Nigerian Exchange Limited (“NGX” or “The Exchange”) and MTN Nigeria Communications Plc (MTNN) have announced the signing of a Memorandum of Understanding (MoU) to further promote financial literacy and enhance retail participation in the Nigerian capital market.
The announcement was made at the signing ceremony led by the Chief Executive Officer (CEO), NGX, Mr. Temi Popoola and the CEO, MTNN, Mr. Karl Toriola.
The MoU is a two-year partnership that will see NGX and MTNN collaborate to develop capital market solutions, leverage technology to support data dissemination and technology-as-a-service, promote capacity development, and eliminate barriers to retail participation in the capital market.
Speaking about the MoU, the CEO, NGX, Mr. Popoola stated, “In building on our rich heritage as the first and foremost multi-asset securities exchange in Nigeria we are resolute in our commitment to democratize finance in Nigeria by leveraging current advancements in technology and relying on strategic partnerships. With its customer base of over 68 million customers, MTNN provides invaluable access to a large pool of potential retail investors who can play an important role in Nigeria’s capital market, deepening their own financial resilience in the process. This collaboration with MTNN aligns with our aspiration to build an open, professional and vibrant exchange and we are indeed excited about this NGX era.”
The CEO, MTNN, Mr. Karl Toriola added, “AT MTNN, we believe we have a responsibility to ensure that our customers not only stay connected but can access increasing value and better services through our network, deepening their participation in the digital economy. Our collaboration with NGX gives us the opportunity to empower our customer base with the tools and the knowledge to engage effectively with the capital market and meet their financial and investment objectives. There is no better way to demonstrate our commitment to this than through the just concluded public offer for sale of MTNN shares, designed to enhance retail shareholder participation in the value that we create. We continue to identify other areas of cooperation with NGX and we look forward to a mutually beneficial partnership that will contribute to the inclusive growth of the Nigerian economy.”
MTNN recently completed a public offer of the sale of 575 million ordinary shares in MTNN held by the MTN Group leveraging the NGX sponsored digital platform. The offer which was the first ever end-to-end digital offer in the Nigerian capital markets was oversubscribed by 139.4%. The deployment of an electronic primary offer platform is consistent with the commitment of NGX to enhance the efficiency and reach of the Public Offer (PO) subscription process and operational work-flow to support issuers in raising capital and enhance the reach of POs while promoting financial inclusion and retail investors’ participation in the market.