Follow Us on Google
By Chinwendu Obienyi
New honorary fellow of the Chartered Institute of Stockbrokers (CIS) and Chairman, Fidelity Bank Plc, Mustafa Chike Obi, has said margin lending can become as an instrument to increase the volume of transactions in the market.
Chike-Obi stated this during his conferment done by the Board and Council of the institute recently. The ceremony was attended by the past Presidents, members of the Institute’s Board of Fellows, Council Members, seasoned bankers and captains of industries
Whilst thanking the institute for the great honour, Chike-Obi said he has always regarded himself as a stockbroker and promised to work with the CIS to re-open the processes that will make margin lending work in the capital market.
“With margin lending, the Nigerian capital market in addition to all the recent achievements and regulation can bounce back again. Margin lending will increase the volume of transactions in the market. It will create hedging opportunities and value propositions. Until we do that, we are going to be a stone-age capital market. This is not for just equities but debt markets as well.
Now that I am an honorary fellow, I shall devote time and efforts to support the market. We shall make sure that margin lending is a reality in Nigeria in the next two years”, Chike-Obi said.
Earlier in his welcome address, the CIS’ President, Oluwole Adeosun, extolled the virtues of Chike-Obi as a thoroughbred professional and commended his continuous support to the growth and development of the economy.
He explained the justification for conferring honorary Fellowship to deserving people.
“The Governing Council of the Chartered Institute of Stockbrokers, in its wisdom a few years ago, decided to admit into our membership community, persons who have distinguished themselves as thoroughbred professionals of the calibre deserving of being a stockbroker.
As a result of this Council resolution, ten eminent Nigerians have been admitted as Honorary Fellows of the Chartered Institute of Stockbrokers, out of which seven have been invested. Today, we have gathered here to celebrate yet another true icon of the Nigerian corporate community who is being admitted into the CIS family”, Adeosun said.
Margin lending provides liquidity from the cash end. It was in vogue in the Nigerian capital market until it was suspended due to its controversial deployment by some market operators and banks at one point.
However, the Nigerian Exchange Limited (NGX), had in December 2015, launched Securities Lending and Borrowing (SLB) in the Nigerian capital market to boost transactions.
