CBN, SEC, others back demutualization of NSE

The Central Bank of Nigeria and other major players in the Nigerian economy have supported the move to demutualize the Nigerian Stock Exchange from a company limited by guarantee to that limited by shares.

Speaking during a joint public hearing by the Senate and House of Representatives committees on capital market in Abuja, CBN Governor Godwin Emefiele, said demutualizing the NSE would not only boost Nigerian economy but would also make the NSE to be among the 56 countries that have demutualized.

Represented by an official of the CBN legal department, Adedeji Lawal, the apex bank’s chief said the action would augment Nigeria’s debt profile and attract more foreign and domestic investments.

Similarly, the Chief Executive Officer of the NSE, Oscar Onyeama, said when passed into law, the bill would allow the capital market to witness unprecedented growth and development.

He said some of the benefits of action include improved corporate governance, increased resources for capital investment and increase in global brand and visibility of the NSE.

Officials from the Federal Ministry of Finance, Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), Association of Stockbroking Houses in Nigeria, Chartered Institute of Stockbrokers Investments and Securities Tribunal, among others also endorsed the bill.

Earlier while declaring the event open, Senate President Bukola Saraki, who was represented by Senate Deputy Whip, Sen Francis Alimikhena (APC, Edo) said since the establishment of the Nigeria Stock Exchange (NSE) in 1960, it has been rendering positive contributions to the growth of the nation’s economy, which is why demutualization at this time would be for the betterment of the country.

He said if the bill is passed into law, it would open more opportunities for the economy, urging stakeholders to make useful contributions to ensure a robust discussion and legislation.

On his part, Speaker Yakubu Dogara said the bill was in line with the House resolved to contribute its quota toward the revival of the Nigerian economy.

Represented by Minority Leader, Leo Ogor, the speaker said the House was ready to pass the bill into law.