The Nigerian Stock Exchange (NSE) and London Stock Exchange Group (LSEG) signed a capital markets agreement at the UKTI and the Emerging Capital event held at the Nigerian Stock Exchange. The objective of the agreement is to strengthen cooperation and promote mutual development between the two exchanges. The agreement supports African companies seeking dual listings in London and Lagos.
NSE’s Chief Executive Officer (CEO), Oscar N. Onyema, OON, as well as LSEG’s Chief Of Staff and Head of International Development Nikhil Rathi and Ibukun Adebayo Co-Head of Emerging Markets and Head of Primary Markets, LSEG were present and signatories at the signing ceremony. The agreement was witnessed by Sir Roger Gifford, Chairman of the UK Foreign & Commonwealth Office’s Nigeria Emerging Capital Markets Task Force and senior executives at the Nigerian Stock Exchange. The agreement is for an initial period of two years.
The agreement follows the implementation earlier this year of a new settlement process between the UK and Nigeria. This made significantly more efficient 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 $500m in an IPO via this new mechanism in April, was the first company to simultaneously dual list shares in London and Nigeria.
CEO of The Nigerian Stock Exchange, Mr. Oscar N. Onyema, OON, 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.”
Also commenting on the development, Mr. Nikhil Rathi, Head of International Development, LSEG said “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.”
Sir Roger Gifford, Country Head for the European Bank SEB, former Lord Mayor of London, and Co-Chairman of the UK Government’s Nigeria Emerging Capital Markets Task Force, said “I’m delighted to be here today to witness the signing of this agreement. This is exactly the sort of ambitious project the ECMT Nigeria was launched to support. Nigeria is without doubt one of the most promising opportunities for capital markets development worldwide. 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. ”
Notes to editors:
There are 9 Nigerian or Nigeria-focused companies quoted on London Stock Exchange including six oil & gas explorers and three major Nigerian banks. They have a collective market capitalisation of $14.2 bn. 115 Sub-Saharan Africa-focused companies are quoted on London Stock Exchange markets, comprising:
• 26 companies on the Main Market
• 3 GDR listings on the Main Market
• 2 GDR listings on the Professional Securities Market (PSM)
• 84 companies quoted on AIM, the growth market