Targeting $20 billion in the IT sector via a specialized listing board, NGX

The Nigerian Exchange Limited (NGX) has announced that it is aiming for a $20 billion technology sector with a specialized listing board on the exchange in an effort to increase the variety of the capital market by reframing it as an appealing location for technology businesses.

According to a research by Disrupt Africa, the African IT industry is expanding quickly, with start-ups raising over $4 billion between 2015 and 2021 and having combined values of over $20 billion.

The NGX recently hosted an NGX Technology Board Webinar to promote thorough debate and effective action to advance African technology.

Smart individuals from the public and private sectors expressed optimism at the event, which had the theme “Enabling the Next Wave of Growth for Technology Companies in Africa,” about the proposed launch of the NGX Technology Board to promote more tech listings and significantly increase the availability of opportunities for African technology firms.

The Chairman of NGX, Abubakar Mahmoud, opened the event with his comments, and he was represented by NGX board member Erelu Angela Adebayo. He stated Nigeria is home to multiple unicorns, including Flutterwave, Andela, Jumia, and Opay, which have values above $1 billion.

“NGX is positioned to foster the emergence of the next generation of technology businesses,” he said, calling it a sustainable exchange that champions Africa’s development. It is boosting the capital market and giving digital businesses in Nigeria and other parts of Africa a customised platform to seek expansion funding while also offering exit possibilities for all investors. Sustainability, agility, cooperation, and digital innovation must be the cornerstones of the next wave of development for domestic technology businesses, and NGX embodies these traits.

While delivering his message of goodwill, Mr. Lamido Yuguda, Director General of the Securities and Exchange Commission (SEC), was represented by Dayo Obisan, Executive Commissioner, Operations, of the SEC. Mr. Yuguda noted that despite the numerous technological advancements that have been made, Africa continues to have the greatest potential for technological advancements. As a result, the continent’s ability to shape its future digitally must be accelerated by improving its technological capabilities.

He said that “Africa has the ability to evolve into a technology powerhouse with the correct enabling and SEC would support commendable activities targeted at building on the capabilities of our market to establish a healthy environment for the Nigerian capital market.

“The Exchange is working tirelessly with other major stakeholders including the SEC, Central Bank of Nigeria (CBN), Central Securities Clearing Systems (CSCS), and Pension Fund Operations Association of Nigeria (PenOp) to launch and on-board a new asset class,” said Mr. Temi Popoola, Chief Executive Officer of NGX, in his opening remarks.

The Specialized Technology Board seeks to promote the listing of businesses in the technology sector, boost transparency, and raise awareness of foreign investment activities in established tech firms and local startups.

The Deputy Governor of the CBN’s Financial Systems Stability Directorate, Mrs. Aisha Ahmad, delivered the keynote speech. She remarked that tech has developed from a business enabler to a stand-alone industry, with some of the biggest firms in the world like Meta andQ3 Google. Africa has a $2.7 trillion economy, and in order for this growth to have a positive impact on other areas of the economy, we need more local investor participation. I am especially enthusiastic about the NGX’s Technology Board plan, which will increase the number of listings for Nigerian and African tech companies. It would facilitate the price discovery of IT industry values and direct money to the sector and others, she said.

Miniechat

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