Last year there was a series of changes that impacted the Nigeria custody market directly or indirectly. Two overthe- counter (OTC) trading platforms were launched, the Financial Markets Dealers Quotations (FMDQ) and National Association of Securities Dealers (NASD) led to a more efficient platform for trading unlisted equities. The number of depositories also increased when the Central Bank of Nigeria assumed a depository position and the Securities and Exchange Commission (SEC) launched a 10-year plan for the Nigerian capital market.

In terms of technological advancement, the Nigerian Stock Exchange (NSE) deployed Nasdaq OMX X-GEN to replace its automated trading system, Horizon. The NSE claims it has the fastest trading platform of any exchange in Africa. In addition, the NSE has become a member of the World Federation of Exchanges. Lastly, in Q4 2014 VAT exemptions on Nigerian Stock Exchange (NSE) transactions were implemented.

“From a social and economic perspective there have been a few bumps in 2014. More recently the drastic drop in the oil price has probably hit the currency and the economy the hardest. This has led to a decrease in the valuation of the stock market and has consequently had a negative impact on foreign investor flows,” says Akeem Oyewale, deputy head of investor services for Stanbic IBTC.

Notwithstanding the social and economic challenges, including presidential elections in Q1 2015, the capital market in Nigeria continues to develop. In terms of the sub-custody business, there are three international providers that dominate the market, Stanbic IBTC being the largest by a significant margin.