To aid investors access to ordinary shares of offshore companies or foreign securities, the Nigerian Exchange Limited (NGX), on Thursday, announced that it is looking at introducing Nigerian Depository Receipts (NDRs).
The Exchange also identified the tokenisation of Nigerian assets as a smart way to attract “Gen-Zs and Millennials” to the investment market.
The Chief Executive Officer, Jude Chiemeka, stated this at an Investor Education Series webinar themed; Nigerian Depository Receipt: Unlocking Global Investment Opportunities in Nigeria’s Capital Market.
While stating that the webinar was part of the exchange’s ongoing efforts to drive innovation and diversify investment offerings within the capital market, Chiemeka explained that the exchange is exploring innovative avenues to modernize its operations and attract a broader range of investors, including the introduction of depository receipts.
“As we stand at this pivotal moment in Nigeria’s capital market, the introduction of NDRs will serve as a novel product and will be a landmark achievement as the first of its kind in West Africa, thus representing a transformative milestone in our financial ecosystem.
“This instrument will provide investors with diversified opportunities by granting access to foreign securities and play a significant role in enhancing market liquidity and encouraging portfolio optimisation”, he said.
