Timi Popoola, CEO NGX Ltd

 

The Chief Executive Officer of Nigerian Exchange Ltd., Temi Popoola, has disclosed that the nation’s capital market was considering a dollar-denominated bond listings.

Popoola who disclosed to Bloomberg said the dollar-denominated bond listings and dollar-denominated stock listings have been proposed to the Nigerian government and the proposal has received positive interest.

While the timeframe for the implementation was not disclosed, the initiatives will target companies generating revenue in foreign currency and those operating at the free trade zones.

Also, the capital market authority is proposing companies pay dividends in dollar. This, he believes, will improve the availability of foreign exchange in Nigeria and address the fluctuations in the forex market.

According to Popoola, “Our primary objective is to enable these companies to issue bonds denominated in dollars and eventually offer equity in dollars as well. It could potentially address the challenges posed by fluctuations in foreign currency”.

He warned that the foreign exchange issue in the country could drive companies to listing abroad instead of Nigeria, “If the target companies cannot access dollars within our market, many of them may opt to list abroad,” the NGX chief affirmed.

Meanwhile, he gave the assurance on the possibility of the initiatives becoming a reality, stating that the stance of President Bola Tinubu in solving the forex market challenges give confidence.

“Given the proactive stance of the current administration, it is reasonable to anticipate that these objectives can be achieved.”