Nigerian Stock Exchange forms strategic alliance with London counterpart

kemi-1The Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE) have strengthened their alliance to ease cross-border access between the two capital markets.

Chief Executive Officer of the NSE, Oscar Onyema when speaking at the 3rd ‘London & Lagos Capital Markets in Partnership’ Conference in London on Friday said, “Our collaboration with London Stock Exchange is deliberate and strategic. It is geared at encouraging seamless cross-border access between our capital markets to ultimately drive deeper capital markets that enable capital formation for businesses and governments; create larger liquidity pools and greater competitiveness for our investors; and enhance capacity and promote diversity of investment products to meet the needs of a wide range of investors and issuers.”

The duo exchanges met with the focus on building London-Lagos dual listing model and developing Nigerian capital markets.

The event, hosted in collaboration with the Nigerian Stock Exchange brings senior Nigerian policymakers including Minister of Finance, Federal Republic of Nigeria, Kemi Adeosun, Minister of Environment, Federal Republic of Nigeria, Amina Mohammed, the Rt Hon. Greg Hands MP, UK Minister of State for International Trade, Chief Executive Officer of London Stock Exchange Plc & Director of International Development, London Stock Exchange Group, Nikhil Rathi, Director General, Nigerian Pension Commission, Chinelo Anohu-Amazu; Nigerian business leaders such as Oscar Onyema, CEO, the NSE and Roger Brown, Chief Financial Officer, Seplat Petroleum together with global investors and advisors.

Rt Hon. Greg Hands MP, Minister of State for International Trade stated that, “I know from my own time in Nigeria that the UK and Nigeria have long enjoyed a close and prosperous business relationship. The UK is one of Nigeria’s largest investors and the Government is committed to boosting trade between our two countries. We are actively helping British companies export to Nigeria and Nigerian businesses to locate and expand in the UK. I welcome this initiative as a further step to deepen the commercial links between our nations.”

Chief Executive Officer of London Stock Exchange Plc & Director of International Development, London Stock Exchange Group, Nikhil Rathi said the event is a reflection of the global investment community’s strong desire to be a part of the Nigeria story.

According to him, “As the world’s most international exchange, we are ideally positioned to build on the success of existing dual listings in Nigeria and London, boosting global investor awareness of the country’s exciting growth trajectory. Our strong partnership with the NSE allows us a unique opportunity to showcase the rapid developments in Nigerian capital markets and the Nigerian economy.”

In November 2014, London Stock Exchange Group and NSE signed a capital markets agreement aimed at supporting African companies seeking dual listings in London and Lagos. The agreement followed the implementation earlier that 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, raised $500 million in an IPO via this new mechanism in 2014, and was the first company to simultaneously dual list shares in London and Nigeria.