NGX boss lists benefits of effective corporate governance

Group Managing Director and CEO of Nigerian Exchange Group (NGX Group), Temi Popoola, has underscored the critical role of effective corporate governance structure in ensuring sustainable economic recovery.

Making a presentation, titled: ‘National Economic Recovery: Good Governance to the Rescue’ at the 2024 National Corporate Governance Summit, Popoola stated that strong governance structures are fundamental to economic stability and growth. He described effective corporate governance structure as a cornerstone of sustainable economic recovery, noting that it builds investor confidence, promotes capital importation and ensures market integrity.

According to him, NGX Group is at the forefront of promoting best practices in corporate governance through its subsidiaries, Nigerian Exchange Limited (NGX) and NGX Regulation Ltd (NGX RegCo), which are vital for attracting both domestic and foreign investments.

He said the Group has continued to play a pivotal role in Nigeria’s economic recovery, focusing on improving market infrastructure, ensuring transparency, leveraging technology, fostering stakeholder engagement, and enhancing overall political and economic governance.

These efforts have been instrumental in supporting sustainable economic growth and development in Nigeria. Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, reaffirmed the SEC’s commitment to maintaining rigorous regulatory oversight across financial institutions, calling for continued collaboration between regulatory bodies and market participants to uphold standards.

Executive Secretary/CEO of the Financial Reporting Council of Nigeria (FRC), Dr Rabiu Olowo, emphasised the importance of such summits in fostering dialogue and knowledge exchange, which are critical for advancing governance practices in Nigeria.

He added that an effective corporate governance structure is strategic in managing public assets and investments effectively, emphasising its crucial role in economic recovery and growth.

Meanwhile, stakeholders, intermediaries, issuers, investors and regulators have been urged to build a green climate-resilient economy and create greater prosperity for investors.

At a capacity-building workshop for capital market operators on Green Finance in Lagos, the SEC DG represented by Executive Commissioner Operations SEC, Bola Ajomale, emphasised that the commission is steadfast in its commitment to champion sustainable finance initiatives as the rules on green bonds have already facilitated a couple of sovereign issues and multiple corporate issues.

Agama said the federal government through the Debt Management Office (DMO) has led the way in Africa in this regard by issuing the first sovereign green bond in December 2017, in addition to the N15 billion issuance in June 2019 specifically to fund renewable energy, afforestation, and transportation.

According to him, the commission has also approved two green bond issues by North South Power Services Ltd and Access Bank Plc worth N8.56 billion and another N15 billion to finance various infrastructural projects in the power, water and agriculture sectors.

He said the onus lies on the stakeholders to continue to expand these issuances by locating a need and fashioning appropriate sustainable financing products suitable for the issues.

The SEC DG disclosed that the commission continues to actively support and champion efforts to deliver coordinated and coherent policy advice, capacity building and regulatory support to leverage actions across a broad spectrum of sectors to build momentum for a green economy to facilitate inclusive and environmentally sound economic transformation.

Agama said the workshop presents an opportunity for stakeholders in the capital market to enrich the discussion on green finance and more importantly, take concerted action on issues relating to climate change and sustainability.

The SEC DG said embracing green finance remains a critical approach to addressing these challenges, adding that it is crucial to involve key stakeholders in conversations that promote green finance.