The Nigerian Exchange Limited (NGX) says it will set up a technology board to attract more listing from the tech sector.
Temi Popoola, chief executive officer (CEO), NGX, disclosed this while speaking at the exchange’s annual 2021 Market Recap and 2022 Outlook in collaboration with Renaissance Capital (RenCap), held virtually on Thursday.
Popoola said the board would be like the NASDAQ-style board to increase listings in Nigeria’s tech sector.
Nasdaq is known to be a tech-heavy index. As of July 2021, technology firms made up half of the index. The initiative is to encourage more tech companies to list domestically by addressing governance concerns.
In 2019, the Shanghai stock market also launched trading in a Nasdaq-style market. It has 25 tech companies listed on the science and technology innovation board.
“If we look today across our capital markets – if you look across our continent. There are very few listings in the technology sector, particularly in Nigeria,” he said.
“Ultimately, if you look within the technology sector, you will see a lot of capital raising happening there.
“Every other week, we wake up to the news of a technology company that has done capital rounds.”
He said the NGX intends to serve as a capital-raising platform for tech startups in the sector.
“For us at the exchange, we are asking how our market and our platform can be the platform that people raise some form of capital,” he added.
“We’ve been doing a lot of work like management of the board.”
According to him, NGX is partnering with other players such as the Securities and Exchange Commission to achieve the initiative..
“We’ve taken a close look at our rules, our boards, and we have found that there is a lot of work really to do.
“For example, NGX this year is looking to launch a NASDAQ style board that will be called the technological board.
“We feel confident that this will attract capital into Nigeria, Nigerians in diaspora, foreign investors and local investors as well.
“It will really help us to achieve this fundamental responsibility of trying to drive the econ0my by driving capital as a basis for surplus to those sectors.
“So this year, you would see a lot of activities and interaction with technical system as we also drive listings.
“We will also drive returns as we try to get closer to this younger generation.”
– The Cable