The Nigerian Exchange Group (NGX) has declared that capital markets will serve as a powerful catalyst in driving trade and investment growth between Nigeria and Brazil.
Temi Popoola, Group Managing Director and Chief Executive Officer of NGX, spoke at a high-level business session on the sidelines of President Bola Ahmed Tinubu’s state visit to Brazil, where both nations signed five strategic Memoranda of Understanding (MoUs) to strengthen bilateral economic relations.
According to Popoola, the NGX is strategically positioned to act as a gateway for cross-border capital flows, particularly for small and medium-sized enterprises (SMEs), which he identified as critical engines for economic expansion.
“Historically, exchanges have been platforms for large corporations, but the reality is shifting. Today, SMEs are vital to our economies, and exchanges must innovate to support their growth,” he said.
NGX has responded to this imperative by introducing a Growth Board designed with lower entry barriers to attract smaller companies.
This initiative is complemented by partnerships with institutions such as the Bank of Industry, providing targeted financing solutions, and expanding access to alternative funding mechanisms, including private markets, crowdfunding, and receivables financing.
These measures are aimed at enabling smaller enterprises to participate in Nigeria’s capital market ecosystem while attracting international investment.
Popoola highlighted Nigeria’s investment appeal, noting that “our markets are digital, intermediaries are well-established, and capital flows freely. Investors who typically allocate funds to Brazil as an emerging market also view Nigeria as a highly attractive frontier market.”
This perspective underscores the growing relevance of Nigerian capital markets in global trade corridors, particularly within Latin America and Africa.
A key development reinforcing bilateral collaboration is the recently signed MoU between Nigeria’s Bank of Agriculture, led by Managing Director Ayo Sotinrin, and Brazil’s National Bank for Economic and Social Development, represented by Minister Aluísio Mercadante.
This agreement aims to enhance agricultural financing, facilitate joint investment projects, and support SME-driven sectors, particularly in agri-business, which is critical to both nations’ economic diversification strategies.
The business session convened senior government officials and private sector leaders from Nigeria and Brazil to explore trade and investment opportunities beyond large-scale corporations, focusing on SMEs as vital participants in cross-border commerce.
Digital innovation and fintech integration were highlighted as key enablers for simplifying cross-border transactions, enhancing transparency, and ensuring efficiency in investment flows.
NGX’s recent growth trajectory demonstrates its capability to support this expanding market.
The exchange, Africa’s second-largest by transaction size, has nearly doubled its market capitalization in the last 18 months, reaching approximately $90 billion.
Its diversified product offerings, spanning equities, fixed income, derivatives, and alternative investment instruments, position Nigeria as a competitive financial hub within Africa.
Temi Popoola emphasized that NGX is committed to fostering investor confidence, bridging financing gaps for SMEs, and enhancing Nigeria’s integration into the global economy.
“Capital markets are no longer just venues for large corporations; they are instruments for inclusive economic growth. Our mission is to empower enterprises of all sizes to thrive locally and expand globally,” he stated.
The strategic partnership and policy alignment highlighted during the state visit signal a new era for Nigeria–Brazil economic relations.
By leveraging the capital markets, SMEs will gain access to international financing, advanced investment platforms, and collaborative opportunities across sectors such as agriculture, manufacturing, technology, and renewable energy.
In conclusion, the Nigerian Exchange Group’s initiatives and collaborative efforts with Brazil present a roadmap for unlocking the full potential of Nigeria’s capital markets.
With supportive government policies, innovative financing structures, and proactive engagement with SMEs, Nigeria is poised to strengthen its economic footprint globally, particularly in the Latin American market, while fostering sustainable trade growth and investment diversification.
