The nation’s capital market in 2024 has witnessed more activities following the Central Bank of Nigeria (CBN) recapitalisation policy mandating banks to raise their capital base within 24 months to prepare them to support nation’s target of meeting $1trllion economy.
The CBN capital base policy does not only put banks under pressure to raise additional fund to meet March 31, 2026 deadline stipulated by apex bank, the exercise provided another opportunity to reposition Nigeria banks to do heavy ticket investment, compete favourable in international and other pan- African banking group, particularly in trade finance.
As banks are strategizing on how to meet new capital base requirements, The Nigerian Exchange (NGX) within the period unveils NGX Invest, a groundbreaking digital platform designed to streamline Public Offerings and Rights Issues in the Nigerian capital market. The NGX Invest platform enhances transparency and accessibility in primary market transactions.
The launch of NGX Invest which coinciding with the CBN Banking Recapitalisation directive has prompted numerous offers for subscription and rights announcements by Nigerian banks. The platform according to capital market dealers have undoubtedly contribute to boosting the participation of retail investors in the capital market as the public offer digitalization provide an avenue for Nigerian youths who believed so much online transactions to participate in offer subscription within the period.
The NGX said that all banks that have raised funds in the market so far utilized the NGX Invest APIs to distribute their offerings to retail investors. Available data showed that three financial institutions, Guaranty Trust Holdings, Access Holdings Plc and Fidelity Bank Plc have jointly raised N878 billion.