FMDQ to Launch Equities Market in Direct Challenge to NGX
TLDR
- FMDQ Group, operator of Nigeria’s fixed income exchange, has confirmed plans to launch an equities market
- The exchange has also introduced a new price discovery mechanism on its PenDealer platform and expanded its Qex Depository System to 47 participants
- The move will test whether FMDQ can break NGX’s dominance, which has long resisted competition
FMDQ Group, operator of Nigeria’s fixed income exchange, has confirmed plans to launch an equities market, setting up direct competition with the Nigerian Exchange (NGX).
The announcement came at FMDQ’s 13th annual general meeting, where Chairman Jibril Aku also revealed the extension of FX Futures contracts for long-term investors, raising holding periods from 12 to 21 months. The exchange has also introduced a new price discovery mechanism on its PenDealer platform and expanded its Qex Depository System to 47 participants, with ₦1.28 trillion worth of securities lodged.
Outgoing CEO Bola Onadele Koko said the equities market, alongside an unsponsored depositary receipts market, will be a priority. The move will test whether FMDQ can break NGX’s dominance, which has long resisted competition. Earlier attempts, such as the Abuja Stock Exchange launched in 2001, collapsed under regulatory pressure.
FMDQ reported ₦23.2 billion in pre-tax profit in 2024, up 66%, driven by treasury income and margin management fees. The Group says its next phase will focus on agility and innovation, with new initiatives in repo markets, private markets, and training via a standalone FMDQ Academy.
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Key Takeaways
If successful, FMDQ’s entry into equities trading could reshape Nigeria’s capital market structure, which has been dominated by the NGX. The timing is significant: NGX has enjoyed a strong 2025, with equity market capitalisation nearing ₦100 trillion. By leveraging its dominance in fixed income and strong treasury income base, FMDQ may attract issuers and investors looking for lower costs, innovative products, or faster execution. Still, challenges remain. NGX has the advantage of scale, brand recognition, and entrenched relationships with listed companies. Regulatory alignment will also be critical, as Nigeria’s history shows rival exchanges have faced institutional resistance. FMDQ’s strength lies in its ability to innovate—FX futures, depository services, and repo markets have already distinguished it from peers. If it can replicate that in equities, Nigeria may finally see a more competitive exchange landscape, potentially improving market efficiency and investor choice.
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