The FMDQ Exchange has taken a significant step towards enhancing the efficiency of commercial paper applications by leveraging technology.
According to the Divisional Head, Market Architecture, FMDQ Securities Exchange Limited, Oluwaseun Afolabi, the exchange has implemented a digital platform for processing commercial paper applications, eliminating the need for manual intervention.
Speaking at the 2024 Capital Market Correspondents Association of Nigeria (CAMCAN) annual workshop in Lagos, Afolabi revealed that the commercial paper market, which was shut down in 2014, has been revitalized with the introduction of relevant frameworks.
He noted that the FMDQ Exchange has put in place a seamless process that eases bond listings and other fixed-income instruments, thanks to the Securities and Exchange Commission (SEC) policies.
Afolabi emphasized that the adoption of technology has fast-tracked the timing process at the FMDQ Exchange, enabling the market to benefit from the exercise.
He also called on stakeholders to address information imbalances in the capital market, stressing that information sharing would address key shareholders’ complaints.
Meanwhile, the Chairman of the Nigerian Exchange Group Plc, Dr. Umaru Kwairanga, has expressed concern over the low number of investors in the Nigerian capital market.
Speaking at the CAMCAN conference, Kwairanga noted that the current number of investors is unacceptable, given the country’s population of over 200 million.
Kwairanga attributed the low investor participation to the lack of technology adoption in the capital market.
However, he revealed that the Nigerian Exchange Group has made significant strides in addressing this challenge, further noting that the group has introduced NGX Invest, a digital platform that has facilitated over N1.26 trillion in capital-raising efforts by banks.
The Nigerian Exchange Group has also invested heavily in technology to attract younger investors, who prefer to conduct transactions digitally.
Kwairanga expressed optimism that the group’s efforts would lead to increased investor participation in the capital market.
He charged journalists covering the market to uphold the highest standards of journalism in their reporting.
Kwairanga emphasized the importance of accurate and insightful reporting in inspiring confidence among investors and stakeholders while fostering accountability and transparency.
The FMDQ Exchange’s adoption of technology for commercial paper applications is a significant development in the Nigerian capital market.
As the market continues to evolve, it is essential for stakeholders to prioritize transparency, accountability, and efficiency.
By doing so, the market can attract more investors, deepen liquidity, and contribute to the country’s economic growth.
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