The Nigerian Exchange Limited (NGX) has urged the Federal Government and the Central Bank of Nigeria to give priority to listed corporates in their procurement processes and access to foreign exchange.

Temi Popoola, the Chief Executive Officer of NGX, emphasized that such a strategy could incentivize more companies to list on the Exchange and address the prevailing foreign exchange challenges in the economy.

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Speaking at the recent MTN Capital Markets Day, Popoola expressed optimism about President Bola Tinubu’s administration and its “renewed hope agenda.”

He sees this as an opportunity to collaborate with market stakeholders, including regulators, to tackle the challenges faced by the government and listed corporates.

Popoola emphasized the importance of intentional advocacy, stating, “The singular biggest thing that can be done to change the face of the capital market is not investment bankers wearing suits and knocking on the doors of companies for the next listing but really intentional advocacy.”

He highlighted the dilemma faced by companies that earn revenue in dollars but are restricted by current regulations, preventing them from paying dividends in dollars.

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The NGX is working with regulators and policymakers to address this issue, believing it will benefit the government’s search for FX solutions and unlock dollars saved in domiciliary accounts for use in the capital market and the broader economy.

Popoola revealed ongoing discussions with the Federal Government to attract listings through supportive legislation.

He argued that increased listings would enhance government revenue, citing the transparency, higher tax contributions, and improved governance demonstrated by listed companies.

Popoola also underscored the historical role of government support in facilitating the presence of many companies currently listed on the Exchange.

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Addressing the recent downgrade of Nigeria from a frontier market to unclassified, Popoola downplayed the short-term impact, noting that the share of foreign investors in the market is relatively small.

He suggested that the real impact may not be as pronounced as headlines suggest, as much of the capital might have already left the market.