Capital markets to drive Nigeria–Brazil trade ties, says NGX
The Group Managing Director/Chief Executive Officer of Nigerian Exchange Group, Temi Popoola, has said that capital markets will play a central role in driving trade and investment growth between Nigeria and Brazil.
Popoola stated this during a business session held on the sidelines of President Bola Ahmed Tinubu’s state visit to Brazil, where both countries signed five Memoranda of Understanding to strengthen bilateral relations.
He explained that NGX Group was strategically positioned as a gateway for cross-border capital flows, particularly in creating growth opportunities for small and medium-sized enterprises.
According to him, Nigerian Exchange Limited, Africa’s second-largest bourse by transaction size, has nearly doubled its market capitalisation in the last 18 months to about $90bn, covering equities, fixed income, derivatives, and alternative investment instruments.
“Historically, exchanges have been platforms for large corporations, but the reality is shifting. Today, SMEs are critical to our economies, and exchanges must innovate to support their growth,” Popoola said.
He noted that NGX had introduced a Growth Board with lower entry barriers for smaller companies, partnered with the Bank of Industry to channel funding, and expanded access to alternative financing through private markets, crowdfunding, and receivables financing.
On cross-border investment flows, the NGX boss stressed the attractiveness of Nigeria to investors.
“It is easy to invest in Nigeria. Our markets are digital, intermediaries are established, and capital flows freely. Investors who typically allocate funds to Brazil as an emerging market also view Nigeria as an attractive frontier market,” he said.
Of particular relevance to the capital market, Popoola highlighted the signing of an MoU between the Managing Director of Nigeria’s Bank of Agriculture, Ayo Sotinrin, and Brazil’s Minister for the National Bank for Economic and Social Development, Aluísio Mercadante. The agreement is expected to strengthen collaboration in agricultural financing, investments, and joint projects, particularly in SME-driven sectors.
The session, which brought together senior government officials and private sector leaders from both countries, focused on expanding trade and investment opportunities beyond large corporations to include micro, small, and medium enterprises, with digital innovation identified as a key enabler.
