Thursday, February 06, 2020, / 07:25 AM / Nifemi Taiyese for WebTV
/ Header Image Credit: The Guardian Nigeria
The Derivatives Market has the potential to create jobs, attract more capital inflows and stimulate economic activities in the country.CEO of the FMDQ Securities Exchange Mr. Bola Onadele disclosed this recently in an exclusive interview on the Channels Television Business Morning Program.
Giving an insight into the strategy and plan of the securities exchange in the year 2020, Mr. Onadele was hopeful that the revised Company and Allied Matters Act (CAMA) would be signed into law, to enable the Derivatives market function effectively.
Speaking further, he said there were plans to deepen the bond market as the size of the sovereign was about N9trn, while the non-sovereign is less than N1trn which was not good enough for a country with a population of over 2oom people.
According to him, "We should be thinking of a non-sovereign bond market underpinned by mortgages and housing credit that can deliver over N40trn in this country. We are currently working hard with stakeholders to see what they can do in that respect".
Giving a review of the year 2019, the FMDQ boss described it as a year the securities exchange fully activated its business agenda and its responsibility to the society, which are the two ways to dimension an organization.
On its FMDQ Financial Market Empowerment Program, called FMDQ Next, Onadele noted that the organization has successfully, to date, educated and empowered 415 students in primary and secondary schools, and undergraduates and fresh graduates.
He said the FMDQ remained committed to the GOLD Agenda which covers the following;
In terms of performance, Onadele was elated to report that FMDQ Securities Exchange crossed the N200trn mark in 2019 by achieving a market size of about N233trn.
He was happy to note that since its inception in 2013, the FMDQ Securities Exchange, which started as an OTC market, has incrementally met the mandate of the founding fathers and stakeholders to serve as an agent of change and play a major role in Nigeria's economic transformation.
For 2020 the MD/CEO of FMDQ said the exchange would improve its communication with the market and look into launching products that will create additional market value.
Speaking further, he said the FMDQ Group would start working with small companies in Nigeria to enable the SME sector to ensure they can access capital, to drive innovation and boost the Nigerian economy.