N’Assembly, CBN, NSE, others, give nod
The Federal Government has endorsed the ongoing legislative process by the National Assembly to demutualize the nation’s capital market.
A Bill for an Act to facilitate the development of Nigeria’s capital market by enabling the conversion and re-registration of the Nigerian Stock Exchange from a company limited by guarantee to a public company limited by shares and for other related matters, 2017 ( Senate Bill 531) (otherwise called Demutualization Bill), had scaled second reading in the Senate.
Governor, Central Bank of Nigeria, Mr. Godwin Emefiele, who affirmed the government’s support for the Demutualization Bill said if passed into law, the Bill would bring NSE within the league of 56 out of 64 members of World Federation of Exchanges, which have demutualized.
Emefiele, represented by Mr. Adedeji Lawal from Legal Department of the apex banks’ regulator, said the dynamism presented by demutulised exchange would augment Nigeria’s debt profile and capital raising capabilities by providing a number of attractive vehicles for foreign and domestic investors.
He said, both the capital and money markets depend on each other; saying that efforts aimed at improving the operations of the market would invariably make a positive impact on the financial sector.
Chief Executive Officer, NSE, Mr. Oscar Onyeama, who enumerated the benefits of demutualization, said the proposed Bill would facilitate the development of Nigeria’s capital market by enabling the conversion and re-registration of NSE from a company by limited guarantee to a public company limited by shares.
He described the “demutualization of NSE, through the bill as the great game changer the country needs.”
Onyema listed the benefits of demutualization as facilitating development of capital market, improved corporate governance, resources for capital investment and increase global brand and visibility of the exchange, among others.
Also, the Ministry of Finance and the Association of Stock Brokers of Nigeria noted that the proposed demutualization Bill would provide access to global capital market.
Senate President, Dr. Bukola Saraki, who declared the Public Hearing open, described the Bill as one of the instruments the 8th National Assembly hopes to use to stimulate Nigeria’s economic growth.
Saraki was represented at the event by Senate Deputy Whip, Senator Francis Alimikhena
Also, Speaker of House of Representatives, Rt. Hon. Yakubu Dogara, who spoke through the Minority Leader, Hon. Leo Ogor, pledged the commitment and total support of the National Assembly for the bill which he said, would scale up the efficiency of the NSE.
In his remarks, the Chairman, Senate Committee on Capital Market, Senator Foster Ogolar (PDP Bayelsa West), said, “The Nigerian Stock Exchange plays a major role in the in Nigeria’s financial market and its conversion and re-registration into a public company by shares is essential to develop and strengthen the Nigerian capital market.”