By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) on Tuesday signed a pact with the London Stock Exchange Group (LSEG) to support African companies seeking dual listings in London and Lagos.
A statement from the NSE said the objective of the agreement is to strengthen cooperation and promote mutual development between the two (2) exchanges. The agreement is for an initial period of two years.
This is coming on the heels of the implementation earlier this year of a new settlement process between the United Kingdom (UK) and Nigeria which made it possible the listing and trading of ordinary shares of Nigerian companies listed in London, as well as those of UK companies on the Nigerian market.
‘’Seplat, the oil and gas business, which raised $500 million in an IPO via this new mechanism in April, was the first company to simultaneously dual list shares in London and Nigeria,’’ the NSE said.
“Today’s agreement is another major step towards our goal of ensuring that all companies that have substantial operations in Africa are accessible to both Nigerian and international investors. In addition, we will be ensuring that our leading companies achieve the global profile and international institutional investment they deserve,” Oscar Onyema, chief executive officer of the Nigerian bourse said.
While Nikhil Rathi, head of international development, LSEG affirmed that the agreement signed today is a reflection of the global investment community’s strong desire to be a part of the Nigeria story. ‘’As the world’s most international exchange, LSEG looks forward to partnering with the NSE in showcasing the opportunities the rapidly growing Nigerian economy offers investors,” Rathi added.
On his part, Roger Gifford, country head for the European Bank SEB, and Co-chairman of the UK Government’s Nigeria Emerging Capital Markets Task Force (ECMT) said this is exactly the sort of ambitious project the ECMT Nigeria was launched to support.
According to the former Lord Mayor of London, Nigeria is without doubt one of the most promising opportunities for capital markets development worldwide.
He further affirmed that an effective, transparent and well-governed capital market – across all asset classes – has the capacity to catalyse a nation’s quest for growth and development.
‘’In particular, functioning markets for corporate equity and debt reduce the dependence on bank capital and make investment securities available to a broader range of investors: institutional, private and international. This agreement will build on existing strong commercial and economic ties between the UK and Nigeria to our mutual benefit. I’m delighted to be here today to witness the signing of this agreement,’’ Gifford who witnesses the agreement added.
Ibukun Adebayo Co-head of emerging markets and head of primary markets, LSEG also witnessed the signing of the pact.
