'Nigeria needs functional financial market to hedge currency risks, others' – Guardian Nigeria

The Association of Corporate Treasurers of Nigeria (ACTN) and FMDQ have emphasised the need to have a functional financial market to address currency volatility and rising interest rate in the country.
The Chief Executive Officer, FMDQ Group, Bola Onadele, was represented by the Managing Director, FMDQ Securities Exchange Limited, Ms. Tumi Sekoni, at ACTN’s treasury 360 conferences and exhibition with the theme: “Getting through the uncertainties of supply chain disruption, currency volatility and inflation” in Lagos, however, said the Nigerian financial market does not have the product diversity and depth to help the nation effectively manage the financial risks.
According to him, the history of Nigeria’s financial market is punctuated with highs and lows but has always emerged better as a market both in terms of product diversity and depth.
“Thus, it is fitting that the focus of this conference is on the management of these risks. Indeed, this affords all participants representing various stakeholders’ interests a splendid opportunity to engage in an enlightening discourse on the detrimental effects of supply chain disruption, currency volatility and rising inflation on businesses and the required risk mitigation strategies that can be employed to get us through the economic uncertainties,” he said.
He commended ACTN for organising the maiden edition of the Treasury 360 Conference which he said is a platform for all participants to reflect and exchange ideas on the future of businesses, markets, and the economy at large.
He said with food and energy prices hitting record highs, inflation is rising around the world and the prospect of a “cost of living” crisis looms for many people across the world.
He pointed out that inflation has doubled in 37 of 44 advanced economies over the past two years, adding that Nigeria has not been spared from the worst effects of these global shocks.
“To combat rising inflation, the Monetary Policy Committee of the Central Bank of Nigeria (“CBN”) has raised interest rates thrice this year to 15.5 per cent, its highest level since 2006. Despite this and several other efforts geared towards protecting the economy, currency volatility and rising interest rates remain very important financial risk factors for all corporate treasurers in Nigeria today,” he said.
Earlier, the president and Chairman of Council, ACTN, Mrs. Victory Olumuyiwa, said the conference is a platform inspired by the Corporate Treasury Practitioners’ commitment to making positive and impactful contributions to the global relevance of its Nigerian Business economies while contributing its quota towards strengthening the country.
“This conference is the first in the series of strategic engagements to inform, educate, highlight, partner and deliver on what will become the foundation for growing the relevance of Nigerian Business economies with a focus on our global relevance,” she said.
“The importance of a forum like this underscores the important role of corporate treasurers to overcome these challenges and accelerate the pace of change in 2023 and beyond. You will all agree with me that this opportunity to seek and implement pragmatic solutions cannot be overstated,” she added.
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