AFEX Commodities Exchange Limited (AFEX) has formalised its partnership with FMDQ Holdings PLC to develop innovative products aimed at deepening the Nigerian capital Market, the company said.
The partnership which recognises the importance of product innovation to market development and encouraging participation of a wider swathe of investors in the capital market, promises to deliver new initiatives to develop new markets as well as deepen the overall Nigerian capital market.
Speaking to stakeholders present at the signing ceremony, Ayodeji Balogun, Chief Executive Officer of AFEX, said that the products to be developed under the 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.
“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.”
“The partnership will further boost AFEX’s mandate of building Africa’s second commodities derivative market.
Bola Onadele, Chief Executive Officer, FMDQ Group, said that commodities exchanges all over the world have the capacity to revive economies through the mobilization of additional investment and resources for various sectors such as minerals and agriculture.
“This collaboration is aimed at strengthening the commodities exchange ecosystem in Nigeria and provides new market opportunities for the commodities traded on both exchanges”.
He explained that the major focus of FMDQ is to support the growth of the sector through commercial and market-driven propositions, adding that the partnership agreement would foster 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.
