By Abdullahi Alhassan

The Nigerian Exchange Group (NGX) has embarked on a strategic visit to the B3 Stock Exchange in Sao Paulo, Brazil, to explore potential partnership opportunities and learn from the Brazilian exchange’s experience in establishing a vibrant online trading system, instituting world-class regulation, and driving growth in listing.

The NGX delegation, led by Alhaji (Dr) Umaru Kwairanga, Chairman of the NGX Group, was warmly welcomed by the B3 Stock Exchange team. In his opening remarks, Kwairanga expressed appreciation for the warm welcome and acknowledged the rich history and progress of Brazil as a sovereign nation.

Alhaji Umar Kwairanga highlighted the similarities between Brazil and Nigeria, noting that both countries have diverse ecosystems, abundant natural and human resources, and a large population.

He emphasised that Nigeria’s economy is driven by small- and medium-scale enterprises, with a significant role played by government-owned enterprises.

The NGX Chairman discussed the history of the Nigerian Exchange Group, which was founded over 60 years ago and presently has over 400 listed companies/securities and a market capitalisation of almost 100 trillion Naira.

He noted that the NGX transformed from a mutual organisation limited by guarantee to a for-profit public company owned and run for the benefit of thousands of shareholders just four years ago.

Alhaji Umar Kwairanga highlighted the challenges that the NGX has faced since its transformation, including governance and regulation, technology, market expansion, product development, cost optimisation, and profitability.

He expressed confidence that the NGX can learn from B3’s experience and success in establishing a vibrant online trading system, instituting world-class regulation, and driving growth in listing.

The NGX Chairman identified several potential areas for cooperation between the B3 and the NGX, including technology sharing, best practices, and expertise in online trading systems and market infrastructure.

He pointed out that “Collaborating on regulatory frameworks and standards to promote market integrity and investor confidence, exploring opportunities for cross-listing, and promoting the listing of companies on both exchanges.

Sharing experiences and strategies for expanding market participation and increasing investor engagement.

Umar Kwairanga emphasised that the partnership between the two exchanges will be mutually beneficial, enabling both parties to learn from each other and leverage each other’s strengths.

He also expressed optimism that the visit will yield significant benefits for both exchanges and pave the way for future collaborations.

The visit by the NGX to the B3 Stock Exchange marks an important step in strengthening the relationship between the two exchanges and exploring potential partnership opportunities.

By learning from B3’s experience and expertise, the NGX aims to enhance its own capabilities and promote the growth and development of the Nigerian capital market.