The Debt Management Office (DMO) on Thursday appointed Stanbic IBTC Stockbrokers Limited as the Federal Government’s official stockbroker, marking a strategic move to bolster Nigeria’s domestic bond market.
In its new role, Stanbic IBTC – a prominent stockbroking and investment management firm in Nigeria- is expected to help government attract necessary investments and develop the retail market.
The appointment comes after the tenure of CSL Stockbrokers Ltd., a subsidiary of First City Monument Bank (FCMB), expired.
Patience Oniha, Director General of the Debt Management Office (DMO), stated that Stanbic IBTC Stockbrokers would serve as a vital platform for retail investors while also providing regular guidance and advisory services to the Government.
She explained the reason why Government needed a stockbroker whose functions are clearly defined, first of all, to comply with the Nigerian Exchange Group (NGX) requirements, being the largest issuer of securities, and secondly to deepen the market.
“We did quite a lot with wholesale investors, and that has helped us to achieve diversification for our FGN bonds, and the sukuk.
“But we realised that this smaller group may not have the money like the big players. They can invest in equities, but we believe that giving them fixed income securities is also another option.
“For that reason, we need to create awareness, particularly for products targeted at them – the FGN savings bond, and also create a secondary market for them,” Oniha explained at a brief event to announce the appointment in Abuja”, she said.
She Stanbic IBTC stockbrokers was chosen since it is a strong and respected brand with a wide reach – in the retail, capital market, and pension business as well.
“Those qualities matche our needs. Their sheer reputation, diversification as a group, and they have been in this role before for the federal government, but now with an expanded role.
“All of those sort of qualified you for the appointment as the government stockbroker”, she added.
She recognised the low awareness in the retail market, noting that increasing awareness would be one of the key responsibilities of the new stockbroker.
She emphasised that liquidity, awareness campaigns, workshops, and similar initiatives would be essential to support that segment of the market.
She stated that the DMO had made significant progress since initiating the process of appointing a Government stockbroker with an expanded role, but emphasised that “there is still much more to be done through engagements with other institutions and retail investors.”
She affirmed the DMO’s commitment to collaborating with Stanbic IBTC to achieve their established objectives.
Additionally, she indicated that the DMO would periodically seek guidance and advice from Stanbic IBTC.
Bunmi Olarinoye, Chief Executive Officer of Stanbic IBTC Stockbrokers Limited, expressed her gratitude for the confidence placed in the firm and the opportunity to assume such a pivotal role.
Read also: Adeonipekun becomes Registrar/Chief Executive of Chartered Institute of Stockbrokers
She stated that the DMO’s plan to enhance the retail segment of the market aligns with their own objectives, as they have been developing strategies to strengthen and enrich that area.
She emphasised that enlightenment and awareness are crucial elements they had identified for growing and expanding that segment of the market, and they would focus vigorously on these initiatives to attract more investors.
She also assured that they would collaborate with the DMO to deepen the market and achieve their established goals.
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