Stakeholders to Gain Insights Into Nigeria’s Securities Lending Landscape

By Aduragbemi Omiyale

Nigeria’s securities lending landscape has been largely underutilised, partly because most stakeholders are yet to have a full grasp of its modalities.

Securities lending is the market practice of temporarily transferring securities, for a fee, from their holder (the lender) to another party (the borrower), with the borrower agreeing to return the securities to the lender either on-demand or at the end of the agreed loan term.

This practice usually requires the borrower to collateralise the transaction with cash or other securities of a value equal to or greater than that of the lent securities, in order to protect the lender against counterparty credit risk. ​

Securities lending plays an important role in capital markets by providing liquidity, which in turn reduces the cost of trading and promotes price discovery. ​

As part of its efforts to enhance investor participation in the Nigerian capital market, boost secondary market liquidity, and facilitate savings mobilisation to drive economic growth, the Nigerian Exchange (NGX) Limited is partnering with the Securities and Exchange Commission (SEC) and the National Pension Commission (PenCom) to hold a Securities Lending Webinar.

This virtual event is slated for Wednesday, August 9, 2023, at 10 am, and it is themed Business Facilitation Act 2023 as a catalyst for deepening Securities lending in Nigeria.

Some experts have been scheduled to speak at this programme, and they include Mr Temi Popoola, the CEO of NGX; Mr Babatunde Majiyagbe, the CEO of Stanbic IBTC Nominees; Mr Abdulkadri Abass, the Director of Registration for Exchanges, Market Infrastructure, and Innovation at SEC; Mr Oguche Agudah, the CEO of PENOP; and Mr Ibrahim Kangiwa, the Head of Investment Supervision at PenCom.

Others are Mr Aigbovbioise Aig-Imoukhuede, the President of the Fund Managers Association of Nigeria; Mr Peter Omoregie, the CEO of CardinalStone Securities; Ms Ronke Ayegbejeje, the Relationship Manager at Stanbic IBTC Nominees; Ms Onome Komolafe, the Divisional Head of Business Services and Client Experience at the Central Securities Clearing System (CSCS) Plc; and Simi Ojumu, the Head of Sales at Absa Securities.

Business Post reports that at the webinar, participants will have the opportunity to gain insights into the securities lending landscape, product features, benefits for investors and intermediaries and the broader capital market.

To participate in the event supported by CSCS, Cardinalstone, Stanbic IBTC Nominees, and the PENOP, interested individuals can register via http://bit.ly/ngx-slw