CBN, SEC, oth­ers back de­mu­tu­al­iza­tion of NSE

Daily Trust - - BUSINESS - By Is­mail Mu­dashir & Musa Ab­dul­lahi Kr­ishi

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.

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