SEC Grants Approval-in-Principle for New Securities Exchange, Contisx

Nigeria’s capital market is set for a potential expansion following the decision by the Securities and Exchange Commission (SEC) to grant Approval-in-Principle (AIP) for the establishment of Contisx Securities Exchange Plc, a new full-service securities exchange targeting a September 2026 launch.

The development was disclosed on Monday by the founder of the proposed exchange, Ndubuisi Ekekwe, who shared the announcement through his verified X (formerly Twitter) handle.

According to Ekekwe, the new exchange is designed to deepen capital formation, broaden investor participation, and expand the structure of Nigeria’s capital market, which has historically been dominated by a single primary exchange.

Nigeria’s equities trading segment is currently largely controlled by Nigerian Exchange Limited (NGX), with limited alternatives such as NASD OTC Securities Exchange providing over-the-counter trading for unlisted securities.

The proposed Contisx platform is expected to operate as a full-service securities exchange, supporting both public and private markets while facilitating derivatives trading across a range of financial instruments. These include:

• Equities

• Corporate bonds

• Government bonds

• Commercial papers

• Exchange-traded funds (ETFs)

Market analysts say the entry of a new exchange could introduce competition, innovation, and broader access to investment opportunities within Nigeria’s financial ecosystem.

Ekekwe explained that the exchange is being built on the concept of “investment inclusion,” which aims to mobilise idle capital across the Nigerian economy and channel it into productive investments.

According to him, a significant volume of cash remains outside the formal financial system, limiting its potential contribution to economic growth.

He noted that if even a portion of these funds were redirected into structured investment products such as sovereign instruments, both citizens and the government could benefit.

“If we can channel even 50 percent of that into simple sovereign instruments at about 10 percent, that would generate roughly N250 billion in returns for citizens, while also providing the government with capital to fund development,” Ekekwe said.

He added that the exchange has begun a countdown toward its planned launch in September 2026, while inviting stakeholders across the country to participate in the initiative.

As part of its rollout plan, Contisx intends to adopt a decentralised operational model aimed at increasing access to capital markets across different regions of the country.

The exchange plans to establish its headquarters in Owerri, while opening regional centres in key commercial hubs such as:

• Aba

• Kano

• Ibadan

The platform is expected to serve businesses, cooperatives, and state governments seeking alternative avenues to raise capital, while also attracting retail and institutional investors who may have previously been excluded from formal investment channels.

Regulatory reforms supporting new exchanges

Ekekwe also highlighted the role of recent regulatory reforms in enabling the project, noting that the Investments and Securities Act 2025 provides a stronger legal framework for capital market development and the establishment of new trading platforms.

The law is widely regarded as part of broader efforts by regulators to modernise Nigeria’s capital market and improve its ability to mobilise long-term financing for economic growth.

The Approval-in-Principle granted by the SEC represents an early stage in the regulatory process. It allows the promoters of Contisx to proceed with final operational, technological, and compliance preparations before obtaining a full operational licence.

Industry observers note that the AIP stage is critical because it ensures that proposed exchanges meet the regulator’s strict governance, infrastructure, and compliance requirements.

Potential impact on Nigeria’s economy
The emergence of a new securities exchange is seen as aligning with the regulator’s broader objective of repositioning Nigeria’s capital market as a key source of long-term funding for national development.

With Nigeria facing a significant infrastructure financing gap, policymakers have increasingly emphasised the need to strengthen capital market institutions to mobilise domestic savings and attract investment.

Ekekwe expressed optimism that the next decade could mark a turning point for Nigeria’s financial markets, stating that new exchanges such as Contisx could serve as catalysts for inclusive economic growth, improved capital mobilisation, and expanded wealth creation opportunities for Nigerians.