Nigeria’s first indigenous brokerage firm marks 40 years

For the board of directors and staff of Financial Trust Company (FCT) Limited Wednesday, May 11, was a time to reflect on a journey which began forty years ago, the first indigenous stock-broking firm in Nigeria, which marked the milestone for an indigenous company operating in a hostile business environment.

A report from Small Business Administration (SBA) stated that nearly 66 percent of small businesses survive their first two years. It was not surprising therefore, that the Group Managing Director of Financial Trust Company, Alexander Ajayi regarded their forty years in existence as a no mean achievement.

“We are grateful to God and appreciate all our numerous customers, business associates, employees, friends of the company and shareholders for their contributions to the achievement of this milestone. You will agree with me that surviving the challenges of an operating environment like ours, talk of – the economic, political and global challenges for forty years calls for celebration,” said Bolaji Afolaji, CEO of the company.

From a family business, Financial Trust morphed to become a key player in an industry that was mostly dominated by foreign businesses. Alexander Ajayi recalled the journey so far and the obstacles the firm have had to face.

“It has not been an easy journey. My father Otunba William Ajayi established the company founded the business in 1976. He had a drive for Nigeria’s growth and industrialization of the capital market so he went to his Uncle Kunle Ajayi and asked for support. That was how he incorporated Financial Trust. He applied for the license at the then Lagos Stock Exchange and he became the first indigenous brokerage house – the first founded by a Nigerian,” said Ajayi.

The firm derives most of its strength from its crop of steadfast staff members. One of them has been with the company since it was founded in 1976.

“We take care of our own,” said Ajayi. “We have been through a period of growth, we even diversified and started an insurance firm called Financial Assurance. People were amazed at the growth of the company at such a short time. Our joy is that we have survived.”

The forty years celebration is a new beginning, said Afolaji the CEO. “There is a saying that life begins at forty. At forty, FTC is coming out stronger and is bound to make its landmarks in the history of life, both in Nigeria and in the whole world.”

In view of the anticipated beginning, FCT is positioning itself strategically to proffer solutions to the challenges in the stock market and provide cutting edge services for its clients. It also recognizes the role the government has to play in creating an enabling environment for businesses to thrive.

“The private sector has to drive the economy. The deregulation and the privatisation of the economy is a critical factor. Firms and industries have to get listed to raise more capital. You know many efforts are being made to bring some of the giants to list in the stock exchange. So the primary market has to be energized. This is going to be the way to grow the market. The objective of the exchange is to reach $1 trillion in market capitalisation. You are going to have to bring some of the biggest companies in the country. The power sector has to come, oil and gas, the deregulation is happening so we know companies are going to come because they are going to need capital to build their capacity, to build the private sector refineries and to grow agriculture.

“There is so much capacity that needs to be developed in this country.  That is where we want to key in as the facilitator and an intermediary in the market – from the equity and also to access the NSD, FMDQ. We have pioneered a lot of products that were not listed but that was a young market, now the market is well developed and you have to go through a process with SEC for collective investment pool, real estate investment trust, infrastructural bond and so on. We are building our capacity. We are creating products that attract people to the market.”

 

FRANK ELEANYA