NGX Group Calls for Stronger Capital Market Integration into Monetary Policy Framework

The Nigerian Exchange Group (NGX Group) has called for a stronger integration of the capital market into Nigeria’s monetary policy framework, stressing that the country’s economic stability increasingly depends on how well financial markets are structured and connected to policy decisions. The appeal highlights growing concerns about the role of capital markets in shaping macroeconomic outcomes.

Speaking at a workshop session organized by the Central Bank of Nigeria’s Monetary Policy Committee (MPC), themed “Structure and Behaviour of Nigeria’s Equity and Government Debt Markets: Implications for Monetary Policy Effectiveness,” NGX Group’s Group Managing Director/CEO, Temi Popoola, emphasized the need to view capital market development as a core economic priority rather than a secondary financial issue.

Popoola, who was represented by NGX Group’s Group Chief Strategy Officer, Jumoke Olaniyan, explained that monetary policy decisions do not operate in isolation. According to him, they pass through layers of market systems before reaching businesses and households, meaning that the strength and efficiency of those systems directly influence how effective policy measures turn out to be in reality.

He further noted that weaknesses in market structure—such as limited liquidity, fragmentation, or inefficiencies—can weaken even well-designed monetary policies. In his view, improving the depth and coherence of Nigeria’s equity and government debt markets would significantly enhance how policy decisions translate into real economic impact.

The NGX Group therefore urged policymakers to treat capital market development as a macroeconomic necessity, arguing that a more integrated financial ecosystem would improve policy transmission, boost investor confidence, and support long-term economic growth in Nigeria.

source: Vanguard