Nigerian Stock Exchange Set To Use Blockchain As New Technology For Raising Capital.
Blockchain and DLT allow transfer and sharing of digital data across multiple sites without a central storage or administrator. Therefore, the Nigerian Stock Exchange (NSE) begun exploring the use of innovative technologies such as Blockchain and Distributed Ledger Technology (DLT) as a better means of raising capital as part of the efforts to juxtapose the capital market with emerging financial technologies.
According to the Nigerian Stock Exchange Chief Executive Officer Mr Oscar Onyema, the Exchange is considering creating alternative and innovative platforms for capital raising through the use of new technologies such as Blockchain and DLT.
He further stated that Financial technology offers opportunity to deepen the capital market and also achieve sustainable economic growth by empowering a larger portion of the populace to access financial services while simultaneously unlocking efficiencies in product and service delivery for financial institutions as well as increasing transparency and resilience of the Nigerian capital market and larger financial ecosystem.
Mr. Oscar Onyema explicated that while the Nigerian Stock Exchange is focused on delivering on its mandate to be Africa’s Preferred Exchange Hub, the broader vision for the exchange is to create a dynamic marketplace that engineers growth and empowers people towards excellence in business and ventures.
According to him, the Exchange has also demonstrated its supports for Financial techs and start-ups with the introduction of the growth board of the Exchange, which caters for companies with high growth prospects, especially Financial techs emerging from venture capital management to a more mature management that would require public investment and corporate consolidation. With the support from the Exchange, High growth potential companies will be able to leverage public finance for growth and expansion.
The Theme of the Financial Tech event hosted by Nigerian Stock Exchange: “Growth Funding and Strategic Capital Raise – Extending Financial Inclusiveness through the Capital Market” is of particular interest to the Exchange due to its connection to its core function as a hub for accessing capital.
According to KPMG’s “2018 Global Analysis of Investment” equity investment into global Financial Tech companies almost tripled from $18.9 billion to $50.8 billion between 2013 and 2017, gaining traction subsequently. The global picture of capital flow into Financial Techs especially in emerging markets is proof that Financial Techs are important economic catalysts in the 4th Industrial Revolution. Surprisingly, foreign investors seem to be seeing these gains better than local investors as statistics show that they have dominated capital raise for indigenous start-ups in the last couple of years.