NSE Demutualization 80 % complet – Onyema
Against all odds, completion of the demutualization process of the Nigerian Stock Exchange(NSE) will take about 12 months.
This was coming as the NSE’s President, Aigboje Aig-Imoukhuede, council member, Aliko Dangote and seven other members have served full tenures and retired.
The Chief executive officer Nigerian Stock Exchange (NSE) Mr. Oscar Onyema, revealed the progress made in the demutualization process, in an interview shortly after the NSE’s 56th Annual General Meeting in Lagos, saying that it has set the exchange on the path of greater work on transforming the Exchange to a publicly quoted company. He said that this had been done; and that only 20 per cent of the job is yet to be accomplished.
This was acknowledged by the outgone president of the NSE council, Aig-Imoukhuede, earlier in an interview when he said, “demutualization of the Exchange is my greatest achievement as the council’s president.”
Meanwhile, Daily Times recalls that the National Council of the NSE met in April 2016 and discussed The Exchange’s strategy to address the regulatory, political and other Issues that could affect the Demutualization exercise, amongst other agenda items.
The Demutualization committee report according the NSE’s 2016 financial statement during the year under consideration, examined and made recommendations to the National Council regarding the present structure of The Exchange and, in that context, examining and determining the appropriate response(s) to legal, regulatory, financial, and legacy issues pertinent to the demutualization of The Exchange.
The Demutualization committee also reviewed regulatory framework, including self-regulatory organization status, shareholding criteria, and trading rights; as well as identified effective ways to deal with issues relating to the legitimate interests of all stakeholders and made recommendations to the National Council.
The committee, it will be recalled, had earlier met with the NSE’s governance committee and extensively considered the, the Legal and Tax Due Diligence Reports, the Legal Advisers’ Memorandum of Advice on Membership Rights in The Exchange; and members Register Analysis Preliminary Report.
Mr. Abimbola Ogunbanjo, the former second vice president, having assumed the position of the first vice president of the council is expected to assume the position of
President Council of the Exchange.
Members of the Exchange re-elected Ogunbanjo, who retired by rotation, as a member of the National Council.
The members also elected Chartwell Securities Limited (Represented by Mr. Oluwole Adeosun); Equity Capital Solutions Limited (Represented by Mr. Kamarudeen Oladosu); Fortress Capital Limited (Represented by Mr. Yomi Adeyemi); Pilot Securities Limited (Represented by Mr. Seyi Osunkeye);
Planet Capital Limited (Represented by Mr. Chidi Agbapu); Woodland Capital Markets Plc (Represented by Mr. Patrick Ajayi); Katsina State Investment & Property Development Co. Limited ,represented by Mrs. Fatimah Bintah Bello–Ismail); Mrs. Catherine Nwakaego Echeozo and Erelu Angela Adebayo as members of the National Council.
Earlier in his address, President of the National Council of the NSE, Aig-Imoukhuede, stated that “despite the economic headwinds in 2016, the Group level of the NSE remained profitable with an operating surplus of N27.45 million.
The Exchange generated revenues of N4.46 billion, down 31% from the previous year, reflecting bearish sentiments prevalent in the market in 2016”. Aig-Imoukhuede commended the Council and Management of the Exchange for their cost containment efforts and their diligent approach to budgeting, which saw total expenses decline by 12% year-on-year without affecting The Exchange’s high operating standards and service quality.
According to the Chief Executive Officer of NSE, Onyema, the NSE demonstrated resilience through the economic and market downturn as investors reacted to prolonged macro-economic uncertainty. “As at December 31 2016, the NSE’s total assets stood at N22.79billion, with approximately N9.73bn (43%) held in liquid assets and an accumulated fund of N19.31bn, to close the year with a sound liquidity position and strong balance sheet.”
“The Exchange has delivered strong and broad-based results which strengthen our foundation for long-term prosperity, and will drive growth in the near-term. We will continue to adapt to stakeholder needs in the evolving business climate, developing innovative and diverse products that perform well in different market conditions, while maintaining a regulatory framework that engenders confident investors”, Onyema added.
Bonny Amadi
