Financial Intermediation: Operations and Practice

FINANCIAL INTERMEDIATION: OPERATIONS AND PRACTICE - A GUIDEBOOK FOR FINANCIAL MARKET OPERATORS AND PRACTITIONERS

By 

Seye Adetunmbi

An extract from the Foreword of the book, - Atedo N. A. Peterside CON

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“The very detailed book by Seye Adetunmbi is a Collector's item for those interested in the broad history of financial intermediation and detailed history of the Nigerian capital market. The book is also a text book because it delves into theory and practice. Not often that one finds history, theory and practice rolled into one. The theoretical underpinnings of various financial instruments are revealed and discussed effortlessly and day-to-day practices are rolled in from an experienced practitioner's point of view. The book is clearly a practitioner's guide, as it is replete with practical titbits that are difficult to find even in the most detailed manuals or templates of active capital market operators. A practical guidebook and a reference manual that contains phenomenal details that practitioner's do not need to memorise. They only need to know where to find such information when needed.

    The author's capacity for meticulous details shines through most of the paragraphs. The book is a compendium of past landmark articles and presentations by the author who has addressed various types of audiences across Africa. The book ends with titbits from Nigerian capital market operators in conversation on various controversial or topical matters. The contributions reveal the complexity of problems faced by operators and challenges thrown up by the economy through periods as diverse as the 2008 global financial crisis to later oil boom years and then to lean years ushered in by collapsed oil and commodity prices.

    All in all, the book will feed a variety of appetites. There is something in there for a diverse audience comprised of students, historians, academics, practitioners including both capital market operators and the clients that they serve, be they issuers or investors in securities.” 

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At the public presentation of the guidebook to the public on July 21st 2020, the Chairman of the book presentation, Dr. Alimi Abdul-Razaq, Chairman, Forte Upstream praised the author’s brilliant service to humanity in his opening remarks. He said: “The collage of pictures in the book brought back the memory of the capital market which I used to be part of and still a part of; the book shows how the market has grown and tries to establish pathways to the future. He remarked further: “The zoom presentation of the book was unique as the first online book presentation in our clime though the author is not a first-time publisher.”

The book reviewer, Bola Ajomale, Managing Director of National Association of Securities Dealers PLC described the book as a fantastic work on operational works in financial intermediation. “It is an excellently punctuated book, a great work in academic exercise and would be a wonderful addition to anyone’s library.” 

The investment banking guru and Chairman of ANAP Foundation, Atedo Peterside, wrote the foreword of the book. He commented thus: “Seye comes across to me as a perfect gentleman. I am glad I wrote the foreword to the book which I read in-to-to. It is a combination of theory, practice and history of the capital market. I commend him for having the courage and commitment to doing this. I am proud to be associated with the book”.

The Financial Intermediation Guidebook is Timely - Arunmah Oteh

In her distinct commentary during the zoom presentation of the book to the public on July 21, 2018, Ms. Arunmah Oteh, an academic scholar at Oxford University and onetime Director-General of Securities and Exchange in Nigeria, said:

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“I am delighted to join you from Oxford today, thanks to technology. I must say that it is a timely book, coming out post the unprecedented global crisis. The crisis has turned back the hand of the clock on the global economy, on the African economy and on the Nigerian economy. With the extreme level of poverty in Nigeria and steep decline in 2020 in oil prices, it is no longer tenable for Nigeria to depend on fossil fuel for export revenue and its well-being. Especially because, our greatest resource is our people and the unique enterprise experience, and of course it is the capital market that unleashes this. Therefore, effort to diversify the economy has to be accelerated with a sense of urgency. The book will enable regulators, market participants, issuers, investors - retail and institutional to understand better the jewels and gems of the market. I believe that a vibrant domestic capital market will be at the epicenter for any nation that wants to build forward together. Nigeria must look for more innovative ways to generate resources for building forward together. The domestic capital market provides patient capital so that we can expand businesses, create new businesses and create jobs. It is also good for good governance, for meritocracy and appropriate capital allocation. I am absolutely excited by what this book will do for us and financial intermediation, because it can help to truly unleash the potential of our market. It is a book written by a veteran investment banker and stockbroker who understands the

