The Nigerian Exchange Limited (NGX) has called on the Federal Government to adjust regulations to allow the Exchange to admit companies that earn and pay dividends in dollars which it believes will help in solving the country’s foreign exchange crunch.
The Exchange also wants the FG to prioritise listed companies when giving foreign exchange and in their procurement bidding.
The Chief Executive Officer of NGX, Temi Popoola made the call at the MTN Capital Market Day.
Popoola said the NGX has begun collaboration with FG to use the capital market to fix some of the forex challenges facing the country.
He said the execution of dollar-denominated transactions on NGX can address forex illiquidity.
The CEO said, “There are companies that would like to list on our Exchange, but they earn in dollars, their revenue to their bottom-line is in dollars.
“There are also listed companies that would like to pay their dividends in dollars. However, the current regulation does not allow that.
“We are working with regulators and policymakers to try to address that because this would create a lot more benefit to the government, which is looking for FX resolutions to its challenges.
“We believe this will also unlock the dollars people have saved in domiciliary accounts to be put into useful work in the capital market and economy.”
Recall that the Popoola had in August 2023 said that the NGX was working with the Securities and Exchange Commission (SEC) and other market stakeholders to create a revised listing regulation for companies within the free trade zones.
He had said the companies that were targeted are those that have their topline revenue to bottom-line in dollars.
NGX Seeks FG’s Approval To List Dollar-Denominated Companies is first published on The Whistler Newspaper