E-Financial
The Nigerian Capital Market Witnessed the Emergence of Its First Central Counterparty
The Nigerian Capital Market on Thursday, December 9, 2021, witnessed a monumental milestone as NG Clearing limited, the first Central Counterparty in West Africa, formally launched her operations.
The launch of NG Clearing as a CCP means that exchange-traded derivatives are now a possibility in the Nigerian Capital market.
As a Financial Market Infrastructure (FMI), NG Clearing facilitates the clearing and settlement of exchange-traded derivatives, management of counterparty risk, reduction of systemic risk, and promotion of the safety and integrity of Nigeria’s capital market.
This opens new and clear opportunities for investors, stakeholders, and other players in Nigeria’s capital market.
The event was hybrid, and it had a mix of high-profile physical and virtual participants. The Secretary-General to the Government of the Federation, Mr. Boss Mustapha was represented by Mr. Paul Kanu.
The Governor of Lagos State was also represented by Mrs. Alake Sanusi. The legislative arm of the Nigerian Government was represented by Honorable Babangida Ibrahim, The Chairman, House Committee on Capital Markets.
The Governor of Edo State, Mr. Godwin Obaseki, The Honourable Minister of Finance, Mrs. Zainab Ahmed, The Honorable Minister of Trade, Industry and Investment Otunba Adebayo Adeniyi, The Director-General of the SEC, Dr. Lamido Yuguda, The Deputy Governor, Financial Systems Stability Directorate, Mrs. Aisha Ahmad and Mr. Tony Elumelu CON, the Chairman of Heirs Holdings all participated virtually with speeches and special remarks.
In his opening speech, the Managing Director and Chief Executive Officer of NG Clearing Limited, Mr. Tapas Das expressed delight as he stressed the monumental significance of NG Clearing’s launch for the Nigerian Capital Market.
He linked the emergence of NG Clearing to the maturity of the Nigerian financial ecosystem stating that “With Nigeria’s capital market maturing into offering advanced capital market products such as futures derivatives, it is only ideal to establish a CCP, in line with global best practices.
“The emergence of NG Clearing is not only an indication of our collective growth as a market but also a marker of the forward-looking intent of the Nigerian capital market”.
He went on to describe the company’s vision as well as the depth of capacity in place to ensure NG Clearing delivers on its vision. He explained that “Our vision is to become Africa’s most trusted CCP.
“With this vision in mind, we have left no stone unturned in ensuring that we offer world-class infrastructure, transparent and resilient processes, with an experienced team of worthy professionals.”
Mr. Oscar N Onyema OON, the chairman of NG Clearing chronicled the origin of the NG Clearing dream in his address. He stated that “The NG Clearing dream was borne out of a firm commitment to position the Nigerian capital market as a stable and resilient market that offers local and foreign investors sound opportunities without compromising global standards.
On this premise, we took steps to identify the gaps that inhibit our market from attaining this positioning. One of the gaps we identified was the absence of the financial market infrastructure known as a CCP.” He also noted that having a CCP is key to the realization of the Nigerian Capital Market master plan.
The Minister of Finance, Dr. (Mrs.) Zainab Shamsuna Ahmed noted that NG Clearing’s emergence will contribute to the post-covid-19 recovery of the Nigerian Economy. She also mentioned that “a door of new possibilities has been opened for growth and development of the Nigerian economy”.
In a similar vein, the minister of Trade, Industry, and Investment, Otunba Adebayo Adeniyi opined that “NG Clearing emergence redefines Nigeria’s financial landscape, creating endless possibilities for products that can be developed and deployed”.
Dr. Lamido Yuguda, the Director-General of the Securities and Exchange Commission, asserted that the launch of NG Clearing as a CCP is historic for the Nigerian Capital Market.
In his words, “the services of NG Clearing will help in deepening the market while placing it on the right path to achieving the required sophistication, depth, and breadth in terms of products and service offerings.”
He went on to note that the SEC will continue to deliver on its mandate of ensuring the Nigerian capital market is safe, orderly, and built on integrity.
Mrs. Aisha Ahmad, the CBN Deputy Governor, Financial Systems Stability Directorate, gave special remarks. She extensively detailed the important roles of NG Clearing in driving stability in the ecosystem. She also stressed the need to adopt sustainable approaches that contribute to the combating of climate change.
The governor of Lagos State, H.E Babajide Sanwo-Olu as well as the Governor of Edo State, H.E Godwin Obaseki profusely congratulated the Board and Management of NG clearing on the laudable feat of establishing the first CCP in West Africa.
At the event, there was a virtual in-depth panel session on how NG Clearing as a CCP will contribute to the resilience of Nigeria’s Financial System. The session had Teo Floor, CEO of CCP12 (the Global Association of Central Counterparties), Alicia Greenwood, CEO of JSE Clear (South Africa), Narendra Ahlawat, CEO of Multi Commodity Exchange Clearing Corporation (MCXCCL, India), Uche Orji, CEO of the Nigeria Sovereign Investment Authority (NSIA), and Ayodeji Balogun, CEO of AFEX Commodities.
