Capital Markets Key to Boosting Nigeria–Brazil Trade and Investment, Says NGX Boss

The Nigerian Exchange Group (NGX) has emphasized that capital markets will be instrumental in driving trade and investment between Nigeria and Brazil. The Group Managing Director and Chief Executive Officer of NGX, Temi Popoola, made this statement during a business session held on the sidelines of President Bola Ahmed Tinubu’s state visit to Brazil. The visit saw both nations sign five Memoranda of Understanding (MoUs) to deepen bilateral relations and strengthen economic cooperation.

Popoola explained that NGX is strategically positioned as a gateway for cross-border capital flows, particularly for creating growth opportunities for small and medium-sized enterprises (SMEs). He noted that the Nigerian Exchange Limited, Africa’s second-largest stock market by transaction size, has nearly doubled its market capitalization in the past 18 months, reaching about $90 billion. This growth spans equities, fixed income, derivatives, and alternative investment instruments, signaling a strong foundation for attracting global investors.

Highlighting the evolving role of exchanges, Popoola said: “Historically, exchanges have been platforms for large corporations, but the reality is shifting. SMEs are critical to our economies, and exchanges must innovate to support their growth.” He added that NGX has introduced a Growth Board to lower entry barriers for smaller businesses, partnered with the Bank of Industry to channel financing, and expanded access to alternative funding through private markets, crowdfunding, and receivables financing.

Speaking on cross-border investment flows, Popoola underscored Nigeria’s attractiveness as a frontier market. “It is easy to invest in Nigeria. Our markets are digital, intermediaries are established, and capital flows freely,” he said. He stressed that investors who traditionally allocate funds to Brazil also view Nigeria as a compelling destination for portfolio and direct investments, especially in sectors such as agriculture, technology, and manufacturing.

Of particular importance to the capital market discussions was the signing of an MoU between Nigeria’s Bank of Agriculture and Brazil’s National Bank for Economic and Social Development. The agreement focuses on agricultural financing, joint projects, and SME-driven investments. The session brought together senior government officials and private sector leaders from both nations to explore trade opportunities and leverage digital innovation as a key driver for economic integration.

Source: Punch