FTC AND THE RISE OF INDIGENOUS STOCKBROKING

  Financial Trust Company represents a defining chapter in Nigeria’s financial history, argues SOLA ONI

During my time at The Guardian covering the capital market in the early 1990s, Financial Trust Company (FTC), Nigeria’s first indigenous stockbroking firm, stood out as a major player in the financial system. Founded by the late Otunba Olufemi Ajayi, a foremost respected figure in Nigeria’s financial czar, will be always remembered for his pioneering contributions to the development of indigenous stockbroking.

Incorporated 50 years ago, the company’s recent golden jubilee anniversary, hosted by the founder’s son, Omoniyi Ajayi, its Chairman and Group Managing Director, offers an opportunity to reflect on the evolution of indigenous stockbroking in Nigeria. At a time when expatriate institutions and foreign commercial interests dominated the financial landscape, FTC marked a shift towards economic nationalism, professional development, and greater local ownership of financial services. Licensed by The Nigerian Stock Exchange (now NGX) on July 8, 1977, the firm emerged as a trailblazer when Nigerian participation in formal capital market activities was still limited.

A brief look at history shows that first three stockbroking firms in Nigeria were promoted by foreigners. Nigerian Stockbrokers Limited, was licensed on May 2, 1961. It was followed by Capital Trust Limited on October 25, 1968, and ICON Stockbrokers Limited on November 30, 1973. However, following the emergence of FTC in July 1977, City Securities Stockbrokers Limited (now CSL Stockbrokers Limited), founded by the late financial savvy, Otunba Olasubomi Balogun, was licensed on November 4, 1977, becoming the second indigenous stockbroking firm to operate on the Exchange. Today, Nigeria has over 100 indigenous stockbroking firms.

Otunba Ajayi also played a key role in the transformation of the Nigerian Institute of Stockbrokers Incorporated into the Chartered Institute of Stockbrokers (CIS). He led a delegation of stockbrokers to engage President Ibrahim Babangida during the campaign for the institute’s charter, which ultimately resulted in the enactment of Act 105 of 1992.

Before independence and in the early post-colonial era, Nigeria’s capital market was heavily controlled by foreign firms that primarily served colonial commercial interests. Nigerians had limited access to investment opportunities, while local businesses faced significant challenges in raising capital. In that context, the emergence of indigenous financial institutions like FTC marked a revolutionary step toward financial inclusion and economic self-determination.

The Company distinguished itself not only as a Nigerian-owned enterprise but also through its commitment to professionalism, investor education, and active market participation. It demonstrated that Nigerians could successfully manage sophisticated financial operations such as stockbroking, investment advisory services, and capital mobilisation. This helped challenge the perception that complex financial services were the exclusive domain of foreign experts.

The company also helped build confidence among local investors who previously saw the stock market as foreign, distant, or elitist. Through its operations, FTC demystified stock trading for ordinary Nigerians, encouraging broader participation in equity investment and promoting a culture of wealth creation through share ownership. In doing so, it contributed significantly to the democratisation of financial opportunities.

Perhaps one of its most enduring impacts was the pathway it created for subsequent indigenous stockbroking firms. Its success provided proof that Nigerian-owned firms could compete effectively if grounded in integrity, competence, and strategic vision. This encouraged a new generation of indigenous financial professionals who went on to become key players in the sector.

Financial Trust Company also contributed to the localisation of Nigeria’s stockbroking industry. It challenged the dominance of foreign firms and supported the development of local expertise in securities trading and investment management. As more indigenous firms emerged, competition increased, improving service delivery, expanding market access, and broadening investor participation across the capital market.

Another important contribution of FTC was its role in strengthening professional standards within the emerging industry. At the time, indigenous firms faced skepticism regarding their capacity to uphold transparency and discipline. However, FTC and similar firms prioritised ethical practices and corporate governance, helping to build trust in local institutions and attract investor confidence.

Its emergence also aligned with Nigeria’s broader post-independence economic objectives, which emphasized indigenous participation in key sectors. FTC therefore functioned not only as a commercial entity but also as an instrument of national economic development, enabling Nigerians to access capital markets and participate more actively in wealth creation.

The ripple effects of its pioneering role remain evident in Nigeria’s financial sector today. Many indigenous stockbroking firms built upon the foundations laid by early pioneers like FTC, contributing to the growth of the Nigerian Exchange and the wider capital market ecosystem.

In retrospect, Financial Trust Company represents a defining chapter in Nigeria’s financial history. It marked the beginning of indigenous participation in the capital market and demonstrated that Nigerians could shape sophisticated financial systems. More importantly, it inspired the rise of indigenous firms that transformed investment culture and capital formation in the country.

As Nigeria continues to pursue economic diversification and financial inclusion, the legacy of FTC remains significant. Its pioneering efforts underscore how institutions that challenge existing structures can create lasting national impact and expand opportunities for local participation in economic development.

Oni, an Integrated Communications Strategist, Chartered Stockbroker, Commodities Broker and Capital Market Registrar, is the Chief Executive Officer of Sofunix Investment and Communications