Impact of Digitalisation on the Efficiency of Nigerian Exchange Limited

Abstract

Globally, financial markets have experienced a digital transformation to build investors' trust, promote market access, transparency, transaction speed, and correctness. The study adopted descriptive survey design in order to examine the effect of digitalisation on the performance of Nigerian Exchange Limited. The population for the study is the stockbrokers drawn from the ninety-eight (98) Stockbroking companies duly registered with the Securities and Exchange Commission and accredited by the Debt Management Office (DMO) to sell and distribute FGN Savings Bonds in Nigeria. The study adopted simple random sampling technique and respondents were three hundred and ninety-two (392), four (4) respondents from each Stockbroking firms. Using self-administered questionnaire, the research collected primary data from the respondents. Three hundred and forty-seven (347) copies of the questionnaires were filled and found usable for the purpose of the analysis out of three hundred and ninety-two (392) which were administered. The theoretical hypothesis was tested by linear regression. The data collected were analyzed using Statistical Package for Social Science (SPSS) version 22. Regression results suggested a positive and significant association between the digital payment platforms and transaction speed. The result also revealed that digital finance services significantly affect the investors' participation in the Nigerian Exchange Limited. The study recommends that digital technology is a necessity for the improvement of the operations of Nigerian Exchange Limited, in order to keep pace with the global capital market trends and competition. Therefore, the study recommended that the Nigerian Exchange Limited should in addition to this automate more by adopting more payment solutions that are innovative so as to reduce on processing time.