‘Not true!’ CBN accounts for just 23%, not 67% of our revenue, FMDQ says

FMDQ, a securities exchange and self-regulatory organization (SRO), has debunked the report that the apex bank in Nigeria single-handedly accounts for N31 billion, about 67% of its earnings in 2020.

Recalled that recently, a market survey online platform claimed that FMDQ’s latest financial statement shows that FMDQ is benefiting from its monopoly as the major platform where the Central Bank of Nigeria (CBN) FX futures contracts are traded.

In a detailed response made available to Freelanews, the organisation claimed that contrary to the report that its revenues come largely from fees paid to it by the CBN, its revenues are from diverse sources, contrary to what was reported.

These include 23% (2019: 8%) from the CBN (as a transaction party in the OTC FX Futures market), 41% (2019: 53%) from clients (local and foreign), 17% (2019: 14%) from Dealing Member (Banks) and 18% (2019: 25%) from other sources including securities admissions, interest income, settlement and depository services, private market notings, amongst others.

In a related development, while the FMDQ confirmed that its CEO, Bola Onadele.Koko, was issued stock options as part of his compensation, vesting at the end of his contract, based on pre-specified key performance indicators, the report that he pocketed N4.66bn was bogus.

“As the stock options are not due to be exercised till 2024, no cash settlement has been made to the CEO, and none will be until the terms of the agreement are fully met at the end of his contract.

“The stock options as at Dec 31, 2020, as professionally valued by our External Auditor, KPMG, is N2.51bn as accounted for in our financial statements. There is no record of the N4.66bn in our financial statements,” the response noted.

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