Business
Brokers Seek Support For Market Makers
Some capital market operators on Wednesday called on commercial banks to provide financial assistance to the newly appointed market makers in the capital market.
The operators said that collaboration and financial support by banks to the 10 market markers would create the needed depth and liquidity in the market.
A market maker is a brokerage firm that accepts the risk of holding certain quantities of a stock to facilitate trading in the security.
The Tide sources recalled that the Nigerian Stock Exchange (NSE), had on April 4, appointed 10 market markers to provide more liquidity and depth in the nation’s bourse.
The operators said in separate interviews in Lagos that the capital market needed special financial window before the market markers would start operating.
Malam Garba Kurfi, the Chief Executive Officer, APT Securities and Funds Ltd., said the N750 million minimum capital requirement for the market makers was inadequate for their operation.
He said that market making in troubled and depressed bourse like the NSE required more than N750 million for daily market intervention.
“Net capital requirement of N750 million each will not have any impact on the market without financial backing from the banks,’’ Kurfi said.
He advised the NSE to liaise with the Central Bank of Nigeria (CBN) to make credit lines available to the market markers.
“We are in a bear market where liquidity is a major challenge and this should be addressed,” he said.
Mr Okechukwu Unegbu, the Chief Executive Officer of Maxifund Investment and Securities Ltd., urged the apex bank to direct commercial banks to lend to selected market markers.
He told our correspondent that the introduction of market makers called for the training of banks’ personnel and exposure to the practice of market making.
Unegbu commended the appointment of the market markers, but charged them to adhere to laid down rules guiding their operations.
He also said that the NSE should ensure effective regulation and monitoring of the operators, stressing that market based supervision was important to achieve set goals..
Mr Eugene Ezenwa, the Managing Director of Pac Securities Ltd, however, said that activities of the market markers should be checked regularly to achieve the desired investor confidence in the market.
He said that the support of banks would help market makers to shore up the market liquidity.
The approved market makers are Stanbic IBTC, Renaissance Capital, Future View Securities, Vetiva Capital and ESS/DunnLoren Merrifield.
The others are WSTC, Capital Bancorp, FBN Securities, Greenwich Securities and CSL.
Mr Oscar Onyema, the Chief Executive Officer of NSE, said that the appointment of the market markers would reinvigorate the buoyancy of the capital market.
He said that the selected operators needed a minimum net capital requirement of N750 million each.
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
