FMDQ Streamlines Application Process To Boost N3tn Commercial Paper Market

The FMDQ Securities Exchange Limited has adopted technology to streamline the application process for Commercial Papers (CPs), with the market’s current value estimated at N3trn.

Mr Oluwaseun Afolabi, Divisional Head of Market Architecture at FMDQ, disclosed this during the 2024 Capital Market Correspondents Association of Nigeria (CAMCAN) annual workshop in Lagos. Themed “Banks’ Recapitalisation: Bridging the Gap Between Investors and Issuers in the Nigerian Capital Market.”

The workshop highlighted key developments in Nigeria’s capital market.

Afolabi noted that the CP market, which was dormant as far back as 2014, has been revitalized through the introduction of relevant frameworks that have encouraged market participation.

“Today, FMDQ has deployed technology exclusively for processing commercial paper applications. Applicants no longer need to make calls; a simple online submission ensures immediate acknowledgement, enhancing efficiency. The portal also supports post-listing compliance and other operational processes,” he stated.

The integration of the Securities & Exchange Commission’s (SEC) policies into FMDQ’s framework has further streamlined the listing process for bonds and other fixed-income instruments. Afolabi emphasized that these advancements have accelerated operational timelines across the board.

Speaking on the Central Bank of Nigeria’s (CBN) recapitalization efforts, Afolabi explained that the exercise would strengthen the banking sector and enable institutions to undertake larger funding programs.

“When banks recapitalize, they gain the capacity to execute significant funding initiatives. For example, the SEC will have confidence in their ability to raise to N200bn in funds, which benefits the overall market,” he said.

Afolabi also urged stakeholders to address information gaps in the capital market, noting that improved transparency would reduce shareholder complaints. He called on journalists to play a pivotal role in enhancing public understanding of the market.

“Journalists must take a central role in shaping public perception and awareness of developments within the capital market. Their contributions are critical in bringing all stakeholders together,” he added.

FMDQ Streamlines Application Process To Boost N3tn Commercial Paper Market is first published on The Whistler Newspaper