February 16, 2023

Stock Exchange boss recommends options for improved govt revenue, GDP

Stock Exchange boss recommends options for improved govt revenue, GDP

By Peter Egwuatu

Ahead of the forthcoming regime change following a general election next week, Temi Popoola, CEO, Nigerian Exchange Limited (NGX), has recommended that public policy should be directed at using the capital market to boost revenue and enhance  Gross Domestic Product, GDP, required to increase wealth and reduce poverty in Nigeria.

In a recent interview with Vanguard during a round table discussion,    Popoola specifically advocated for more government incentives to motivate companies to list on NGX as a means of boosting tax revenue to GDP ratio, which currently stands at 6%.

He said, “The reality is that because listed firms must adhere to regulatory requirements and corporate governance standards in order to maintain their listing on the Exchange, they are typically more consistent and reliable with their tax compliance. Consequently, the more companies we can get to list, the more revenue the government can make.”

The CEO who spoke extensively on what the institution’s top priorities are for the year noted that the Exchange is looking to address some age-long issues bordering on new listings which will, in turn, deepen trade.

Recall that in December 2022, the Securities Exchange Commission (SEC) approved NGX’s Technology Board rules which permit it to list fintech start-ups and tech companies on the Exchange.

In order to push its digital transformation agenda, NGX had gone one step further and established an advisory panel on digital technology products.

The Panel would give the Exchange a platform to communicate with the capital market community and the fintech ecosystem to enhance and increase NGX’s digital product offerings.