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International cooperation

NGX Group CEO Highlights Critical Role of Capital Markets in Strengthening Trade and Investment Ties

Strategic Insights

— 2 min read

Temi Popoola, Group Managing Director/Chief Executive Officer of Nigerian Exchange Group (NGX Group), emphasized the crucial function of capital markets in fortifying trade and investment relations between Nigeria and Brazil. Popoola made these remarks during a high-level business session on the sidelines of President Bola Ahmed Tinubu's state visit to Brazil, where five Memoranda of Understanding (MoUs) were signed between the two nations. Popoola positioned the NGX Group as a gateway for cross-border capital flows and a catalyst for deepening bilateral economic collaboration.

Key Takeaways:

  • NGX Group has nearly doubled its market capitalization in the past 18 months to about $90 billion, making it Africa's second-largest bourse by transaction size.
  • The exchange has introduced a Growth Board with lower entry barriers for smaller companies, partnering with the Bank of Industry (BoI) to channel funding and expand access to alternative financing options through private markets, crowdfunding, and receivables financing.
  • NGX Group has leadership roles in advancing regional integration through initiatives such as the African Exchanges Linkage Project and the recent investment in the Ethiopia Stock Exchange, aligned with the objectives of the African Continental Free Trade Area (AfCFTA).
  • An MoU between the Managing Director of Nigeria's Bank of Agriculture and Brazil's Minister for the National Bank for Economic and Social Development (BNDES) aims to strengthen collaboration in agricultural financing, investments, and joint projects.
  • The business session explored ways to expand bilateral relations beyond large corporates to include micro, small, and medium enterprises (MSMEs), with digital innovation identified as a critical enabler.
  • President Tinubu's delegation to Brazil included ministers and business leaders in a bid to deepen trade, investment, and economic cooperation between Africa's largest economy and Latin America's biggest market.
  • Popoola stressed the ease of investing in Nigeria, with markets no longer digital, intermediate steps are established, and capital flows freely.

Statistics:

  • $90 billion: The market capitalization of the NGX Group in the past 18 months.
  • 18 months: The time frame during which NGX Group's market capitalization nearly doubled.
  • Five: The number of Memoranda of Understanding (MoUs) signed between Nigeria and Brazil.
  • $90 billion: The market capitalization of the NGX Group.
  • Two days: The duration of President Tinubu's state visit to Brazil.

Sources:

  • A statement by the NGX Group on Wednesday.
  • The NGX Group CEO, Temi Popoola.
  • President Bola Ahmed Tinubu's statement during his visit to Brazil.
  • The African Exchanges Linkage Project.
  • The African Continental Free Trade Area (AfCFTA).
  • The Bank of Industry (BoI).
  • The National Bank for Economic and Social Development (BNDES).
  • The Bank of Agriculture.

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