Industry leaders advocate telecom-capital market collaboration

Industry leaders have canvassed for a stronger partnership between Nigeria’s telecommunications sector and the capital market.

They noted that such a synergy could unlock new investment opportunities and propel the country’s economic growth.

This assertion was made at a town hall event organised by Financial Derivatives Company in Lagos recently, which brought together stakeholders to discuss the future of the telecommunications industry and its impact on the Nigerian economy.

The event, themed “Telecoms Industry 2.0: The Next Investment Frontier in Nigeria”, held in Lagos, brought together stakeholders to discuss the future of the telecommunications industry and its impact on the Nigerian economy.

In his keynote address, the Group Managing Director and Chief Executive Officer of Nigerian Exchange Group, Temi Popoola, highlighted the telecom sector’s significant contributions to capital market efficiency, transparency, and financial inclusion.

According to Popoola, the telecommunications industry is not just about providing connectivity but is also a vital component in the machinery that drives market transparency and informed decision-making.

“The telecommunications sector plays a crucial role in enhancing market efficiency. Two of the top five most capitalised companies on the Nigerian Exchange are telecom giants, which underscores the deep connection between the industry and the financial market.

He further explained that the influence of telecoms extends well beyond their primary services, stating, “Their contributions to the capital market include facilitating the dissemination of real-time market data, which is essential for improving transparency and making informed investment decisions.”

He also called for a collaborative approach between the telecommunications industry and the financial markets to unlock new opportunities that would drive further investment in infrastructure and talent development within the sector.

According to Popoola, fostering an environment that encourages innovation is key to ensuring the sustainable growth of the telecom industry and its continued impact on the Nigerian economy.

Representing the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, the Managing Director/CEO of the Ministry of Finance, Armstrong Takang, Incorporated, stressed the need for a supportive policy framework that could make the telecom industry more attractive for investments.

“With the right regulations and enabling policies, the telecommunications sector has the potential to become a cornerstone of Nigeria’s economic future,” he stated.

He further noted that a strategic mix of policies and legislation would be vital in steering the telecommunications industry towards long-term sustainability.

Also, the CEO of Chapel Hill Denham, Bolaji Balogun, stressed the importance of a regulatory landscape that encourages telecom companies to leverage the capital markets.

He advocated for increased investments in infrastructure and a greater focus on talent development to ensure the industry’s sustainable growth.

“The telecom industry must continue to innovate and invest in the necessary infrastructure to support its growth. At the same time, we must not overlook the importance of developing human capital to drive this innovation,” Balogun remarked.