The Nigerian Exchange Limited (NGX) has set strategic plans to attract Financial technology (Fintech) firms to raise fund in the nation’s capital market.
Speaking in Lagos at the virtual NGX 2021 Market Recap and Outlook for 2022, the Chief Executive Officer of NGX, Temi Popoola said the exchange has concluded arrangement to launch a Nasdaq-style board, an initiative that would help woo more tech companies and Nigerians in diaspora to the exchange this year.
According to him, the initiative would enable the exchange to address major constraints such as listing rules and other perennial issues that have given them the impetus to access capital offshore.
Findings show that Nigerian Fintechs are approaching investors and getting funded, especially from venture capitalists (VC) in countries such as United States, United Kingdom, Switzerland and Belgium. From these offshore destinations, these Fintechs have raised some $876.5 million in the last six years.
From 2014 to 2020, for instance, Fintechs raised about $600 million in funding, attracting 25 per cent ($122 million) of the $491.6 million raised by African tech startups in 2019 alone – second only to Kenya, which attracted $149 million.
Experts argued that these venture capitalists have invested a huge amount of money in emerging financial services startups, which has made it possible for Fintech firms to grow and access more capital offshore.
“Today, globally, there are lots of capitals raising from tech companies. Our market can be a source to raise this capital. SEC has already taken the leadership. It will help to drive economic growth and mobilise capital from sectors of surplus to deficit,” he said.
In addition, he said the exchange would also focus more on digitizing its processes and operations across value chain to attract more investors, especially the millennials and youths who are increasingly turning to alternative investment options.
