NGX, BOI collaborate to deepen inclusive growth in Nigeria’s Capital Market

The Nigerian Exchange Limited (NGX) and Bank of Industry (BOI) have signed a Memorandum of Understanding (MoU) to deepen capital market reach, build capacity of stakeholders through financial literacy programs, facilitate market advocacy initiatives and promote listings.

The MoU will have NGX and BOI 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.

At the signing ceremony in Lagos, the Chief Executive Officer (CEO) of the Nigerian exchange limited, Temi Popoola said “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.”

The MD/CEO, Bank of Industry, Mr Olukayode Pitan explained that the signing ceremony will enable BOI and NGX to jointly develop programs that will educate all stakeholders, especially Large Enterprises and Small & Medium Enterprises on how to access alternative financing options.

Pitan 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.”

BOI’s mandate to promote capital market inclusion supported the expansion of over 3 million enterprises and created over 7 million jobs.

Additionally, capital base expansion saw the bank making successful forays into the international market and raised about $3.8bn in the last 4 years.

This includes a $750million syndicated medium-term loan in 2018 (fully paid); a €1bn syndicated loan in March 2020; a $1bn syndicated loan in December 2020; and in addition, a €750mn Senior Eurobond (the first by any African national DFI) in February 2022.