NSE Signs Capital Market Agreement with London 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 listing in London and Lagos.

Speaking at the event which took place in Lagos, NSE’s Chief Executive Officer, Mr. Oscar Onyema said the agreement is another major step in the goal of the NSE to ensure 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”, he said.

The agreement follows the implementation earlier this year of a new settlement process between the UK and Nigeria which provides for more efficient 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.

Also commenting on the development, Head of International Development, LSEG, Mr. Nikhil Rathi, said the agreement 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, ” he said.

In his remarks, Co-Chairman of the UK Government’s Nigeria Emerging Capital Markets Task Force Roger Gifford said he is delighted to witness the signing of the 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, ” he said.

According to the NSE, there are 9 Nigerian or Nigeria-focused companies quoted on London Stock Exchange including six oil & gas explorers and three major Nigerian banks, which have a collective market capitalisation of $14.2 bn.

Besides, 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) and 84 companies quoted on AIM, the growth market.