CBN’s 15.4% Stake in FMDQ Raises Eyebrows as Exchange Posts N9.6bn Profit

The Central Bank of Nigeria (CBN) has revealed a 15.4% stake in the FMDQ Group as the Exchange reported after-tax profit of N9.6 billion in 2022, according to data from the CBN financials.

FMDQ, a budding financial market infrastructure Group, earned 23% of its revenues in 2020 from fees paid to it by the CBN, as a transaction party in the OTC FX Futures market.

Some analysts MoneyCentral spoke to said the CBN appears to be picking winners and losers with its FMDQ stake and patronage.

The FMDQ Group established less than a decade ago, which largely trades bonds, fixed income, currency and derivatives is in tight competition with the Nigerian Exchange Group Plc (owners of the stock exchange) and has grown to become 1.2 times larger than the sixty-three year-old NGX with a valuation of N58.5 billion.

FMDQ reported revenues of N20.6 billion for the 2022 financial year compared to N7.499 billion for the NGX, data from both their audited financial statements show.

Total assets at Full year 2022 for FMDQ came in at N178 billion, compared to N57 billion for the NGX, while FMDQ booked net income of N9.6 billion for the 2022 period compared to NGXs N698.4 million.