E-Financial
FMDQ Commends CBN for Restoring Transparency in FX Market
Mr. Bola Onadele Koko, the Chief Executive Officer, FMDQ Group, has hailed the Central Bank of Nigeria (CBN) for activating the on-system trading and reporting of foreign exchange (FX) transactions on the FMDQ-advised System.
The CBN in line with its desire for a more liquid market, last month, took a remarkable step in increasing transparency by activating the on-system trading and reporting of FX transactions on the FMDQ-advised System.
The move was supported by the adoption of NAFEX as the benchmark rate for the public sector foreign currency-denominated transactions.
Commenting on this development, Onadele said: “FMDQ is excited at the introduction of market-building initiatives by the CBN to ensure the further development of the FX market, in recognition that a liquid, transparent and credible FX market is a major precursor for increased inflows into the Nigerian financial market.
“FMDQ remains committed to institutionalizing structures – efficient processes, systems, etc., in collaboration with market stakeholders, to support initiatives towards delivering a thriving FX market that is well-positioned to support the Nigerian economy.”
According to him, addressing the market, the CBN Governor, Mr. Godwin Emefiele, had emphasised the importance of a transparent and credible FX market, and had reiterated the CBN’s commitment to implementing market-enhancing initiatives required to inspire confidence towards sustaining and deepening the Nigerian FX market.
To this end, the FMDQ CEO said the implementation of market initiatives have seen a significant increase in the turnover recorded in the FX market, from an average monthly turnover recorded in January to April 2021 at $1.30 billion, compared to May 2021 with $2.52 billion turnover recorded, whilst the number of executed trades rose from an average monthly number of 6,733 trades in January to April, to 6,949 trades in May.
“The renewed confidence and depth in the FX market will improve the attractiveness of the Nigerian market to foreign portfolio investors and also pave the way for the introduction of new derivatives products on FMDQ’s platform to support hedging of risk exposures by both local and foreign market stakeholders,” he said.
According to him, as Africa’s first vertically integrated financial market infrastructure (FMI) group and a one-stop platform to commence and end all financial market transactions in a seamless, timely and cost-efficient manner, FMDQ Group remains positioned to collaboratively work with market stakeholders in developing the Nigerian markets through innovative and value-adding solutions.
“With its renewed aspiration as encapsulated in its mission to ‘collaborate to empower markets for economic progress towards delivering prosperity’, FMDQ Group, having consolidated its activities into a fully diversified platform across multiple asset classes is strategically positioned to support the transformation of the Nigerian financial market to become globally competitive, operationally excellent, liquid, and diverse,” he said.
Central Bank of Nigeria (CBN) spent N315.18bn on currency issue expenses in 2024, marking a sharp increase of 306 per cent compared to N77.67bn recorded in 2023, the apex bank’s audited financial statement for the year has shown.
Currency issue expenses cover the printing, processing, distribution, and disposal of banknotes.
The latest figures reveal that the CBN’s cost of managing physical cash spiralled dramatically during the year under review, as Nigeria grappled with lingering cash shortages and disruptions in the money supply chain.
The surge in expenditure came as the country continued to deal with the effects of the naira redesign policy introduced in late 2022.
Despite efforts to stabilise cash circulation throughout 2023, Nigerians still faced queues at ATMs and difficulties in accessing cash in early and late 2024.
Faced with mounting public outcry, the CBN deployed several emergency measures to address the crisis.
Deposit Money Banks were directed to ensure consistent ATM loading and rural cash distribution, while the Bank also launched public hotlines for citizens to report cash scarcity incidents.
Also, the CBN ramped up enforcement efforts, including deploying monitoring teams, issuing sanctions against non-compliant banks, and mandating improved cash distribution.
PalmPay, a full-service digital bank, has reaffirmed its dedication to advancing the future of payments in Nigeria by promoting the widespread adoption of contactless-enabled payment terminals.
This was made known during the recently concluded BusinessDay Future of Payment Conference, themed “Fintech Evolution: Gateway to Payments.” In his welcome address, BusinessDay Publisher, Frank Aigbogun, emphasized that the next phase of fintech innovation must be driven not only by speed, safety, and simplicity but also by trust, inclusion, and accessibility to ensure broad-based impact across all segments of society.
Talking about PalmPay’s impact in the panel session titled “The Next Wave of Digital Payments: Trends and Innovation,” Ifeanyi Uzoka, Senior Business Development Manager at PalmPay, discussed the evolving landscape of digital payments in Nigeria.
He noted that while regulatory frameworks have supported the introduction of contactless payments, the high level of cash dependency remains a key barrier to widespread adoption.
“At PalmPay, financial inclusion is central to everything we do,” Uzoka stated. “To support this mission, we’ve launched contactless-enabled debit and premium cards, ensuring our users have access to convenient and secure payment experiences. We also understand that trust is critical, which is why all contactless transactions on PalmPay’s platform include an additional layer of authentication for enhanced security.”
PalmPay continues to lead innovation in Nigeria’s digital finance ecosystem by delivering secure, user-friendly, and future-ready solutions. The company’s recently launched debit and premium cards in partnership with Verve are now serving its growing base of over 35 million users nationwide.
This move into contactless payments underscores PalmPay’s alignment with global payment trends and its ongoing commitment to building a more inclusive and digitally empowered economy.
First Asset Management Limited, a leading investment management firm in Nigeria and a subsidiary of First HoldCo Plc., has announced a significant milestone, the company has surpassed ₦1 trillion in Assets Under Management (AUM).
This achievement reflects the firm’s steadfast commitment to delivering exceptional client service and strong investment performance. It also underscores the trust and loyalty shown by its clients, partners, and stakeholders, which have been instrumental in driving the company’s sustained growth.
Speaking of the milestone, Ike Onyia, Managing Director of First Asset Management Limited, credited the accomplishment to the enduring support of the firm’s clients and stakeholders.
“This milestone is a clear indication of the confidence placed in us by our clients and partners. It highlights the firm’s ability to deliver successful investment outcomes and reinforces its dedication to fulfilling its mandate,” Onyia said.
He went on to express deep appreciation to the firm’s clientele: “The continued partnership of our clients is not taken for granted. Their commitment has been pivotal, and the performance of their investments inspires the team’s dedication to providing best-in-class service. As the firm continues to grow, it remains focused on deploying innovative and forward-looking investment strategies tailored to each client’s financial goals.”
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