Nigerian economy from his wealth of experience garnered in the several positions he has held. I like the fact that he is a candid commentator on the Nigerian economy. He is the convener of the Capital Market Roundtable in Nigeria. In his humble's way, he talked about learning from others, but he has actually thought a lot of people over the years. I appreciate the author for talking about about democratisation of the Nigerian economy for the participation of an average Nigerian. The book will help retail investors to know what to look for in financial intermediaries, how to invest in the market and know their rights. As I have always said, the first line of defense for any investor is the investor’s knowledge; this is the most important risk management tool. The book also gives international investors a primer on Nigerian capital market and offers wise nuggets that will enable them to identify great opportunities that Nigeria has to offer. The author, Chief Seye Adetunmbi is a role model worthy of emulation for his humility, sense of community and his involvement in the church as evidenced in the way he has been honoured. I must appreciate his wife, Mrs Olabowale Adetunmbi, a distinguished lawyer and other family members for allowing the Nigerian capital to share him with you. Let me thank you for your service to the nation through the capital market, also through your writings that extend beyond the capital market; it covers culture, Nigerian economy, history and politics; you illuminate Nigeria for people within and outside world to appreciate. I look forward to a nation and society that will continue to benefit from your intellect and commitment to showcasing Nigerian capital market in Nigeria and Africa.”

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“I am really impressed with what I have read in the book, it is a major contribution to the capital market Nigeria. I particularly like the section on securitisation because we have a lot of huge assets that can be securitized.” – Lamido Yuguda, Director-General of SEC, 21/7/2020
    “The book will fill a lot of vacuums that exist when we talk of the capital market in Nigeria. Very apt that such experiences are documented in a book that many generations yet unborn will yet meet and find useful” - Oscar Onyema, Group CEO, Nigerian Stock Exchange, 21/7/2020
    “It is an excellently punctuated book, a great work in academic exercise and would be a wonderful addition to anyone’s library.”- Bola Ajomale, Managing Director of National Association of Securities Dealers PLC, 21/7/20

    Chief Oladele Fajemirokun, a distinguished entrepreneur said: “The book displays arrays of historical and empirical knowledge about the Nigeria securities markets. A number of activities I participated in and I still participate. I congratulate ‘Seye and urge him to commence work on the sequel. I am delighted to present and recommend this book to practitioners, investors and students”.

In his remarks

    Senator Ibikunle Amosun the Chairman of the Senate Committee on Capital Market and one of the lead presenters for book said: “There is a problem in a nation where politicians are richer than the investors. If Nigeria is going to get it right as a nation, our capital market must be robust. This is why this kind of a unique book is the way to go and that the senate will always encourage initiatives like this.”

    “The book is a useful compendium for financial market operators, capital market professionals, and university students. It will also serve investors, portfolio managers, college professors, and government functionaries in the pursuit of financial knowledge and understanding.” - Tayo Shenbanjo, Licensed Financial Advisor, USA, 3/7/2020.

    "This is very good. It's like a reference manual, textbook and personal account rolled into one. It may easily pass as a "Guide to Investment Banking in Nigeria. Kudos!!” - Bolade Oyebolu FCA

    “Another excellent and detailed book by Seye Adetunmbi. The book is good as a practitioner's guide and also as reference manual. A well researched book to satisfy other professionals in the capital market. Well done” - Otunba Akin Osiyemi

    "It is indeed a book on the theory and practice of Financial Intermediation with special reference to Nigeria. Full of practical examples and relevant historical details, it will be a useful handbook for students and experienced operators of the financial market" - Banji Ogungbemi

    Dr. U. J. Itsueli, Chairman of Dubril Oil Limited and President of the Old Students Association of Christ School, Ado-Ekiti said: "I find the book very appropriate, it is a useful guide for navigating the market as a non-operator. The collage of pictures in it brings a lot of nostalgia. I congratulate Seye and I must say that I expect no less from him being an alumnus of Christ’s School".

    Charles Iyore is quoted thus: “Congratulations Seye for demonstrating again the more important component of a stockbroker. A stockbroker is licensed to deal in securities on third party platforms or exchanges. The most important attribute of the broker, however, is his advisory role, his capacity to advise the investor, individual or corporate, on how to buy and sell securities in other sectors he is unfamiliar with…. If the economy is serious about growth, it must go back to appropriately engaging the broker/advisers, or forever remain in a vortex. While in an advisory role with the Nigerian Stock Exchange, we tried to build the brokers into names, (Seye Adetunmbi Inc. James John Inc.) through road shows and aggressive issuer programmes. That programme of individual incorporation would have been concluded, with our designated broker programme as a continuing in-plant programme for listed companies. There were diversions at the end and those errors have now come home to roost, with a capital market unable to drive economic growth. Seye, you have always demonstrated the ability to think outside the box, and this book is a testimony to your continuous and independent market analysis.”

The book (e-book/paperback/hardcover) is available in Amazon through this link https://www.amazon.com/dp/B08BNFHWN1/ref=nodl_