Leading figures in the business world have advocated for a more robust collaboration between the Nigerian telecommunications industry and the capital market. They highlighted the potential for this collaboration to create fresh avenues for Investment and drive the growth of the nation’s economy. A statement regarding the future of the telecommunications industry in the country was issued during a recent town hall event in Lagos organised by Financial Derivatives Company. The event, themed “Telecoms Industry 2.0: The Next Investment Frontier in Nigeria”, gathered stakeholders to examine how the industry will shape the national Economy in the future.
During his speech, Temi Popoola, the Group Managing Director and Chief Executive Officer of Nigerian Exchange Group, emphasised the network industry’s valuable impact on enhancing Capital Market efficiency, transparency, and financial accessibility. Popoola asserts that the telecommunications sector plays a pivotal role in promoting market transparency and enabling individuals to make well-informed decisions, alongside its primary function of delivering connectivity. Telecom giants dominate the Nigerian Exchange, highlighting the telecommunications sector’s significant impact on market efficiency. The industry’s influence is undeniable, with two of the top five most valuable companies being telecom companies.
Telecom companies impact various industries beyond their core services.
He elaborated on how network companies significantly impact various industries besides their core services. He mentioned that they play a crucial role in the financial market by enabling the rapid distribution of up-to-date market information, which is vital for enhancing transparency and enabling well-informed investment choices. He urged the industry and financial markets to collaborate to uncover fresh possibilities for increased investment in Infrastructure and talent development. As Popoola argues, encouraging Innovation is crucial for the sustained growth of the country’s networking sector and its lasting influence on the economy.
In an address on behalf of the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, Armstrong Takang, the Managing Director/CEO of the Ministry of Finance, Armstrong Takang Incorporated, emphasised the necessity of implementing a favourable policy structure to enhance the appeal of the sector for potential investors. He emphasised the importance of implementing effective regulations and supportive policies to use the network sector’s capacity to drive the nation’s Economic Growth in the years to come. He emphasised the importance of implementing various strategies and laws to ensure the industry’s long-term sustainability.
The ties will draw more investment and sustain the sector’s flexibility.
Bolaji Balogun, the Chief Executive Officer of Chapel Hill Denham, emphasised the significance of a regulatory environment that promotes network companies’ use of capital markets. He pushed for more funding to improve infrastructure and an increased emphasis on developing skills to secure the industry’s long-term prosperity. Balogun emphasised the importance of ongoing innovation and investment in the industry’s infrastructure to sustain its growth. Also, he stressed the significance of nurturing human talent as a key driver behind this innovation.
Furthermore, the town hall event once again underscored the vital role that strategic partnerships and supportive policies play in sustaining the prosperity of the network sector. Industry leaders emphasised the necessity of adapting regulatory frameworks to address the industry’s evolving needs, ensuring its continued growth and relevance. This proactive approach is expected to attract additional investment and maintain the sector’s flexibility, enabling it to drive economic growth across various sectors. The alignment of policies with industry demands is crucial in securing long-term success and resilience for the sector.
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However, stakeholders at the event concluded that the industry needs effective policies and supportive laws to ensure its lasting success and maintain its status as a prime investment opportunity. The industry has played a crucial role in the country’s Economic Development since it was opened to competition in 2001. This sector is constantly changing and adapting to new challenges. The industry’s potential for growth in the coming years is closely tied to its relationship with the capital market and the broader economy. This connection is a crucial focus for policymakers and investors, guaranteeing that the industry’s opportunities will be maximised.