By Chinwendu Obienyi
Nigeria’s capital markets are bracing for a seismic shift as FMDQ Group Plc, the country’s dominant fixed income securities exchange, recently confirmed plans to launch its equities market, a move that will put it in direct competition with the Nigerian Exchange Limited (NGX), which has held an uncontested grip on equities trading for decades.
The plan, announced at the Group’s 13th Annual General Meeting (AGM) in Lagos, marks FMDQ’s boldest diversification yet, positioning it to challenge the NGX’s long-standing monopoly in a segment where previous competitors have failed to survive.
For example, the Abuja Stock Exchange, launched in 2001, was shut down shortly after by the government.
Outgoing Chief Executive Officer, Bola Onadele, said the Group’s priority in the coming months will be the activation of the FMDQ Equity Market alongside the introduction of an Unsponsored Depositary Receipts Market.
“We are committed to expanding our offerings and deepening Nigeria’s capital markets,” Onadele said.
The group also plans to activate the repurchase agreement market for short-term funding, integrate equity market depository services, and spin off the FMDQ Academy into a standalone entity to strengthen training and capacity building.
Similarly, in the private markets segment, the Group will roll out the ARTIS DealRoom, a digital platform to connect vendors with institutional investors for more efficient supply chain deal-making.
The development comes at a time when the NGX is enjoying unprecedented momentum, with its market capitalization approaching the N100 trillion mark so far, buoyed by strong investor activity and new listings. While NGX earned N16.8 billion in revenue in 2024, FMDQ generated N34.29 billion, driven by its commanding position in fixed income trading.
Although the NGX also operates a fixed income segment, it lags far behind FMDQ in market capitalization. FMDQ’s entry into equities could therefore alter competitive dynamics, bringing new technology, products, and investor options into a space that has seen limited disruption.
With the equities market launch imminent, some experts agree that a new era of competition is set to unfold, one that could redefine Nigeria’s capital markets and end NGX’s long reign as the sole equities trading venue while some expressed caution.
Speaking on the development, market analysts say the move could inject long-needed competition into Nigeria’s equities space. Former Economist at the United Bank for Africa, Abiola Rasaq said, FMDQ’s entry has the potential to shake up the landscape, especially if they leverage their technology and efficiency from the fixed income side.
According to him, “The NGX has had the field to itself for years; competition could lead to better pricing, innovation, and product diversity.”
However, some caution that building a viable equities market will require more than ambition. Chief Business Officer, Optimus by Afrinvest, Ayodeji Ebo, stated that liquidity could be the real challenge.
“If FMDQ cannot attract enough issuers and active investors quickly, the market could struggle to gain traction despite its infrastructure and expertise.” he said.
Policy watchers also stress the need for a supportive regulatory environment. A financial market consultant, Dr Nonso Obikili, said, “The Securities and Exchange Commission (SEC) will have to ensure a level playing field, especially in terms of listings and investor protection.
If FMDQ delivers on its plans, Nigeria’s capital markets could be on the verge of their fiercest competition yet, a duel that might finally end NGX’s decades-long run as the nation’s sole equities trading venue.
While the coming battle between NGX and FMDQ is attracting market attention, NGX Group’s Chief Executive Officer, Temi Popoola, has long taken a more collaborative stance.
Delivering a keynote at the 2025 Chartered Institute of Stockbrokers (CIS) National Workshop at the Presidential Villa in Abuja last month, Popoola emphasized the importance of cooperation among market stakeholders to deepen capital formation and boost investor confidence, without explicitly referencing FMDQ’s challenge.
He has consistently advocated for revising listing rules, enhancing market access, and working closely with regulators to attract more companies and retail investors to the NGX.
According to Popoola, Nigeria’s capital market stands at a pivotal point in the nation’s economic journey, with the potential to serve as the engine of sustainable growth if its opportunities are fully harnessed.
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