The Nigerian Stock Exchange has signed a capital market agreement with the London Stock Exchange to build cooperation and encourage mutual development between both exchanges.

The pact was signed on Tuesday at a United Kingdom Trade and Investment and the Emerging Capital Market Group event in Lagos. Oscar Onyema, NSE’s Chief Executive Officer, Nikhil Rathi, LSEG’s Head of International Development, and Ibukun Adebayo, Co-Head of Emerging Markets and Head of Primary Markets, LSEG, were present and signatories at the signing ceremony.

The agreement further strengthens the Nigerian exchange’s reputation as one of Africa’s top capital markets. It also allows local companies greater access to international finance as the agreement offers a window for dual listing on both bourses.

Set to run for an initial period of two years, it follows the recent implementation of a new settlement process between the UK and Nigeria.

“Today’s agreement is another major step towards our goal of ensuring that all companies that have substantial operations in Africa are accessible to both Nigerian and international investors. In addition, we will be ensuring that our leading companies achieve the global profile and international institutional investment they deserve,” Onyema said.

Rathi however explained that this deal was a reflection of the global investment community’s keen interest in Nigeria, which is one of the most promising opportunities for capital markets development worldwide.

“As the world’s most international exchange, LSEG looks forward to partnering with the NSE in showcasing the opportunities the rapidly growing Nigerian economy offers investors,” he said.

Despite the recent fall in oil prices, the London Exchange is excited about the partnership and looks forward to showcasing the opportunities the Nigerian economy offers investors. This further justifies Nigeria’s stance that its financial market remains very attractive to international investors.