As of October 11, 2024, the FMDQ Exchange Debt Market has reached a size of N77.41 trillion, marking a significant milestone in Nigeria’s capital market landscape.
This figure represents the total value of debt securities listed on the FMDQ Exchange, which includes bonds issued by corporations, commercial banks, and government entities. The robust growth in the debt market reflects the increasing use of debt instruments by companies and governments to raise capital for various development and operational purposes.
Over the years, the FMDQ Exchange has played a pivotal role in deepening Nigeria’s debt capital market. A wide range of debt securities are listed on its platform, including corporate bonds, government bonds, and commercial papers. Notable listings include Dangote Cement PLC’s ₦35.91 billion 13.50percent Series 1 Fixed Rate Senior Unsecured Bond, due in 2028, and MTN Nigeria Communications PLC’s ₦110.00 billion 13.00percent Series 1 Senior Unsecured Fixed Bond, also due in 2028. These instruments highlight the confidence major corporates have in FMDQ as a reliable platform for debt financing.
The exchange’s infrastructure is designed to support issuers in efficiently raising debt capital, while also providing liquidity through its secondary market operations. FMDQ’s Listings and Quotations service facilitates access to the debt market for corporates, financial institutions, and government bodies, offering a seamless process for raising long-term finance.
FMDQ Exchange has undergone substantial evolution since its inception. Initially an over-the-counter (OTC) market, it has transformed into a full-fledged securities exchange and a vital player in Nigeria’s financial ecosystem.
The FMDQ Group PLC, the holding company for the exchange, has expanded its scope of services through its five subsidiaries. These include FMDQ Securities Exchange Limited, the largest exchange by market turnover in Nigeria, averaging around ₦177.49 trillion annually over the last decade. FMDQ Clear Limited, the country’s foremost central counterparty, has cleared derivatives contracts worth approximately $67 billion.
Additionally, FMDQ Depository Limited serves as an integrated securities depository, while FMDQ Private Markets Limited acts as a repository for private capital information, providing a structured platform for private companies to access financing. Lastly, iQx Consult Limited, the technology arm of the FMDQ Group, offers IT services that enhance the exchange’s operational efficiency and technological robustness.
The impressive debt market size of ₦77.41 trillion underscores the critical role FMDQ plays in facilitating capital formation in Nigeria. By providing an efficient platform for debt issuance and trading, the exchange is helping to meet the financing needs of both the private and public sectors. Analysts expect continued growth in the debt market as more companies and government entities turn to the FMDQ Exchange to raise funds in the face of challenging economic conditions.
This upward trajectory is also bolstered by the current high-interest-rate environment, which has led investors to seek secure, risk-free assets. With more issuers expected to list debt securities, the FMDQ Exchange is well-positioned to remain a key player in Nigeria’s capital markets, contributing to economic growth and development.
