NIGERIA Law and Practice Contributed by: Isa Alade, Seyi Bella, Ayodele Adeyemi-Faboya and Ayomikun Ogunkanmi, Banwo & Ighodalo
Exchange, the Nigeria Commodity Exchange, and the FMDQ. Pursuant to the completion of the demutualisa - tion process of the NSE in 2021, a new non-oper - ating holding company, the Nigerian Exchange Group Plc (NGX Group), was created. The NGX Group has three operating subsidiaries: • NGX Exchange Limited, the operating exchange; • NGX Regulation Limited, the independent regulation company; and • NGX Real Estate Limited, the real estate company. The NGX is responsible for listing, trading, tech - nology, market data and other core exchange functions. The NGX also provides for the Growth Board, which is a trading platform available to small and mid-sized fast-growth companies in order to raise critical long-term capital at rela - tively low cost so they can realise their business potential. The main regulation for listing on the NGX is the NGX Rulebook of 2015, which may be amended occasionally. The regulations for listing securi - ties on the FMDQ include the FMDQ Bond List - ing and Quotation Rules December 2014, the FMDQ Short-Term Bonds Registration Process and Listing Rules 2016, the Sukuk Listing Rules 2017, and the FMDQ Commercial Paper Registration and Quo - tation Rules April 2021, whereas the regulation for listing on the NASD is the NASD OTC Market Rules. These rules are, however, amended from time to time. FMDQ Private Markets Limited, a subsidiary of FMDQ Group Plc, offers a platform for the
registration of instruments issued by private companies in the capital markets. This platform facilitates the disclosure of private companies’ activities in the Nigerian capital markets by serv - ing as an information repository – the information is recorded via a restricted access portal called the Private Companies’ Securities Information and Distribution Portal. In addition, FMDQ Private Markets features three boards for private company bonds: the Private Companies’ Bonds (PCB) Main Board, the Growth Board, and the Cradle Board. The specific board a company is listed on depends on the nature of the issuer and its ability to meet the relevant requirements. 6.2 Regulation of Different Asset Classes The rules and regulations applicable to each asset class extend to securities listing, transac - tion monitoring, and compliance by members with the ISA, the SEC Rules and the various rules of the applicable exchanges and trade points. The ISA enables the SEC to oversee the deriva - tives market. In December 2019, the SEC approved and pub - lished rules that regulate both exchange-traded and OTC derivatives, as specified. Notwith - standing the foregoing and in line with the Digi - tal Assets Rules and the ARIP, cryptocurrency- related transactions will likely be regulated under the foregoing rather than the broader rules on derivative trading. 6.3 Impact of the Emergence of Cryptocurrency Exchanges The adoption of cryptocurrency in Nigeria was initially met with scepticism and regulatory uncertainties, but it has more recently gained acceptance. The first positive response was given by the SEC in September 2020 when it
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