NGX helps governments and companies to secure debts of N3.5trn

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N3.5 trillion worth of debt instruments have been raised from the capital market in 2022 with the help of Nigerian Exchange (NGX) Limited.

These funds were secured by federal, state, and corporate organizations through the issuance of bonds and commercial paper, with the funds used to finance projects and business operations.

The NGX has always provided an avenue for organizations to seek cheap capital from investors by positioning itself as the premier place to raise funds.

According to NGX Capital Markets Division Head, Mr. Jude Chiemeka, the capital market could serve as a main source of massive capital mobilization to finance development projects, and NGX had implemented a series of incentives, programs and workshops investor capacity building

“The pension fund industry, for example, has been able to take advantage of the issuances made by the DMO in recent times, and a large amount of financing comes from them,” he said in the dialogue of the Integrated National Financing Framework (INFF). from Nigeria on Channels. themed tv How can Nigeria finance its development priorities?.

“As an exchange, we provide the platform that will allow the government to finance projects through green instruments that these investors can invest in and ultimately benefit from the returns. And that’s why it’s critical to ensure there’s constant investor education, strong governance and regulation.

“If you take a look at the recently revamped Capital Markets Master Plan, there is a conversation about increasing retail investor participation in our markets,” he added.

INFF emerged as the result of a partnership between the FG, the United Nations Development Program (UNDP) and the European Union (EU) to help Nigeria mobilize greater amounts of public and private resources to finance its development agenda.

Speaking further, Chiemeka said the goal is to renew the current level of active retail participation to 5 million by 2025.

“NGX has been able to facilitate the raising of around N3.5 trillion since January 2022 for companies, federal and state governments. We are very well equipped to support the financing of these capital projects because we have the right platform.

“Today, you talk about the African Exchange Linking Project, which started on November 18 and will launch in December. That gives Nigeria the ability to tap into the investor base in other capital markets to finance the projects to grow the economy and lift people out of poverty,” he stated.

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