TheCable

The Nigerian Stock Exchange (NSE) and London Stock Exchange Group (LSEG) have signed a capital markets agreement to strengthen cooperation and promote mutual development between the two exchanges.

Aimed at supporting African companies seeking dual listings in London and Lagos, the agreement was signed at the UKTI and the Emerging Capital event held at the Nigerian Stock Exchange on Tuesday.

Signatories at the signing ceremony were Oscar  Onyema, chief executive officer NSE; Nikhil Rathi LSEG’s chief of staff and head of international development and Ibukun Adebayo, co-head of emerging markets and head of primary markets.

“The agreement signed today is a reflection of the global investment community’s strong desire to be a part of the Nigeria story,” Rathi said.

“As the world’s most international exchange, LSEG looks forward to partnering with the NSE in showcasing the opportunities the rapidly growing Nigerian economy offers investors.”

According to a statement obtained from NSE website, the agreement was witnessed by Roger Gifford, chairman of the UK Foreign & Commonwealth Office’s Nigeria Emerging Capital Markets Task Force (ECMT) and senior executives at the Nigerian Stock Exchange.

Gifford expressed his delight at witnessing the agreement.

“This is exactly the sort of ambitious project the ECMT Nigeria was launched to support,” he said.

“Nigeria is, without doubt, one of the most promising opportunities for capital markets development worldwide.”

The agreement is for an initial period of two years, following the implementation earlier this 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, the statement added.

Seplat, the oil and gas business, which raised $500m in an IPO via this new mechanism in April, was the first company to simultaneously dual list shares in London and Nigeria.

Onyema  described the agreement as another major step towards the goal of ensuring that all companies that have substantial operations in Africa are accessible to both Nigerian and international investors.

“In addition, we will be ensuring that our leading companies achieve the global profile and international institutional investment they deserve,” he said.