Nigerians Buy Shares of Dangote other 156 Companies With USSD Codes
- The Nigerian exchange is attempting to boost the number of Nigerians who invest in publicly listed firms
- The most recent development is the plan to introduce the use of USSD codes via mobile phones for stock trading
- On the Nigerian exchange, there are 157 publicly traded companies with a combined market value of over N28 trillion
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Nigerian Exchange (NGX) has revealed plans to allow Nigerians buy shares and other securities at the stock market with the Unstructured Supplementary Service Data (USSD).
This was disclosed by Temi Popoola, NGX Chief Executive Officer while speaking during the annual review and preview of the capital market on Thursday, January 27, 2023.
According to him, the use of USSD (shortcode) is a collaborative arrangement being championed by the NGX in partnership with telecommunication companies, banks and other stakeholders.
The Nation reports that Popoola also said the USSD code will further digitize operations at the stock market and deepen activities at the market.
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According to him, the NGX would take a flexible approach to strategy execution in 2023, doubling down on its 2022 achievements and expanding on several levers.
He said the Exchange would also forge more strategic partnerships with development finance institutions, banks, both local and international to further develop the market.
"We hope to do more on trading where we increase data distribution to attract a broader investor base, especially from the retail side. We will use listings to fulfill strategic goals once the new administration takes office, including enhanced lobbying and involvement."
"NGX regards sustainability as not only necessary but also beneficial for its business, and work is currently underway to build a framework for certificates in carbon credits trading, subject to regulatory permission.
"As part of the capital market's digital transformation, the Exchange is working on the introduction of USSD in conjunction with telecoms and banks, as well as unlocking African capital markets through payment integration with Afreximbank's Pan African Payment Settlement System."
Other benefits of USSD code for stock trading
He added that the Exchange has also set its sight on the development of new products aimed at attracting the lower rung of the Nigerian demography.
"NGX is also focusing on encouraging young involvement with the launch of digital asset products enabled by blockchain technology, non-depository receipts and overall enlarging the pool of accessible liquidity in the market.
“Altogether, 2023 is likely to be a new dawn for the market and the Nigerian economy as significant events take shape in the macroeconomic and political environments."
SEC tells Nigerian youths to choose stocks over cryptocurrency
Meanwhile, in another report, the Securities and Exchange Commission (SEC) is encouraging young Nigerians to consider investing in capital markets.
Despite a recent surge, the commission is concerned that many Nigerian youths are uninterested in stock investing.
Meanwhile, the cryptocurrency market is yet to recover from its losses suffered toward the end of 2022.