Chike-Obi requests assistance with margin loans

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Securities and margin lending, according to Fidelity Bank Plc Chairman Mustafa Chike-Obi, can increase the amount of trading on the Nigerian capital market.

He talked when he was a fellow of the Chartered Institute of Stockbrokers, according to a statement.

Chike-Obi, who founded Asset Management Company of Nigeria and currently serves as its first chief executive officer, also promised to collaborate with the institution to launch initiatives to re-open debates on margin lending in the Nigerian capital market.

"With margin lending, the Nigerian capital market may bounce back again in addition to all the recent accomplishments and regulation," he stated. Lending on margin will boost the number of transactions in the market. It will produce value propositions and hedging opportunities.

"Unless we accomplish it, our capital market will function like a dinosaur. This applies to debts as well as stocks. I will put in time and effort to help the market now that I am an honorary fellow. Within the next two years, we'll see to it that margin lending becomes a reality in Nigeria.

The statement claims that margin lending offers liquidity at the cash end. On the Nigerian stock exchange, it was well-liked.

But, it was put on hold because of how some market participants were using it. On the other side, securities lending involved lending shares, bonds, or derivative contracts to other investors or businesses in order to create liquidity.

As CEO of AMCON, debt in the financial sector was one of Chike-largest Obi's challenges, and he acknowledged the urgency of finding a speedy fix.

Chike-Obi was praised for being awarded the honorary fellowship of the institute by the CIS President, Mr. Oluwole Adeosun.

"Mustafa Chile-Obi has the ideal base to succeed in the capital market," Adeosun remarked.

"A few years ago, the governing council of the Chartered Institute of Stockbrokers made the wise decision to admit individuals who have established themselves as thoroughbred professionals of the calibre deserving of being a Stockbroker into our membership group.

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