SEC Grants Approval-in-Principle for New Securities Exchange, Targets 2026 Launch

The Securities and Exchange Commission has granted Approval-in-Principle for the establishment of Contisx Securities Exchange Plc, a new securities trading platform expected to commence operations in September 2026.

The approval marks a significant step toward expanding Nigeria’s capital market infrastructure, with the proposed exchange positioned to complement existing platforms and broaden access to investment opportunities. The development was disclosed by the promoter of the exchange, who outlined its strategic focus on inclusion, innovation, and capital mobilisation.

Contisx is designed as a full-service securities exchange that will support both public and private market transactions. The platform is expected to facilitate trading across a wide range of financial instruments, including equities, corporate bonds, government securities, commercial papers, derivatives, and exchange-traded funds.

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The proposed exchange aims to deepen capital formation by providing an alternative channel for raising funds, particularly for businesses and institutions that may not fully access existing market structures. It is also expected to expand investor participation by targeting a broader demographic, including retail investors and underserved segments of the economy.

Nigeria’s capital market is currently dominated by a limited number of trading platforms, with the Nigerian Exchange serving as the primary equities market. Over-the-counter transactions are also conducted through alternative systems, but overall market participation remains relatively concentrated.

The introduction of a new exchange is expected to introduce competition, enhance efficiency, and improve market depth. It also aligns with ongoing regulatory efforts to modernise the financial system and attract greater domestic and international investment.

According to details provided, Contisx will operate with a decentralised structure, with plans to establish its headquarters in Owerri and regional centres in key commercial hubs, including Aba, Kano, and Ibadan. This approach is intended to increase accessibility and ensure wider geographic participation in capital market activities.

The exchange is also expected to focus on mobilising idle capital within the Nigerian economy. A significant volume of funds remains outside the formal financial system, limiting its contribution to economic growth. By creating accessible investment channels, the platform aims to convert such idle funds into productive capital.

In addition to traditional securities, the exchange will support innovative instruments designed to meet evolving market needs. This includes facilitating investment in subnational bonds, enabling state governments to access funding for infrastructure and development projects.

Market stakeholders have noted that expanding the range of available financial instruments could help address long-standing challenges related to capital access, particularly for small and medium-sized enterprises. By providing alternative funding sources, the exchange could support business expansion and job creation.

The initiative is also expected to leverage recent regulatory reforms within the capital market. The Investments and Securities Act 2025 provides a strengthened legal and operational framework for market participants, enhancing investor protection and improving overall market governance.

Pre-launch activities for the exchange are already underway, including infrastructure development and stakeholder engagement. The promoters have indicated that the platform will be rolled out in phases, with initial focus on building market confidence and ensuring regulatory compliance.

Industry observers view the development as part of a broader push to diversify Nigeria’s financial ecosystem and reduce reliance on traditional banking channels for funding. Expanding capital market participation is seen as critical to supporting long-term economic growth and resilience.

The new exchange is expected to provide opportunities for a wide range of participants, including corporations, cooperatives, institutional investors, and individual investors. By broadening access and improving market infrastructure, it aims to enhance liquidity and deepen financial inclusion.

Regulators are expected to continue monitoring the development closely to ensure compliance with established standards and to maintain market stability. The approval-in-principle signals regulatory support for innovation while maintaining oversight of emerging platforms.

The planned launch of Contisx in 2026 represents a significant addition to Nigeria’s financial landscape, with potential implications for investment flows, capital formation, and market competitiveness. Stakeholders are expected to watch its rollout closely as the country continues efforts to strengthen its capital market and attract investment.