BY NGOZI ONYEAKUSI

The year 2023 presented numerous macroeconomic challenges, both globally and domestically. Factors such as heightened inflation, changes in monetary policies, and exchange rate volatility created a difficult economic environment. Despite these hurdles, FMDQ Group PLC navigated these complexities successfully, reinforcing its commitment to stakeholder value and the advancement of Nigeria’s financial markets. On Friday, October 25, 2024, FMDQ Group held its 12th Annual General Meeting (AGM) to transact its ordinary and special business and receive relevant approvals from its shareholders.

The AGM was chaired by Dr. Jibril Aku, Group Chairman, FMDQ Group, and as part of the ordinary business, he presented the Audited Financial Statements for the year ended December 31, 2023, to shareholders, together with the Reports of the Directors and Auditors. Dr. Jibril Aku commended the Group’s performance despite the aforementioned challenges, noting that FMDQ Group continued to execute its Strategy during the year under review  Speaking further, he highlighted that FMDQ Group, along with its subsidiaries – FMDQ Securities Exchange Limited (“FMDQ Exchange”), FMDQ Clear Limited (“FMDQ Clear”), FMDQ Depository Limited (“FMDQ Depository”), and FMDQ Private Markets Limited (“FMDQ Private Markets”) – remained dedicated to promoting innovative solutions and delivering efficient services across the financial and capital markets value chain.

Commenting on the Group’s financial performance, the Chairman stated, “Amid the turbulence experienced by global and domestic economies in 2023, FMDQ Group recorded an impressive financial performance, with revenue rising by 49.21% from ₦22.98 billion in 2022 to ₦34.29 billion in 2023. Overall market activity in the securities admission business of FMDQ Exchange’s market reported a 70.19% whopping increase, from one hundred and sixty-one (161) securities in 2022, with a total value of ₦1.70 trillion, to two hundred and seventy-four (274) securities, with a total value of ₦2.49 trillion in 2023. FMDQ Group achieved key milestones in 2023, including the successful launch of the Exchange-Traded Derivatives (ETD) market in July 2023, with two (2) pioneer products – the FGN Bond Futures and Naira-Settled Exchange-Traded FX Futures – which are traded and cleared on world-class FMDQ ETD systems, the FMDQ Q-ex Trading System and FMDQ Q-ex Clearing System, respectively. FMDQ Clear also activated its Central Counterparty (CCP) services for the ETD market launched during the year, with its three (3) pioneer General Clearing Members – Access Bank PLC, Stanbic IBTC Bank Limited, and Zenith Bank PLC. Additionally, Approvals-in-Principle were granted to four (4) Deposit Money Banks in the course of the year. FMDQ Depository was not left behind as it deployed its world-class Central Securities Depository system – Q-ex Depository.  Additionally, the franchise expanded its footprint by lodging one hundred and eighty-two (182) securities, valued at ₦1.25 trillion, an impressive 54.24% increase from the one hundred and eighteen (118) securities lodgements valued at ₦967.70 billion recorded in 2022. FMDQ Private Markets witnessed a 29.00% decrease in the number of Private Companies’ Securities noted – a total of ten (10) securities were noted in 2023, compared to fourteen (14) noted in the previous year of 2022. However, the cumulative value of noted securities as of December 2023 was ₦780.96 billion, surpassing the ₦345.16 billion noted by the end of December 2022”.

 

Speaking on the outlook for 2024 for FMDQ Group and its subsidiaries, the Chief Executive Officer of FMDQ Group, Mr. Bola Onadele. Koko, stated “Building on the successful activation of the FMDQ ETD Market in 2023, FMDQ Exchange will expand its product offerings and prioritise the activation of the Bilateral Repurchase Agreement (Repo) market with collateral management service. Beyond ensuring efficient domestic clearing and CCP services, FMDQ Clear will continue to strategically position itself for recognition and relevance as a leading CCP on the global stage. FMDQ Depository will continue to expand its services to include new products and asset classes positioning itself to deliver more technology-based value-driven solutions and efficient service delivery to its stakeholders. FMDQ Private Markets will continue ramping up efforts to activate its structured solutions business, with a focus on deploying Artis DealRoom, a cutting-edge digital platform designed to facilitate activities in the supply chain market. In line with its Principal Investment Framework, FMDQ Group will continue to position itself as a fully integrated financial market infrastructure (FMI) group, by consolidating and developing its capital market businesses, and seeking investments with strategic and financial benefits, while making significant efforts to progress its capital raising agenda to further enhance the Group’s sustainability and resilience’’.

 

The Group’s achievements in 2023 reflect the dedication of its Board, Management, and Staff, along with the unwavering support and collaboration of its stakeholders. As FMDQ Group embarks on the next decade, it is optimistic about its ability to harness opportunities and remains committed to advancing Nigeria’s financial markets, while maintaining its position as a critical FMI group. Guided by its dream in motion, “Born Local…Going Global”, FMDQ Group will continue to face each challenge with unwavering determination, courage, and diligence, striving to uphold the GOLD standard set for the markets it serves.

 

FMDQ Group is Africa’s first vertically integrated FMI group, strategically positioned to provide registration, listing, quotation, and noting services; integrated trading, clearing & central counterparty, settlement, and risk management for financial market transactions; depository of securities, as well as data and information services, across the debt capital, foreign exchange, derivatives, and equity markets, through its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear, FMDQ Depository, and FMDQ Private Markets. As a sustainability-focused FMI group, FMDQ Group, through FMDQ Exchange, operates Africa’s premier Green Exchange – FMDQ Green Exchange – positioned to lead the transition towards a sustainable future