NGX Group's Digital Drive for Financial Inclusion and Innovation

At the heart of Africa's economic transformation, digital innovation is reshaping financial services and opening doors for millions of Nigerians. NGX Group is proud to champion this digital transformation and leverage our investment in technology to promote financial inclusion and create a more accessible, efficient financial ecosystem. 

NGX Invest: Pioneering Digital Financial Access 

NGX Invest is at the core of our digital strategy. It’s a groundbreaking e-offering platform designed to streamline the distribution of securities in Nigeria's capital market. NGX Invest empowers investors by simplifying access to primary market transactions, much like transferring money through a mobile app. This platform is accessible via invest.ngxgroup.com. Its user-friendly interface allows investors to onboard seamlessly and verify their identities through the Nigeria Inter-Bank Settlement System (NIBSS), using their Bank Verification Number (BVN). With NGX Invest, the traditionally complex and time-consuming process of investing is reduced to a few clicks, making it easier for investors across Nigeria, including those in underserved areas, to participate in the capital market. 

The development of the platform was a collaborative effort between our Board, the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), Central Securities Clearing System (CSCS) Plc, Nigeria Inter-Bank Settlement Systems PLC, and our valued capital market partners. 

Our commitment to innovation was proven during the COVID-19 pandemic, as Nigerian Exchange Limited (NGX), our exchange subsidiary, operated remotely for nearly three years without interruption, setting a benchmark for operational resilience. NGX Invest builds on this experience, further strengthening market infrastructure and expanding access to financial opportunities. 

Democratising Capital Market Participation 

NGX Invest removes traditional barriers that have limited retail investor participation. As part of our broader goal to drive financial inclusion, we are focusing on making investments more accessible and creating a secure, transparent and compliant environment. Through advanced digital infrastructure, real-time verification and integration with the Central Securities Clearing System (CSCS), NGX Invest offers unparalleled transparency and security, ensuring investor confidence. By allowing banks to integrate their channels into the platform, we are also enabling seamless financial transactions that enhance liquidity and market flow. 

This democratisation of capital market access is essential, especially in Nigeria, where fewer than 500,000 individuals actively participate in the market. By August 2024, NGX Invest had attracted nearly 60,000 investors. Through partnerships with banks, we anticipate reaching millions more, giving more than 60 million bank customers access to the platform. Such developments underscore NGX Group’s mission to use technology as a tool to bridge the financial-inclusion gap. 

Recognising the need for investors to have quick access to market information, NGX, in partnership with telcos, developed a USSD code, *5474#. By dialling the code, retail investors can check share prices, daily performance lists and kickstart the process of opening a trading account.  

Expanding Reach and Driving Economic Growth 

NGX Invest is instrumental in fostering economic growth by tapping into underrepresented groups, particularly young Nigerians and women. For example, the first digital public offering in 2021 attracted more than 150,000 new retail investors - 75 percent women and 85 percent under 40 years. NGX Invest is set to surpass these milestones by continuing to engage Nigeria’s tech-savvy younger population. 

Technology is vital for financial inclusion, but financial literacy is equally essential because it empowers individuals to make informed decisions. NGX is actively involved in financial-literacy initiatives, particularly targeting young population. 

During Global Money Week (GMW) in March, NGX organised a symposium in Lagos ("Protect Your Money, Secure Your Future"). Hundreds of secondary-school students learned about financial planning, risk management and responsible money management. NGX extended its financial literacy efforts to the digital space through an X (formerly Twitter) Spaces session with a finance influencer. This session reached more than 3,500 users, amplifying the impact of NGX’s financial literacy initiatives. 

NGX Regulation Ltd (NGX RegCo), our independent regulation subsidiary, partnered with Women’s World Banking and launched the EquipHER initiative in November 2023. This initiative brings together women from all walks of life - entrepreneurs, career professionals and students - educating them on investing and business development. 

Throughout the first half of 2024, NGX engaged students and the public through various initiatives, including the X-Tour, a financial-literacy platform that offers students hands-on experience at the NGX trading floor. Students from institutions such as Chrisland Schools, Covenant University and Lagos State University have participated, gaining insights into the capital market and sparking their interest in finance and investments. 

Additionally, NGX launched X-Lit, a bespoke initiative focused on spreading the message of capital-market investing. Through X-Lit, NGX officials have educated diverse groups, such as National Youth Service Corps members and retiring Nigeria Armed Forces personnel. 

The Investor Education Series is part of NGX Group’s broader strategy to boost retail participation in the capital market. These programs are essential to ensuring that, as we make financial markets more accessible, individuals are equipped to take advantage of the opportunities available to them. 

Building for the Future 

Our vision at NGX Group extends beyond increasing retail participation. We aim to create a financial ecosystem that nurtures economic growth and wealth creation. The inclusion of financial-literacy programs alongside NGX Invest is designed to engage, educate and empower Nigerians to take control of their financial futures. Furthermore, we are continuously improving our digital offerings, streamlining processes such as dividend distribution. With NGX Invest, investors can now automate dividend payments directly to their accounts, significantly improving efficiency and convenience. 

The Road Ahead 

As we move forward, NGX Group is committed to expanding the capabilities of NGX Invest and other digital initiatives. While our current focus is on the primary market, NGX Invest is well-positioned to expand in line with regulatory frameworks, providing retail-suitable asset classes and further democratising financial opportunities. 

We believe that digital innovation, when combined with targeted educational efforts, has the power to reshape Nigeria's financial landscape. By offering seamless, transparent access to the capital market, NGX Group is not only advancing financial inclusion but also building the foundation for a more inclusive, dynamic economy. 

Our goal is clear: to create a financial ecosystem that works for everyone, empowering Nigerians, regardless of their background or location, to participate in the financial system and secure a prosperous future.