The Nigerian Exchange (NGX) Limited and the Bank of Industry (BoI) have signed off on a partnership to promote market advocacy initiatives.
This Memorandum of Understanding (MoU), according to the two organisations, will widen capital market reach, build the capacity of stakeholders through financial literacy programs and promote listings.
According to the chief executive of the exchange, Mr Temi Popoola, the “collaboration will support various advocacy initiatives to develop the Nigerian capital market, promote information flow to small and medium enterprises (SMEs) about the capital market listing procedures and facilitate training for potential issuers on the various product initiatives.”
“NGX will work closely with BOI to create a seamless avenue for divestments through the listings of any of its investee companies on the Boards of NGX,” he added.
In a separate statement, Mr. Olukayode Pitan, Mr. Popoola’s counterpart at the BoI, stated that the relationship will result in the creation of programs that will educate all stakeholders, particularly large businesses and SMEs, on how to access alternative financing choices.
“Through this partnership with NGX, BOI will encourage companies in which it has equity holdings as well as its pool of current and past borrowers to approach the exchange for initial public listings which will serve as a veritable window for divestments and access to wider funding options,” he stated.