FMDA President on importance of financial markets to Nigeria’s economy

Financial markets play a crucial role in driving sustainable economic growth in any society, be it emerging, frontier, or developed. According to Sam Ocheho, President of the Financial Markets Dealers Association (FMDA), the financial market serves as a catalyst for economic development by unlocking capital and providing financing opportunities. Ocheho highlighted the importance of channeling funds into sectors such as agriculture, which significantly contribute to Nigeria's GDP but often struggle to attract adequate financing due to the informal nature of the industry. By developing tailored financial products and addressing the perceived risk associated with investing in sectors like agriculture, the financial market can better serve small businesses and drive economic growth in Nigeria. During a discussion at the Financial Markets Conference, Ocheho emphasized the need to change the mindset around financing agriculture and other key sectors. He noted that while there is investor interest in these areas, the lack of appropriate financial products hinders investment opportunities. Ocheho stressed the importance of collaboration between financial institutions, regulatory bodies, and government agencies to develop innovative products that reduce the cost of capital for small businesses and facilitate access to financing. When discussing the challenges of developing products for small businesses, Ocheho acknowledged the complexity of the task. He emphasized the need for collaboration with entities such as the Central Bank of Nigeria and low-cost fund providers to address the high cost of capital prevalent in the banking sector. By bringing together stakeholders from various sectors, including development finance institutions and regulatory bodies, Ocheho believes that a concerted effort can be made to create financial products that meet the specific needs of small businesses and promote economic growth. In conclusion, the role of the financial market in Nigeria's economy cannot be overstated. By focusing on developing tailored financial products, addressing sector-specific challenges, and promoting collaboration among key stakeholders, the financial market can serve as a powerful engine for sustainable economic growth in Nigeria.