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NSE to leverage alternative platforms for capital raise

By Nkiruka Nnorom

AS Fintech and investment into the space continues to gain traction around the globe, the Nigerian Stock Exchange, NSE, said it plans to explore new technologies including blockchain and Distributed Ledger Technology (DLT) for capital raise.

Chief Executive Officer, CEO, of the NSE, Mr. Osacr Onyema, disclosed this at the FinTechNGR Social Meet 4.0 organised by the Exchange in Lagos.

Onyema stated that global picture of capital flow into FinTechs especially in emerging markets is a proof that FinTechs are important economic catalysts in the fourth  Industrial Revolution, but regretted that local investors are not taking its advantage to advance their investments.

Nigerian Stock Exchange

He said: “According to KPMG’s “2018 Global Analysis of Investment” equity investment into global FinTech companies almost tripled from $18.9 billion to $50.8 billion between 2013 and 2017; and has continued to gain traction. Surprisingly, foreign investors seem to be seeing these gains better than local investors as statistics show that they have dominated capital raise for indigenous start-ups in the last couple of years.

“At the NSE, one of our key strategies is the segmentation of our market with the introduction of a Growth Board to cater to companies with high growth prospects, including FinTechs emerging from venture capital management to a more mature management that would require public investment and corporate consolidation. This approach, in our opinion, would assist companies with high growth potential, leverage public finance for growth and expansion.”

According to him, FinTech offers the opportunity to deepen capital market activities and also achieve sustainable economic growth by empowering a larger portion of the populace to access financial services; unlock efficiencies in product and service delivery for financial institutions and increase transparency and resilience of the Nigerian capital market and larger financial ecosystem.

He explained that the theme of the event, “Growth Funding and Strategic Capital Raise – Extending Financial Inclusiveness through the Capital Market” is of particular interest to the Exchange due to its connection to its core function as a hub for accessing capital.

“It is also of key interest to the larger economy, particularly the business community of start-ups and Small, and Medium Enterprises (SMEs). While we are focused on delivering on our mandate to be Africa’s Preferred Exchange Hub, the bigger picture is to create a dynamic marketplace that fuels growth and empowers our people towards excellence in business and ventures,” Onyema added.

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