At a recent town hall event organised by Financial Derivatives Company (FDC), themed ‘Telecoms Industry 2.0: The Next Investment Frontier in Nigeria,’ which brought together key stakeholders to discuss the industry’s critical role in shaping the future of the Nigerian capital market, Group Managing Director and Chief Executive Officer of Nigerian Exchange Group (NGX Group), Temi Popoola underscored the significant impact of the telecommunications industry on capital market, in terms of 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 capitalised 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 also pointed out 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.
Representative of the Minister of Finance and Coordinating Minister of the Economy at the event, Dr. Armstrong Takang also stressed the need for a supportive policy framework that could make the telecom industry even more attractive for investments.
Takang, who is the Managing Director/CEO of the Ministry of Finance Incorporated said:”With the right regulations and enabling policies, the telecommunications sector has the potential to become a cornerstone of Nigeria’s economic future,” he stated.
In addition, the CEO of Chapel Hill Denham, Bolaji Balogun, 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 liberalisation 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.
