NGX Group CEO, others see telecom sector driving Nigeria’s economic future

Industry leaders have noted that the telecommunications sector is a pivotal force in Nigeria’s economic growth.

They noted this at a recent town hall meeting organised by Financial Derivatives Company (FDC).

The event, themed “Telecoms Industry 2.0: The Next Investment Frontier in Nigeria,” brought together key stakeholders to discuss the industry’s critical role in shaping the future of the Nigerian capital market.

Temi Popoola, Group Managing Director and Chief Executive Officer of Nigerian Exchange Group (NGX Group), underscored the significant impact of the telecommunications industry on capital market efficiency, transparency, and financial inclusion.

“The telecommunications sector is not just about connectivity; it is a vital cog in the machinery that drives market transparency and informed decision-making,” Popoola stated. He pointed out that two of the top five most capitalized companies on NGX are telecommunications giants, illustrating the deep-seated connection between the industry and the financial market.

Popoola emphasised that the influence of telecoms extends well beyond their primary services. “Their contributions extend beyond connectivity; they facilitate the dissemination of real-time market data, which is crucial for enhancing market transparency,” he noted. He also discussed the synergistic relationship between the telecoms industry and the capital market, which fosters a robust ecosystem benefiting suppliers, partners, and investors.

The GMD/CEO stressed the importance of fostering an environment that encourages innovation, which he believes will drive further investment in infrastructure and talent development within the sector. He called for continued collaboration between the telecommunications industry and the financial markets to unlock new opportunities that would enhance both sectors.

Armstrong Takang, Managing Director/CEO of the Ministry of Finance Incorporated, represented the Minister of Finance and Coordinating Minister of the Economy at the event. He echoed Popoola’s sentiments, asserting the need for a supportive policy framework that could make the telecom industry even more attractive for investments. “With the right regulations and enabling policies, the telecommunications sector has the potential to become a cornerstone of Nigeria’s economic future,” Takang stated.

Adding to the discourse, Bolaji Balogun, CEO of Chapel Hill Denham, called for a regulatory landscape that encourages telecom companies to leverage the capital markets. He stressed the importance of increased investments in infrastructure and a greater focus on talent development to ensure the industry’s sustainable growth.

The event concluded with a consensus among stakeholders that a strategic mix of policies and enabling legislation will be vital in steering Nigeria’s telecommunications industry towards long-term sustainability and making it a true investment frontier.

Telecommunications sector has been recognised as a significant contributor to Nigeria’s economic growth since its liberalization in 2001. As the industry continues to evolve, its symbiotic relationship with the capital market and broader economy remains a focal point for policymakers and investors alike.