NiCl2(PPh3)(IPr) catalyzes cross-coupling reactions of 2-methylsulfaylbenzofurans with alkyl Orignard reagents. Other nickel complexes such as NiCl2(dppe) failed to catalyze the same reaction. The alkylation is applicable to the synthesis of a couple of protein tyrosine phosphatase inhibitors, 3-(4-biphenylyl)-2-alkylbenzofurans.