Data governance gaps can make capital costlier for African firms: NGX

The Nigerian Exchange Group (NGX Group) has warned that weaknesses in enterprise data governance, data privacy, and digital risk controls are increasingly driving up the cost of raising capital for African companies.

Speaking at the 7th CIO and C-Suite Conference and Awards Africa in Lagos, the Group Managing Director and Chief Executive Officer of NGX Group, Temi Popoola (represented by Ms. Jumoke Olaniyan, Head of Business Development), told delegates that institutional investors now view data governance maturity as a core determinant of risk pricing.

Popoola observed that in modern capital markets, data integrity, regulatory compliance, and resilience against cyber intrusions are scrutinized on equal footing with audited balance sheets. Companies with ambiguous data stewardship protocols or inadequate security assurances are frequently penalized with higher risk premiums, making both debt financing and equity valuations more expensive.

"Capital gravitates toward certainty, transparency, and trust," the NGX representative stated. "When organizations invest in auditable data architectures, clear data lineage, and rigorous compliance, they de-risk their business profile and lower their cost of funding on domestic and global exchanges."

The presentation challenged Chief Information Officers (CIOs) and Chief Risk Officers (CROs) across Africa to champion board-level data governance committees, align their operations with international data protection protocols, and position digital transparency as a direct competitive advantage.