Economy
Nigeria’s Derivatives Market Has Prospect to Support Economy—NSE
By Modupe Gbadeyanka
First Vice President of the Nigerian Stock Exchange (NSE), Mr Abimbola Ogunbanjo, has expressed optimism that the expected introduction of Exchange Traded Derivatives (ETD) market in Nigeria will “eventually develop into a robust market place that can support our growth ambitions as a nation, using South Africa as an example of Africa’s first derivatives market.”
Mr Ogunbanjo, in his address on Monday at a lecture organised by the NSE in Lagos, stated that the South African derivatives market has grown rapidly in recent years to support capital inflows and help market participants to price, unbundle and transfer risk.
The NSE top shot noted that in main Europe and America, the derivatives market has grown impressively around 24 percent per year in the last decade into a sizeable and truly global market with about €457 trillion of notional amount outstanding in 2014.
The Exchange is planning to launch Nigeria’s derivatives market this year and ahead of this, it organised a training programme tagged ‘Legal & Risk Aspects Of Derivatives And Central Counterparty Clearing (CCP) Transactions,’ which took place at the Civic Centre in Lagos.
In his keynote address, the NSE First Vice Chairman agreed that the concept of derivatives remains relatively novel in the Nigerian financial market space and has only been noticeable within the Over-The-Counter (OTC) segment of the market, but maintained that the frontiers of the Nigerian financial market is expected to grow exponentially due to enhanced liquidity arising from the development of new and intricate financial instruments.
He said derivative instruments can either be good or bad depending on the user.
Mr Ogunbanjo explained that if the person using them is a business owner who wants to reduce the risk in a portfolio of stocks in order to increase the odds that his employees will enjoy a comfortable retirement, that’s a good thing.
A flow trader at a major bank could use that same derivative to hide risk in an offshore account in direct violation of the Bank’s Policy and Nigerian securities laws. It’s the intent of the person using it that determines whether a derivative is a tool for good or for evil, he added.
But according to him, “derivatives are simple tools that allow market participants to efficiently manage their risks.”
He described the derivatives market as predominantly a professional wholesale market with individuals, corporations, institutions and governments as its main participants.
“A single derivatives transaction may attract diverse levels of professional financial counterparts across the value chain. There are two competing segments in the derivatives market, being the off-exchange or over-the-counter (OTC) segment and the on-exchange segment (ETDs).
From a customer perspective in Europe, exchange trading is approximately eight times less expensive than OTC trading, hence, it is hoped that the immense opportunity for improved efficiency via the launch of ETDs in Nigeria will mirror their popularity experienced globally, he told participants at the seminar.
He said when fully operational in Nigeria, lawyers would be very busy because they would provide services to broker-dealers, banks, insurance companies, investment advisers, commodity advisers, hedge funds, private equity funds, securities and futures exchanges, clearing houses and pension fund administrators to name a few as well as any commercial enterprise that is the “end user”.
Mr Ogunbanjo assured that more training would be organised by the NSE to enhance Nigeria’s global positioning as a thought leader in the African derivatives space.
By Aduragbemi Omiyale
The pre-registration training and examination for capital market operators (CMOs) for the second quarter of 2026 has been postponed.
Business Post gathered that the new date for the exercise is now Monday, June 15, 2026.
This information was disclosed by the Securities and Exchange Commission (SEC) through a circular on Monday, June 8, 2026.
The Nigerian capital market regulator stated that this postponement has also resulted in the extension of the deadline for registration to Friday, June 12, 2026.
In the notice today, the SEC expressed its regret for the inconvenience this action may cause operators, who had prepared for the initial date of the training and examination.
“Further to the recent circular on Q2 2026 Pre-registration Training and Examination, the Securities and Exchange Commission (SEC) hereby informs all eligible applicants for the Q2 2026 Pre-registration Training and Examination that the commencement date has been postponed to Monday, June 15, 2026.
“Registration on the designated portal has also been extended to Friday, June 12, 2026. All other conditions contained in the circular remain unchanged.
“The commission regrets any inconvenience this postponement may cause and appreciates the understanding of all applicants,” the disclosure noted.
By Aduragbemi Omiyale
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, has listed additional shares on the Nigerian Exchange (NGX) Limited.
The new stocks absorbed into the stock market were 600 million units, raising the total issued and fully paid-up shares of Fidson to 3,000,000,000 ordinary shares of 50 Kobo each from 2,400,000,000 ordinary shares of 50 Kobo each.
The fresh equities came from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share.
They were issued to existing investors on the basis of one new ordinary share for every existing four ordinary shares held as of the close of business on Wednesday, November 12, 2025.
Confirming the development, the regulator in a notice said, “Trading licence holders are hereby notified that an additional 600,000,000 ordinary shares of 50 Kobo each of Fidson Healthcare Plc were on Tuesday, June 2, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing four ordinary shares held as at the close of business on Wednesday, November 12, 2025.
“With the listing of the additional 600,000,000 ordinary shares, the total issued and fully paid-up shares of Fidson Healthcare Plc have now increased from 2,400,000,000 to 3,000,000,000 ordinary shares of 50 Kobo each.”
By Modupe Gbadeyanka
This news will surely excite local contractors with verified claims of N100 million or less, as the federal government has approved their payments.
This approval for the disbursement was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
This followed a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
The beneficiaries cover contractors across multiple ministries, departments and agencies. The release of the funds is expected to enable contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
In an announcement on Monday, the Federal Ministry of Finance also said this latest batch of payments would ease liquidity pressure on small businesses and accelerate economic activity nationwide.
It was noted that the payments for verified claims of N100 million below were strategically done to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
The payments form part of a broader push to clear inherited contractor obligations, with over N700 billion verified in recent months.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the ministry said in a statement.
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