The National Council of the Nigerian Stock Exchange (NSE) has named the chief executive officers (CEOs) for the operating and non-operating companies that will emerge from its demutualisation process.
Under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group Plc (NGXG), has been created.
It will have three operating subsidiaries – Nigerian Exchange Limited (NGX), which will be the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulatory arm; and NGX Real Estate Limited (NGX RELCO), the real estate company.
Preparatory to the completion of the exercise, the council has announced the current CEO of the NSE, Mr. Oscar Onyema as the Group CEO of the NGXG; Mr. Temi Popoola, who is currently the Managing Director of Renaissance Capital, as the CEO of NGX, while Ms Tinu Awe, who is currently the Executive Director, Regulation of NSE, will become the CEO of NGXREGCO.
Members of the NSE had last March unanimously approved its demutualisation at a court-ordered meeting subject to the approval of the Securities and Exchange (SEC) of Nigeria. Also, the members at the 59th annual general meeting (AGM) held last November, had approved that the shares of NGXG be listed once the demutualisation process is completed.
Under the resolution passed by the members subject to the receipt of requisite approvals of regulatory authorities, following the conversion and re-registration of NGXG, the group is authorised to undertake a listing by introducing its shares on the stock exchange.
The council said the approval by members had cleared the way for the listing of NGXG and for a new structure to enable the exchange to realise its vision of becoming Africa’s leading exchange hub.
The President of the National Council of the NSE, Mr. Abimbola Ogunbanjo, had said: “The National Council welcomes the strong endorsement by the members of the exchange for our listing plans. On behalf of the Council, we wish to thank the exchange’s management for their outstanding work in the previous year, when they have faced unprecedented challenges such as the Coronavirus pandemic. It is a tribute to their efforts that the exchange has continued to work effectively and at the same time has made significant progress in pursuing its strategic development through listing and other steps.”
On his part, Onyema, said: “We would like to thank the membership of the exchange for their overwhelming support of the listing plans. This marks the beginning of the exchange’s transformation into a listed company with flexibility to raise additional equity and/ or debt capital. It is our aim that under this new structure, the Nigerian capital markets will be able to play a role that is commensurate with Nigeria’s status as Africa’s biggest economy. We believe we can become a financial hub for Africa and with the backing of our stakeholders and their continued use of our services this objective can become a reality.”
According to him, the demutualisation of the NSE will bring the Nigerian capital market at par with other international jurisdictions, resulting in enhanced governance, transparency and visibility whilst attracting strategic partners, investors and good quality issuers.
“The demutualisation will lead to an agile exchange thereby consolidating its innovativeness and strengthening its leadership both at local and international levels whilst also adding value to its stakeholders. As a demutualised entity that is profit-seeking, the NSE will be in a better stead to capitalise on new income opportunities, free from any limitations arising from conflicting member interests and existing laws and more importantly be able to better support the economic growth of Nigeria,” Onyema said.