NGX Canvasses Government Support For Listed Corporates To Tackle FX Challenges

Temi Popoola, CEO of the Nigerian Exchange Limited (NGX), has called upon the Federal Government and the Central Bank of Nigeria (CBN) to prioritize listed corporates in their procurement processes and streamline access to foreign exchange (FX).

“This isn’t just about listing companies on the Exchange; it’s about intentional advocacy,” Popoola emphasized at the MTN Capital Markets Day, stressing the significance of policy changes to invigorate the capital market.

Highlighting the hurdles faced by companies earning revenues in dollars, Popoola underlined the urgency to permit dividend payments in dollars, a step barred by current regulations. He asserted that resolving such limitations would not only benefit listed firms but also aid the government in tackling prevailing FX challenges.

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“Our ongoing discussions with regulators aim to address this, unlocking dormant dollars in domiciliary accounts for productive use in the economy,” he added, underscoring the collaborative effort between NGX and policymakers.

Popoola further disclosed active negotiations with the government to introduce supportive legislation, foreseeing increased listings as a catalyst for amplified government revenue.

He stressed the vital role of government backing in fostering the presence of numerous companies currently listed on the Exchange, citing their transparent operations, elevated tax contributions, and improved governance.

Regarding Nigeria’s reclassification from a frontier market to unclassified, Popoola debunked exaggerated claims about the immediate impact, citing the modest share of foreign investors in the market.

He indicated that much of the speculated capital outflow might have already occurred, dampening the short-term ramifications.

“Intentional advocacy is the game-changer for our capital market, far beyond mere company listings. Our discussions aim to unlock dormant dollars in domiciliary accounts for productive use in the economy. The real short-term impact is not as the headlines would suggest. A lot of those capital would have flown out already” -Popoola said.

The NGX CEO’s resounding call for policy shifts echoes a renewed hope agenda under President Bola Tinubu’s administration, presenting an opportunity for collaboration with market stakeholders to surmount economic challenges.