NGX proposes dollar-denominated bond, stock listings, issue warning

The Chief Executive Officer of Nigerian Exchange Ltd., Temi Popoola, has disclosed that the capital market in the country is considering a dollar-denominated bond listings.

Popoola 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. These initiatives, he told Bloomberg in a report on Wednesday, will improve the availability of foreign exchange in Nigeria and address the fluctuations in the forex market.Read more

READ ALSO:NGX: Market cap up by 1.54%, Sterling Financial, Nigerian Breweries lead gainers

“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,” Popoola said.

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, Popoola gave 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.”

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now