people are seeing the prices go up and cannot take advantage of it.”
Kwairanga, who spoke on the theme, ‘Banks’ Recapitalisation: Bridging the Gap Between Investors and Issuers in the Capital Market,’ noted that the Nigerian Exchange Group remained unwavering in its commitment to creating a capital market ecosystem that supports these objectives.
“The capital market serves as a critical enabler in this process, acting as a bridge between issuers seeking to raise capital and investors looking for opportunities to create value.
“At NGX Group, our mission is to ensure that this bridge is efficient, accessible, and transparent. It is against this backdrop that we introduced NGX Invest, a digital platform transforming the way public offerings and rights issues are distributed in Nigeria.
“Since its inception, NGX Invest has facilitated over N1.26 trillion in capital-raising efforts by banks, including notable players such as FBN Holdings, Zenith Bank, GTCO, FCMB Group and Access Bank amongst others,” he said.
He added that, “these achievements underscore the potential of the capital market to support various sectors’ growth while fostering investor confidence through transparency and efficiency.” Kwairanga noted that, “achieving a robust and vibrant market goes beyond infrastructure and technology. It requires trust, informed decision-making, and accurate reporting.”
Meanwhile, Nigerian Exchange Limited has inducted 86 newly qualified Authorised Dealing Clerks.
The inductees, representing several trading firms, were commended for their achievement after successfully completing the Nigerian Exchange’s rigorous Automated Trading System (ATS) Brokers’ Certification programme, a 15-day training that equips them with comprehensive knowledge of capital market operations.
Speaking at the event, chief executive officer of NGX, Jude Chiemeka congratulated the new clerks and highlighted the significance of their achievement.
“On behalf of the Board and Executive Management of NGX, I would like to extend my congratulations to all today’s inductees. This induction marks the culmination of your hard work, dedication, and the knowledge you have gained through the ATS training,” said Chiemeka.
He added that “this milestone not only confirms your qualifications to practice as Authorised Dealing Clerks but also signifies your commitment to upholding the highest ethical standards in the Nigerian capital market.”
Chiemeka also stressed the importance of professionalism and the adherence to the regulatory frameworks that underpin NGX’s operations, saying, “as you embark on this exciting journey, remember that your role demands a commitment to integrity and responsibility. Always place the interests of the market first, and ensure that you adhere to the ethical standards set by both NGX and the Chartered Institute of Stockbrokers (CIS).”
He encouraged the inductees to stay ahead in the fast-evolving capital market by continuously expanding their knowledge, advising that the market is dynamic, and as it deepens with the introduction of new products and technological innovations, it is vital to continuously learn and stay informed.
President of the Chartered Institute of Stockbrokers, Oluropo Dada, also offered words of encouragement and wisdom to the new clerks.
As NGX continues to innovate and lead in the capital market, the newly inducted Dealing Clerks are poised to play a crucial role in its continued growth, integrity, and success.