Having been incorporated in 2016 and having also gotten the Securities and Exchange Commission’s nod to begin operations in June 2021, the launch of NG clearing culminates a long journey towards the creation of a world-class- post-trade services provider with a focus on advanced capital market offerings.
The event was streamed live on zoom and YouTube, you can watch the replay with this link https://bit.ly/NG-ClearingLaunchReplay
The Bank of Industry, through BOI Financing SPV Plc, has opened subscriptions for its inaugural Series 1 Fixed Rate Bond worth up to N250bn under its $1bn multi-currency instruments programme, seeking to raise long-term capital to finance businesses across Nigeria’s priority sectors.
The offer, which opened on 5 August and closes on 11 August, is being arranged by Chapel Hill Denham as the lead issuing house. The five-year bond is priced within a yield range of 17.35 per cent to 17.50 per cent and will be listed on the FMDQ Securities Exchange.
According to the offer document, proceeds from the issuance will be deployed to finance eligible businesses and projects across sectors, including agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, creative industries and solid minerals, in line with BOI’s development finance mandate.
The lender said the financing is expected to improve access to medium and long-term funding for Nigerian enterprises, expand productive capacity, create and preserve jobs, deepen local value addition, support import substitution, boost exports and strengthen domestic value chains.
BOI, Nigeria’s foremost development finance institution, said it has provided funding to more than one million businesses across the country and disbursed over N1.27tn between 2023 and 2025. The institution operates across 34 states and the Federal Capital Territory and is jointly owned by the Ministry of Finance Incorporated and the Central Bank of Nigeria.
The bank also highlighted its financial performance, reporting a 36 per cent compound annual growth rate in gross earnings between 2021 and 2025.
Interest income rose 64 per cent to N884bn in 2025 from N538bn in the previous year, while its capital adequacy ratio stood at 39 per cent, nearly four times the regulatory minimum of 10 per cent. Its non-performing loan ratio was 1.7 per cent, below the CBN’s prudential limit of five per cent.
The bond has been assigned AAA ratings by Agusto & Co. and Intelligence Africa, reflecting the issuer’s strong capitalization, profitability, liquidity and ownership structure.
The issuance is open to institutional and qualified investors with a minimum subscription of N5m and additional investments in multiples of N1m. Interest will be paid semi-annually at a fixed rate, while principal repayment will begin in the third year through equal semi-annual amortised instalments until maturity in 2031.
The bond is also exempt from tax, making it an attractive investment option for investors seeking stable returns amid expectations of declining interest rates.
E-Financial
SEC Unveils Probate/Unclaimed Monies Clinic to Help Families Recover Inherited Investments
Securities and Exchange Commission (SEC) has intensified efforts to reduce unclaimed funds and other dormant investment assets by launching a Probate/Unclaimed Monies Awareness and Investor Clinic aimed at helping beneficiaries recover inherited investments and strengthening investor protection in Nigeria’s capital market.
Speaking at the opening of the clinic in Abuja organised by the Commission in partnership with Meristem on Thursday, Dr. Emomotimi Agama, director-general, SEC, said the initiative was designed to bridge the gap between investors’ legal entitlements and their ability to access inherited assets.
He noted that many Nigerian families face prolonged delays in accessing shares, dividends and other investments after the death of loved ones because they are unfamiliar with probate procedures, documentation requirements and registrar processes.
“For many Nigerian families, the death of a loved one who held shares, dividends, or other investments marks the beginning of a long and often confusing journey,” Agama said.
Describing unclaimed funds and dormant assets as a persistent challenge, he said they represent “real money that belongs to real families, sitting idle, disconnected from the people it was meant to serve.”
According to him, the Commission is committed to closing the gap through policy initiatives and direct engagement with investors.
He explained that the clinic brought together the Federal Ministry of Justice, the Probate Registry, the National Population Commission and capital market registrars to provide practical guidance on probate procedures, required documentation and the recovery of inherited investments.
“Today is not simply an awareness session. It is a working clinic, designed to equip you with practical knowledge: how probate works, how to obtain the right documentation, and how to recover what is rightfully yours,” he said.
Agama stressed that SEC’s mandate to protect investors extends beyond the lifetime of shareholders.
“This Commission exists to protect your rights in the capital market, and that protection does not end when a shareholder passes on. It extends to ensuring their beneficiaries can access what is due to them without unnecessary hardship,” he added.
Also speaking, Ms. Nkechinyelu Okoye, acting chief executive officer, Meristem Registrars and Probate Services Limited, identified lack of awareness and poor estate planning as key reasons billions of naira in financial assets remain unclaimed.
“There are three categories of beneficiaries that we encounter quite often. The first are those who think only land, houses and other physical assets can be transferred legally from deceased loved ones. They do not realise that financial assets such as shares, fixed income investments and even money in savings apps also form part of an estate,” she said.
Okoye said another group consists of beneficiaries who are unaware their deceased relatives owned financial assets, while a third group knows the investments exist but does not understand the claims process or required documentation.
