Popoola Calls for Capital Market Integration in CBN Policy

Temi Popoola, the Group Managing Director and Chief Executive Officer of the Nigerian Exchange Group (NGX), advocated for stronger integration of capital market development into the Central Bank of Nigeria's (CBN) monetary policy framework during a recent workshop. He argued that the effectiveness of monetary policy increasingly relies on the depth and liquidity of Nigeria's financial market.

Popoola noted that the current monetary policy rate (MPR) of 26.50% contrasts sharply with the 10-year sovereign yield of 14.95%, indicating a need for long-term reforms. He highlighted that the equity market capitalization has risen to ₦159.73 trillion, while the fixed income market capitalization stands at ₦55.82 trillion.

Despite elevated interest rates, the Nigerian Exchange's All-Share Index recorded a 60.13% year-to-date return, reflecting growing investor confidence. However, market activity remains concentrated in a few sectors, limiting broader wealth effects.

Popoola called for a cleaner benchmark yield curve and deeper secondary market liquidity to enhance the transmission of monetary policy signals.