Nigerian Exchange Limited (NGX) has targeted a $20 billion technology sector with a specialised listing board as part of its effort to increase the variety of the capital market by reframing it as an appealing location for technology companies.
This information was presented at the NGX Technology Board Webinar, which had as its theme “Enabling the Next Wave of Growth for Technology Companies in Africa.”
Smart businesspeople from the public and commercial sectors expressed hope at the event about the projected creation of the NGX Technology Board, which they believe will significantly expand the potential for African technology enterprises by encouraging additional tech listings.
According to a Disrupt Africa research, the African tech sector is expanding quickly, with startups raising over $4 billion between 2015 and 2021, with total valuations exceeding $20 billion.
The chairman of NGX, Abubakar Mahmoud, claimed that a number of tech unicorns (firms with valuations of more than $1 billion), including Flutterwave, Andela, Jumia, and Opay, are based in Nigeria.
He said: “as a sustainable exchange championing Africa’s growth, NGX is positioned to support the growth of the next wave of technology companies. It is stimulating the capital market, providing a tailored platform for tech companies in Nigeria and wider Africa to access growth capital whilst providing exit opportunities for all investors. The next wave of growth for home-bred technology companies needs to be anchored on sustainability, agility, collaboration and digital innovation and these are elements that NGX represents.”
The executive commissioner for operations, Dayo Obisan, for the director-general of the Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, noted that despite the numerous technological advancements, 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 believes that with sufficient backing, Africa has the potential to evolve into a technological powerhouse. He indicated that the SEC would support commendable initiatives aimed at enhancing our market’s ability to create a strong ecosystem for the Nigerian capital market.
Additionally, Mr. Temi Popoola, the chief executive officer of NGX, stated that the Exchange is working tirelessly to launch and on-board a new asset class in collaboration with other major stakeholders, including SEC, CBN, Central Securities Clearing Systems (CSCS), and Pension Fund Operations Association of Nigeria (PenOp).
The Central Bank of Nigeria (CBN) deputy governor, Mrs. Aisha Ahmad, stated that tech had evolved from a business enabler to a fully-fledged sector, including some of the biggest businesses in the world like Meta and Google.
“Africa is a $2.7 trillion economy and for this growth to translate into broader economic impacts, we need more local investor participation and I’m particularly excited about the NGX’s Technology Board plan which will help grow the listings of Nigerian and Africa tech companies. It will aid price discovery of tech industry valuations, and channel capital to tech and other sectors,” she said.
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