“I dare add a fourth category. These are investors who do not provide or update their KYC documents and, as a result, when they pass on, their loved ones have no idea they have investments to claim,” she said.
According to her, these factors have contributed to the rising volume of unclaimed dividends, dormant accounts and other abandoned financial assets.
“All of these categories contribute to the several unclaimed assets lying all around. Ultimately, financial resources that could have been beneficial to these beneficiaries remain inaccessible,” she said.
She described the investor clinic as more than an awareness programme, saying it would provide practical support to investors, beneficiaries, executors and administrators.
“Our goal is to empower investors, beneficiaries, executors, administrators and the general public with the knowledge they need to navigate probate and estate administration with greater confidence,” Okoye said.
She also urged investors to prepare valid wills, maintain accurate shareholder records and regularly update their Know Your Customer (KYC) information to make it easier for beneficiaries to access inherited investments.
“We want investors to appreciate the importance of preparing a valid Will, maintaining accurate shareholder records and ensuring that their affairs are properly organised. Taking these simple steps today can save families considerable stress and delay in the future,” she added.
The SEC said the clinic forms part of its broader investor protection strategy and provides participants with direct access to experts on tracing investments, verifying shareholder records, resolving probate-related issues and recovering unclaimed capital market assets.
Nigeria Deposit Insurance Corporation (NDIC) has reassured on the multiple layers of protection for the Nigerian banking industry with more than 98 per cent of depositors and 281 million accounts insured by the corporation.
Thompson Sunday, managing director, NDIC, gave the assurance in Lagos at the retreat for members of the House Of Representatives Committee on Insurance and Actuarial Matters.
He said that striking the right balance between innovation, consumer protection, and financial stability remains a key policy imperative.
The theme of the retreat was “Strengthening the Financial Safety Net in an Era of Banking Sector Recapitalisation and Fintech Innovation”.
He said the increasing digitisation of financial services has heightened exposure to cyber threats, fraud, data breaches, and operational risks.
He said that with banks’ adoption of emerging technologies, regulators and safety-net participants must remain proactive in identifying and mitigating these risks while encouraging innovation.
Sunday also highlighted the rapid growth of financial technology (fintech) which has revolutionised the way financial services are delivered.
He said: “Digital banking platforms, mobile money services, payment solution providers, and other fintech innovations have expanded access to financial services and accelerated progress toward financial inclusion. Millions of previously unbanked and underserved Nigerians now have access to formal financial services through digital channels”.
He said that as the banking industry adjusts to higher capital requirements and technological innovations reshape financial service delivery, adding that its imperativefor banks to reinforce rules that safeguard financial stability and protect depositors’ funds.
According to him, a strong and well-coordinated financial safety net system is necessary for maintaining stability and resilience in any modern financial system.
“It promotes public confidence, protects depositors, supports orderly resolution of distressed financial institutions, and helps prevent systemic crises. At a time when Nigeria is pursuing ambitious economic growth objectives, including the goal of attaining a one trillion-dollar economy in 2030, a robust and credible financial safety net is essential to maintaining depositors’ and investors’ confidence and enhancing financial system resilience,” Sunday said.
He said the recently concluded banking sector recapitalisation programme represents a significant milestone in strengthening the capacity of Nigerian banks to support economic development.
“Well-capitalised banks are better positioned to absorb shocks, finance large-scale investments, support enterprise growth, and withstand periods of economic uncertainty. However, while recapitalisation enhances the resilience of financial institutions, it must be complemented by effective regulation, sound governance practices, strong risk management frameworks and good compliance culture, all attribute of a reliable financial safety net,” Sunday said.
He said the stability of the financial system depends largely on the trust that depositors and investors place in financial institutions.
He said: “History has shown that where confidence is low, distress can spread rapidly, threatening the stability of, not only the financial system but the wider economy. It is, therefore, essential that institutions responsible for financial stability continue to strengthen measures that preserve and enhance public trust.
Also speaking, opening remarks, Ahmadu Usman Jaha, chairman, House Committee on Insurance and Actuarial Matters, said financial systems across the globe are being reshaped by rapid technological advancement, digital financial services, artificial intelligence, cybersecurity risks, and changing customer expectations.
He said Nigeria is undertaking one of the most significant banking recapitalisation exercises in its recent history, requiring banks to strengthen their capital base while remaining innovative, resilient and competitive.
“These developments present enormous opportunities for economic growth, financial inclusion and innovation. However, they also introduce new categories of systemic risks that require stronger institutions, modern regulatory frameworks, and robust financial safety nets capable of maintaining public confidence under all circumstances,” he said.
He explained that Nigeria’s banking industry continues to occupy a central position in our economy with banking sector assets running into several trillions of naira and serving tens of million of depositors across conventional banking channels and rapidly expanding digita platforms.
“Equally important is the rapid expansion of financial technology. While fintech innovation has significantly increased financial inclusion and payment efficiency, it also raises complex issues relating to cyber resilience, operational risk, consumer protection, digital fraud, and the scope of deposit insurance coverage. These are issues that require continuous legislative attention and collaborative policy responses,” he stated.
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