The Nigerian Exchange Limited (“NGX”) and Bank of Industry (“BOI”) have signed a Memorandum of Understanding (MoU) to deepen the nation’s capital market penetration, build the capacity of stakeholders through financial literacy programmes, and facilitate market advocacy initiatives and promote listings, amongst other benefits to the economy.
The sealing of the pact was done by the Chief Executive Officer (CEO), NGX, Mr. Temi Popoola and his BOI counterpart, Mr. Olukayode Pitan, in Lagos.
By its provisions, both parties will collaborate on driving capital market solutions through the promotion of retail participation and listings, enhancing information flow to stakeholders and supporting market development that further deepens capital market advocacy initiatives.
Commenting after the signing of the MoU, the NGX boss explained that the initiative was undertaken, “in furtherance of The Exchange’s aim to promote the interest of stakeholders operating in the capital market, the collaboration will support various advocacy initiatives to develop the Nigerian capital market, promote information flow to small and medium enterprises (SMEs) about the capital market listing procedures and facilitate training for potential issuers on the various product initiatives.
“NGX will work closely with BOI to create a seamless avenue for divestments through the listings of any of its investee companies on the Boards of NGX”, Popoola added.
In his remarks, the BoI Managing Director said that the signing of the pact would enable the partners to jointly develop programmes that will educate all stakeholders, especially Large Enterprises and Small & Medium Enterprises on how to access alternative financing options.
He said: “Through this partnership with NGX, BOI will encourage companies in which it has equity holdings as well as its pool of current and past borrowers to approach The Exchange for initial public listings which will serve as a veritable window for divestments and access to wider funding options.”
