As delistings from the Nigerian capital market grow, the Nigerian Exchange Group (NGX) is adjusting its strategy to tap into the increasing flow of private capital. Temi Popoola, the CEO of NGX, highlighted that global market trends are leaning towards private equity and venture capital, especially within the tech sector, which has led many companies to bypass public listings. At the NGX’s 64th annual general meeting, Popoola emphasized that this shift in financing models is a necessary step to counter the impact of delistings and maintain the market’s competitiveness.
In response to these market trends, NGX is focusing on positioning itself as a gateway for private capital. This move would not only address the issue of delistings but also make NGX relevant in a financial landscape where private capital increasingly powers growth, particularly for tech startups and unicorns. NGX plans to offer new avenues for funding, beyond the traditional public equity listings, and collaborate with regulatory bodies like the Securities and Exchange Commission (SEC) to modernize the market and make it more attractive to investors.
Popoola also mentioned that Nigeria would soon host a significant gathering of global private capital providers, which further highlights the country’s rising importance in the private investment space. This event will bring together investors interested in both private and public companies, marking a shift in how capital is sourced and allocated in Nigeria. NGX’s strategy is to balance this influx of private capital with new public listings, ensuring that both public and private investors are catered to in a rapidly evolving financial environment.
Despite the challenges posed by macroeconomic factors, NGX remains optimistic. Dr. Umaru Kwairanga, Chairman of NGX, reported strong financial growth for the group, with a 157.3% surge in profit before tax and a 103.2% increase in gross earnings. He reiterated NGX’s commitment to enhancing market infrastructure, ensuring a resilient and inclusive financial ecosystem for investors in the coming years.
Source: The guardian