The Nigerian Exchange is collaborating with the Central Securities Clearing System (CSCS) and Euroclear to develop a dollar settlement platform aimed at enabling tech startups to raise capital in dollars.
Jude Chiemeka, head of capital markets at NGX, explains that while public markets are typically viable for capital raising, fintech companies have often chosen private funding routes due to regulatory disclosure mandates and stricter governance requirements.
To address these challenges, NGX is seeking approval from the U.S. Securities and Exchange Commission to establish a technology board for fintechs and tech companies, providing them with a platform for capital raising. Chiemeka states, “NGX is partnering with CSCS and Euroclear to create a dollar settlement platform that allows both startups and established tech companies to raise money in dollars. We have adjusted listing procedures for tech companies, relaxing requirements around the number of shareholders and years in operation to facilitate these listings.”
The exchange operator emphasizes the benefits of public listings, noting that publicly traded companies contribute more in taxes and typically exhibit better governance, resulting in advantages for the government. This initiative aims to encourage more firms to explore local markets for funding opportunities.