Popoola: Collaboration with SEC to drive new changes

The Group CEO of the Nigerian Exchange Limited (NGX), Temi Popoola, recently highlighted the importance of collaboration with the Securities and Exchange Commission (SEC) to drive new changes in the capital market. Popoola, speaking with CNBC Africa during the NGX Annual General Meeting, expressed his belief that working closely with the SEC would be key to achieving a robust and proactive approach to market growth. Popoola reflected on the past year, emphasizing significant contributions to the NGX's performance. He noted the strong activity generated by bank offerings in the country, income driven by technology, and increased trading revenues. Additionally, investments made in associate companies both within and outside Nigeria played a role in the overall strong bottom line for the NGX. The company saw nearly 100% growth in dividends year-on-year, indicating a sustainable business model moving forward. When asked about capital appreciation in the market, Popoola acknowledged the global context within which Nigeria operates. He described the year as starting off relatively flat, but highlighted previous years of substantial growth in the market. Popoola noted the varied performance of individual stocks, with banks showing strong capital appreciation. He also pointed out the record dividend payouts seen during the year, signaling a positive trend in market performance. Addressing the performance of subsidiaries, Popoola affirmed that the NGX had already begun to reap the benefits of demutualization. He mentioned improvements in financial returns, regulatory and governance practices, business diversification, and stakeholder engagement as outcomes of the demutualization process. Popoola emphasized that these benefits had been evident since the initial stages of the demutualization. During the AGM, Popoola discussed plans to expand listings and collaborate with the SEC. Although he did not delve into specifics due to ongoing discussions, he underscored the SEC's leadership in driving market changes. Popoola highlighted the need to reassess market rules, many of which are decades old, in order to adapt to current market dynamics. He referred to the landmark approval of the Investments and Securities Act 2025 by the SEC as an example of proactive regulatory action. In conclusion, Popoola emphasized the goal of creating a healthy market environment that fosters increased listings and transactions. He emphasized the importance of working with the SEC, NGX Regulation, and other stakeholders to review and update market rules, ensuring a dynamic and responsive regulatory framework for the Nigerian capital market.