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Want to know the story behind how the Nigerian Stock Exchange transformed into the NGX Group in 2021?
The Nigerian Stock Exchange (NSE) has now transformed into the Nigeria Exchange Group (NGX Group), a transformation that marks an important step forward for African financial markets. Founded in 1961, the NSE is the oldest existing stock exchange in West Africa. It has a long history and was once the main place for enterprises and investors to invest and raise funds. With the de-mutualization in 2021, NSE has not only reshaped its brand image, but also further expanded its business scope.
"NSE's demutualization process allows us to operate the market in a more flexible way. This is not only a rebranding, but also a positive adjustment to our long-term strategy."
The significance of de-mutualization
Demutualization in 2021 is an important milestone in the history of the Nigerian Stock Exchange. This process not only transformed the NSE into NGX Group Plc, but also launched three subsidiaries: Nigeria Exchange Limited (NGX), NGX Regulation Limited (NGX RegCo) and NGX Real Estate Limited (NGX RelCo). The purpose of this reform is to enhance market transparency, improve efficiency, and attract more domestic and foreign investors.
Service diversified market structure
Today's NGX is not only a stock trading platform, but also a multi-asset trading system covering up to 393 listed securities. This includes 151 listed companies, 157 fixed income securities, 12 exchange-traded products and multiple index futures. NGX's diversified products have significantly enhanced investors' choices and helped better meet market demand.
"Our mission is to provide businesses and investors with reliable access to capital and an effective savings system."
Improve transparency and standardization
In order to improve market transparency, NGX has made active efforts to protect investors and reestablished the Investor Protection Fund to protect the interests of investors. In addition, NGX is regulated by the Nigeria Securities and Exchange Commission to ensure operational compliance and transparency.
Initiatives to attract international investors
NGX has also further promoted the inflow of foreign capital. The government has removed legislation restricting the inflow of foreign capital and foreign brokers can now register on the exchange as traders. This policy aims to encourage more foreign investors to participate in the Nigerian market.
Future development direction
In today's rapidly changing financial environment, NGX is committed to technological innovation. The exchange has introduced automated trading systems since 1999, and in 2013 it launched a more advanced trading platform, X-Gen, designed to facilitate electronic trading for retail and institutional investors. The recent appointment of NGX’s Chairman and updates to its executive team demonstrate the agency’s further commitment to the future.
Reviewing history and looking forward to the future
The history of the Nigerian Stock Exchange can be traced back to 1960, when only 19 securities were listed for trading. However, over time, NSE became a financial institution that was crucial to the economic development of the country. In the future, with the development of NGX Group, we can't help but think about how this change will affect Nigeria's economic environment and investor confidence?
At such an important moment, how should we assess NGX Group’s role in African financial markets and its future potential?
