Nigerian bourse okays new structure to lead digitalisation of capital market

BY: CHARLES ABUEDE

The board of the Nigerian Exchange (NGX) Limited has approved a new strategy centred on digital transformation, strategic partnerships, and customer-centric solutions as part of the exchange’s ongoing activities aimed at improving business operations and processes at the NGX.

The NGX board, disclosed that it will ensure that the bourse becomes a “LEADING” organisation with a focus on deepening the capital market, diversifying its products and services, enhancing retail participation, and delighting stakeholders across board. The decision comes after the company recorded an impressive outing in 2021 following its demutualization.

The bourse said the new strategy reflects the Exchange’s commitment to developing the Nigerian capital market through agile, innovative, and disruptive approaches, which will in turn contribute to the growth of Nigeria’s economy.

In 2021, the stock exchange experienced growth in trading figures with the NGX All Share Index returning 6.1 percent and turnover in the fixed income market increasing by 158.19 percent. In the same vein, the equity capitalization of listed companies rose 5.89 percent while the fixed income market reported a 12.81 percent increase in its performance during the year.

However, the year saw several landmark transactions being recorded, including the first-ever end-to-end digital offer in the Nigerian capital market, the groundbreaking listing of BUA Cement PLC’s N115 billion bond, the largest corporate bond issuance, among others.

The NGX board said to actively consolidate these results, it has approved the restructuring of the bourse to efficiently implement its new strategy. As part of the restructuring, the board approved a change in the organisational structure with the attendant workforce restructuring to better position the bourse to deliver competitive value in today’s dynamic technology-driven global capital market.

The new structure, which took effect from Tuesday, 1 March 2022, is designed to increase efficiency, enhance value, reduce cost, and maximise revenue generation.

According to the disclosure by the exchange, the company, following its successful demutualization in 2021, is ready to transition from an operational structure of four Divisions, namely, Listings Business, Trading Business, Business Support Services, and Technology Services, to a refreshed operational structure of three Divisions namely: Capital Markets, Digital Technology, and Business Support Services.

The company said while there is a deep appreciation for the efforts of all employees in building the thriving exchange that exists today, these actions are necessitated by the need to effectively position Nigerian Exchange Limited to lead the digitalisation and digital transformation of the Nigerian capital market, adding that ultimately, the NGX remains focused on providing investors and businesses a reliable, efficient, and adaptable exchange hub in Africa, to save and access capital.