NGX Group Explores Ways To Deepen Nigeria-Brazil Investment Ties

The group managing director/chief executive officer of Nigerian Exchange Group (NGX Group) Plc, Temi Popoola, has emphasised the critical role of capital markets in strengthening Nigeria–Brazil trade and investment ties, particularly by creating growth opportunities for small and medium-sized enterprises (SMEs).

Speaking during a high-level business session on the sidelines of President Bola Tinubu’s state visit to Brazil, where five Memoranda of Understanding (MoUs) were signed between both countries, Popoola positioned NGX Group as a gateway for cross-border capital flows and a catalyst for deepening bilateral economic collaboration.

He noted that  the Nigerian Exchange Limited (NGX), Africa’s second-largest bourse by transaction size, had nearly doubled its market capitalisation in the past 18 months to about $90 billion, covering equities, fixed income, derivatives, and alternative investment instruments.

“Historically, exchanges have been platforms for large corporations, but the reality is shifting. Today, SMEs are critical to our economies, and exchanges must innovate to support their growth,” Popoola stated.

He explained that NGX had introduced a Growth Board with lower entry barriers for smaller companies, partnered with the Bank of Industry (BOI) to channel funding, and expanded access to alternative financing options through private markets, crowdfunding, and receivables financing.

On cross-border flows, Popoola stressed the ease of investing in Nigeria, saying, “It is easy to invest in Nigeria. Our markets are digital, intermediaries are established, and capital flows freely. Investors who typically allocate funds to Brazil as an emerging market also view Nigeria as an attractive frontier market.”

He further highlighted NGX Group’s leadership in advancing regional integration through initiatives such as the African Exchanges Linkage Project and its recent investment in the Ethiopia Stock Exchange, aligned with the objectives of the African Continental Free Trade Area (AfCFTA).

Of particular relevance to NGX Group was the signing of an MoU between the managing director of Nigeria’s Bank of Agriculture, Mr. Ayo Sotinrin, and Brazil’s Minister for the National Bank for Economic and Social Development (BNDES), Mr. Aluísio Mercadante. The agreement aims to strengthen collaboration in agricultural financing, investments, and joint projects, an initiative expected to channel more capital into agriculture and other SME-driven sectors.

The business session, which gathered senior government officials and private sector leaders from both countries, explored ways to expand bilateral relations beyond large corporations to include micro, small, and medium enterprises (MSMEs), with digital innovation identified as a critical enabler.

President Tinubu’s two-day visit to Brazil, accompanied by a delegation of ministers and business leaders, seeks to deepen trade, investment, and economic cooperation between Africa’s largest economy and Latin America’s biggest market.