The Nigerian stock exchange NSE plans to explore innovative technologies such as blockchain and Distributed Ledger Technology (DLT) to raise capitals. This is part of the effort of the stock exchange to align the capital market with emerging financial technologies (fintech) as reported by local news outlet the nation Nigeria.
Adopting Blockchain Tech To Raise Capital
According to the Nation Nigeria, the Chief Executive Officer of NSE, 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. Blockchain and DLT allow transfer and sharing of digital data across multiple sites without central storage or administrator.
Also, Onyema explained that the use of fintech allows deepening the capital market and as well achieve sustainable economic growth by empowering a larger portion of the populace to access financial services. The technology equally unlocks 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, Onyema said.
Further, Onyema explained the focus of the stock exchange on delivering on its mandate to be Africa’s Preferred Exchange Hub. However, the exchange is not neglecting the bigger picture which Onyema stated is to create a dynamic marketplace that fuels growth and empowers people towards excellence in business and ventures.
NSE’s Support For Fintech
According to The Nation, Onyema stated that the NSE has been supportive of fintech and start-ups with the introduction of the growth board of the Exchange. The board caters for companies with high growth prospects, especially fintechs emerging from venture capital management to more mature management that would require public investment and corporate consolidation.
With the support of the exchange, Onyema noted that companies with high growth potential would be able to leverage public finance for growth and expansion.
Also, while Onyema was speaking at a fintech event hosted by the NSE, He noted that 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.
Meanwhile, the report of KPMG’s “2018 Global Analysis of Investment” reveals that equity investment into global FinTech companies almost tripled from $18.9 billion to $50.8 billion between 2013 and 2017, and this has seen more increase.
Meanwhile, adoption of the blockchain tech by the NSE is part of the wave of adoption of the technology globally. Adoption of the technology should spread more in Nigeria and some other African countries soon.