Aig-Imoukhuede: Stockbrokers Will Meet Recapitalisation Deadline
The President of the Nigerian Stock Exchange (NSE), Mr. Aigboje Aig-Imoukhuede yesterday expressed support for the recapitalisation of market operators, saying stockbroking firms would meet the September 30 deadline.
Aig-Imoukhuede, who spoke to journalists at the 54th annual general meeting (AGM) of the NSE in Lagos, said: “Our view at the NSE is that stronger and more capitalised members, means a better and stronger market. So we are endorsing it wholly. I think the Securities and Exchange Commission (SEC) was very magnanimous in extending the deadline from December 2014 due to the oil price crash and other events of 2014 to give our members a bit more time to get themselves ready for recapitalisation. The nine months extension ends in September, and it is my believe that by then, members of the exchange, broker dealers among others, would have done what is necessary to meet the capital requirement.”
Speaking on the financial performance of the NSE 2014, the president said the exchange recorded impressive growth along key financial indices.
“Total assets grew by over 30 per cent, while net assets grew by 29 per cent, year-on-year. The growth in net assets was driven by a consistent rise in trading revenue and other income. The results were achieved in spite of thinning operating margins and a fourth quarter slowdown in market activity,” he said.
According to him, the exchange recorded an operating surplus of N3.95 billion, representing a significant increase of 21 per cent from 2013, and closed the year with accumulated funds of N17.49 billion. Aig-Imoukhuede said that prior to 2015, efforts were put in place to address strong governance, strong growth framework, cutting edge technology and excellent management team.
He noted that the dealing members and the largely capital market committee are looking towards an exchange that is demutualised, stressing that “it is only when this take place that they can deeply participate in the creation of wealth within the NSE as an economic entity.”