FMDQ CEO pushes hedging products development before the next market shock

Managing Director and CEO Zeal Akaraiwe of FMDQ Group has urged Nigerian regulators and market institutions to build robust hedging markets while foreign exchange conditions are stable, ahead of possible future market shocks. Addressing investors at a meeting in Singapore, Akaraiwe likened market preparedness to buying an umbrella before a rainstorm.

The Central Bank of Nigeria (CBN) has been proactive in supporting market development, according to Akaraiwe, who praised its efforts in enhancing market credibility and predictability. However, he emphasized that market stability should lay the groundwork for innovation, particularly in products that help investors and businesses manage financial risks like currency fluctuations.

Akaraiwe called for technology-driven exchange-control monitoring, stronger professional competency, and a focus on market participants, infrastructure, credibility, and product development over the next five to ten years. He assumed his role as FMDQ Group CEO in June 2026, continuing the focus on market innovation, risk management, and capital-market development.

The recent comments follow FMDQ's introduction of the USD/NGN Non-Deliverable Forwards market in 2016, laying groundwork for foreign exchange hedging activities. The company's broader program also includes planned engagements in Beijing with international investors and financial institutions. Current FMDQ market data shows that spot transactions make up 96.19% of total FX turnover, while derivatives account for only 3.81% during the week ended October 2, 2026. This highlights the need for deeper hedging activity while exchange-rate conditions remain stable.