Nigerian Stock Exchange could start trading Naira futures as early as 2017, says CEO Oscar Onyema

Oscar Onyema, CEO, Nigeria Stock Exchange

The Nigerian Stock Exchange plans to start trading naira futures that will help investors hedge against movements in the local currency, Chief Executive Officer Oscar Onyema said.

“It would be awesome if we had a naira-dollar contract that we could trade on the exchange,” he said in an interview in London on Monday. “Futures and options are asset classes that we think would be very beneficial to foreign investors.”

The bourse might offer futures by the end of 2017, Onyema said. Traders and bankers have called for a loosening of controls enforced by central bank Governor Godwin Emefiele to protect the currency of Africa’s biggest oil producer against a 45 percent slump in Brent crude prices in the past year. The naira has weakened 18 percent against the dollar in that period.

Read more: Nigeria Bourse Seeks to Start Trading Local Currency Futures – Bloomberg Business