4th March 2020, ABUJA, NIGERIA — In a signing ceremony held at the AFEX Commodities Exchange Limited (AFEX) offices in Abuja on March 4, 2020, AFEX and FMDQ Holdings PLC (“FMDQ Group” or “FMDQ”) formalised their partnership by executing a Memorandum of Understanding (MoU), solidifying their mutual interest in developing products to deepen the Nigerian capital market.
The collaboration between AFEX and FMDQ recognises the importance of product innovation to market development and encouraging participation of a wider swathe of investors in the capital market. Holding the promise for developing new markets, the partnership will help deliver new initiatives focused on deepening the Nigerian capital market.
Key on the roster of positive impact that will stem from the partnership between the two Securities and Exchange Commission (“SEC”)’s-registered Exchanges is the unlocking of additional sources of finance for the agriculture sector in Nigeria. Products developed under this new partnership will support innovative financing structures for the sector that will leverage AFEX’s established infrastructure and supply chain network and FMDQ’s extensive experience as innovators in the Nigerian financial markets.
Speaking to stakeholders present at the signing ceremony, Mr Ayodeji Balogun, Chief Executive Officer of AFEX, said ”AFEX is on a path to building Africa’s second commodities derivative market, and this partnership sets the tone for that journey. We are extremely proud to be collaborating with FMDQ, as this helps our goal of increasing our product offerings to investors. We see a clear path to product innovation that will unlock a wider range of products that are able to be traded within Nigeria’s capital markets, promoting broad-based wealth creation that’s accessible to every Nigerian.”
According to the Chief Executive Officer, FMDQ Group, Mr Bola Onadele. Koko, “We are delighted to announce this collaboration agreement between FMDQ and AFEX. As members of the SEC’s Implementation Committee on Commodities Trading Ecosystem, an area of focus for this partnership will be the Nigerian Agricultural Commodities Ecosystem. Our goal at FMDQ is to support the growth of the sector through commercial and market-driven propositions. Through the partnership, we will be introducing new products aimed at de-risking the value chain, attracting capital market funding to the sector and diversifying the existing products available to investors in this space.”
In the course of the event, both parties reiterated the need for continuous cooperation, alluding to the frontloading of relevant initiatives and campaigns to educate the market on the results of product and market development activities.