NGX: Power decentralisation opens opportunities for listings

The Chief Executive Officer of the Nigerian Exchange, Temi Popoola, has highlighted the decentralisation of the power sector as a significant opportunity for more power firms to list on the exchange. In an exclusive interview with CNBC Africa, Popoola discussed the efforts to increase representation of key sectors on the Nigerian Exchange. Popoola made these comments on the sidelines of Geregu Power's Management outing at the NSC, marking an important event since its listing in October last year. Popoola emphasized the importance of expanding the representation of sectors on the exchange to align more closely with the nation's economy and GDP. He noted that the power sector, in particular, was a clear gap that needed to be addressed. The listing of Geregu Power on the exchange was described as a significant milestone following years of groundwork by previous leadership. Furthermore, Popoola highlighted the positive impact of companies listing on the exchange in terms of attracting strategic investors and enhancing corporate governance. The recent announcement of a strategic investor acquiring a 5% stake in Geregu Power underscored the growing interest in companies joining the exchange and the capital markets. Popoola also underscored the importance of increased attention on the Nigerian markets to encourage more companies to consider listing and tapping into the opportunities available. He emphasized the role of the capital markets in providing a viable mechanism for companies to raise capital and engage with investors. Discussing the recent developments in the power sector, particularly the move to shift power issues from the exclusive to concurrent list, Popoola expressed optimism about the opportunities this transition could unlock. He highlighted transmission as a critical part of the power ecosystem, and resolving related issues could improve the overall functioning of the sector. Popoola also noted the potential for attracting diverse investors, both local and international, to participate in the power sector. Looking ahead, Popoola acknowledged the challenging operating environment faced by corporates in Nigeria and the broader West African region. Despite the difficulties, he commended listed companies for reporting strong financial performance and adhering to disclosure rules. He expressed confidence in the resilience of corporates to navigate the challenges and continue to engage with investors transparently. Overall, Popoola's insights shed light on the evolving landscape of the Nigerian Exchange, with a focus on the power sector's decentralisation and the opportunities it presents for companies looking to list on the exchange. The commitment to enhancing sector representation, attracting quality investors, and fostering transparency bodes well for the future of the Nigerian capital markets.