Popoola, Others See Telecom Sector as Key Driver of Nigeria’s Economic Future

By Aduragbemi Omiyale

The chief executive of the Nigerian Exchange (NGX) Group Plc, Mr Temi Popoola, has joined others to underscore the importance of the telecommunications industry to the country’s economic growth.

Speaking at an event organised by Financial Derivatives Company (FDC) themed Telecoms Industry 2.0: The Next Investment Frontier in Nigeria, said the sector has an impact on capital market efficiency, transparency, and financial inclusion.

He informed the audience that two of the top five most capitalised companies on the domestic stock exchange are telecommunications giants, illustrating the deep-seated connection between the industry and the financial market.

“The telecommunications sector is not just about connectivity; it is a vital cog in the machinery that drives market transparency and informed decision-making,” he said.

At the programme which brought together key stakeholders to discuss the industry’s critical role in shaping the future of the Nigerian capital market, Mr Popoola emphasised that the influence of telecoms extends well beyond their primary services.

“Their contributions extend beyond connectivity; they facilitate the dissemination of real-time market data, which is crucial for enhancing market transparency,” he noted, stating the synergistic relationship between the telecoms industry and the capital market, which fosters a robust ecosystem benefiting suppliers, partners, and investors.

The NGX Group boss stressed the importance of fostering an environment that encourages innovation, which he believes will drive further investment in infrastructure and talent development within the sector.

He called for continued collaboration between the telecommunications industry and the financial markets to unlock new opportunities that would enhance both sectors.

Also speaking at the summit, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, who was represented by the chief executive of the Ministry of Finance Incorporated (MoFI), Mr Armstrong Takang, asserted the need for a supportive policy framework that could make the telecom industry even 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,” the Minister said.

On his part, the chief executive of Chapel Hill Denham, Mr Bolaji Balogun, called for a regulatory landscape that encourages telecom companies to leverage the capital markets.

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

The event concluded with a consensus among stakeholders that a strategic mix of policies and enabling legislation will be vital in steering Nigeria’s telecommunications industry towards long-term sustainability and making it a true investment frontier.

The telecommunications sector has been recognized as a significant contributor to Nigeria’s economic growth since its liberalization in 2001.

As the industry continues to evolve, its symbiotic relationship with the capital market and the broader economy remains a focal point for policymakers and investors alike.