How youths, technology can advance capital markets-Osinbajo

Vice President Yemi Osinbajo has said there is more room to redefine the exchange for international competitiveness and the largest concentration of young people in the primary market that Nigeria is in a better position to advance its capital markets locally and globally.

Osinbajo disclosed this when delivered a keynote speech Tuesday in Abuja at the first Capital Market Conference of the Nigerian Exchange (NGX) Group, themed: “The Future Ready Capital Market: Innovating for Nigeria’s Sustainable Recovery.”

Vice President stated that, “every smart investor must be looking now at how to be a part of the miracle of the Nigerian Unicorns, the about five or six indigenous Nigerian companies (driven by young Nigerians) that became billion-dollar enterprises since 2015 in the midst of two recessions.”

The Vice President, who emphasized the digital transformation of the markets, highlighted the many opportunities this move would provide for the capital markets, which includes bringing in more young investors.

He advised the adoption of technology “to bring in a new crop of young investors, many of who use their smartphones primarily for engaging with commerce and banking activities today. And you have commendably begun the journey to the digital transformation of the market, following the highly successful example of the banks and, of course, the telcos.”

The VP added, “today, the huge retail outlets already created by the telcos with well over a hundred million subscribers, the wide reach of banks, especially with the numerous financial inclusion initiatives, make this probably the most auspicious moment for digitizing the capital market to bring in the millions of new young retail investors.”

The VP also noted the efforts of the NGX Technology Board to attract tech companies he referred to as ‘the present and future tech unicorns’ to the market as a viable option for raising capital.

Prof. Osinbajo stated that technology will also give “more investors the opportunity to benefit from the phenomenal growth of these companies.”

However, he observed that “we must work gingerly to ensure that where policy may be involved, we enhance and not encumber the ability of these companies to raise capital quickly and efficiently. This, of course, will call for mirroring successful global best practices.”

Prof. Osinbajo, who noted that this was probably the most exciting time in the history of capital markets in Nigeria, added that the African Continental Free Trade Agreement (AfCFTA) also offered exciting new prospects for cross-border listings, activity, and the formation of long-term capital.

“Your brand campaign, ‘the Stock of which Africa is made of’ which was well commended by Mr. President is not only imaginative but bold and focused. I think of importance now is that the NGX must work with government AfCFTA negotiators, especially as the process progresses to setting the rules in the service sector,” he submitted.

Urging the NGX to see itself as a critical player in the AfCFTA negotiations, the VP added that “we are at a point where we are looking at negotiating Service Rules, we have looked at Rules of Origin already, so this is the time to come into play to get the best deals possible from all our partners all across Africa.”