Nigeria will launch the derivatives market in 2014 to increase the number of tradable products.
Aliko Dangote, the President of the Nigerian Stock Exchange, NSE, said Nigeria will soon be the gateway to African capital markets.
Mr. Dangote, Africa’s richest man, made the forecast at the 52nd Annual General Meeting, AGM, of the NSE on Friday in Lagos. He said that Nigeria will launch the derivatives market in 2014 to increase the number of tradable products.
According to Mr. Dangote, the NSE has invested N40 million in the Nigerian Association of Securities Dealers Ltd, NASD, to boost the market. He said that the investment was made during the financial year ended December 31, 2012.
NASD is a formal Over-the-Counter, OTC, platform for the trading of unlisted equities, bonds and money market instruments.
Mr. Dangote said that the NSE acquired 6.86 per cent through private placement offer to diversify its revenue stream, adding that the Securities and Exchange Commission (SEC) in December 2012 approved the NASD application to establish the OTC platform.
He also said that the sum of N50 million was invested in FMDQ OTC Plc, a newly established firm registered to carry out the business of securities dealings.
Besides, he said that the firm was promoting and overseeing OTC market platforms for trading securities.
“We made a strategic decision to invest in FMDQ to broaden our market reach, diversify revenue stream and to remain at the forefront of an evolving globally competitive financial market,” Mr. Dangote said.
He said that the exchange owned 7.79 per cent of FMDQ.