Tanko Mohammed
Mrs Zainab Ahmed, Minister of Finance on Tuesday, has said that the successful demutualisation of the Nigerian Exchange (NGX) Group would help to transform Nigeria’s social and financial status.
Ahmed made the remarks at the virtual launch of the “Stock Africa is Made” campaign by the NGX in Lagos.
According to the minister, the demutualisation will affect the capital market as well as the domestic economy.
“It is expected to deepen the investor base of the exchange as it unlocks opportunities for domestic and institutional investors to realise significant economic value by bringing the capital market in line with prevalent international practice and standards.
“I am particularly delighted to see this milestone achieved as I believe that demutualisation will help facilitate enough capital to help FG’s initiatives and infrastructure projects.
“It will also assist corporates and financial institutions in raising capital while allowing the exchange better position itself for the listing of big and large multinational organisations in Nigeria.
“It is a laudable and progressive reform that stands to transform the social, economic and financial fabric of our country,” she said.
Speaking on the effects of the pandemic, Ahmed said: COVID-19 has struck the economic foundation of moat countries across the globe and decreased economic activities on a scale that is comparable to the 2008 global financial crisis.
“Nigeria has been forced to adjust its comparatively optimistic economic focus due to the economic impact of the COVID-19. It is crucial that we work together with our partners to build a resilient Nigeria in the face of significant long-term challenges and uncertainties.
“Recent months have taught us that we need to equip ourselves with the means to tackle whatever challenges may arise while keeping an eye on early warning signs of the arising.
“This is what resilience is all about, anticipating, exploring and ultimately, acting in a manner that is more collaborating.
“The demutualisation exercise is expected to produce a new non-operating holding company with three operating subsidiaries. It is worth noting that the demutualisation of the exchange is the first in Nigeria,” she noted.
She also states that the landmark transaction also generated intense global interest, which was critical to the development of the Nigerian capital market.
“It will help the exchange gain new strategic partnerships, achieve capital raising credibility and improve its operational efficiencies with the view to accomplishing it’s vision of being Africa’s leading capital market infrastructure provider.
The minister of Trade and Investment, Otunba Adeniyi Adebayo, said that the demutualisation will strategically position the exchange to the global trading environment.
Adebayo said that the transformation from a member ownership to a PLC would allow businesses to engage in more strategic partnerships, which would significantly impact the capital market.
Otunba Abimbola Ogunbanjo, Chairman, NGX Group in his remarks said that the Group wold be better positioned to enable strong economic growth, while contributing it’s quota to the development if the Nigerian capital market.
Ogunbanjo sais: “With demutualisation the NGX Group will be well positioned to enable strong economic growth and contribute it’s quota to the development if the Nigerian capital market.
“There are series of opportunities available through demutualisation which include, strengthened corporate governance framework, increased liquidity, expansion of ownership base thereby diversifying ownership risks and increases investor participation.
“It will also help to achieve the NGX group objective to be Africa’s preferred exchange hub.
“The stock Africa is made of, is the unveiling event of the Nigerian exchange Group Plc.
“The story behind it is one that illustrates the uniqueness of Africa and the beauty and prise of our people who will continue to rise and take their place in the global economic order.
“Our story is one birth from resilience, collaboration, determination and continued focus on our mission,” he said.
Ogunbanjo recounted some of the challenges the exchange faces in the past, stating that as part of the transformation initiative, the leadership decided to proceed with its long term objective of demutualisation to convert it’s corporate structure to a company that is shareholder based and profit seeking.
Mr Oscar Onyema, the Group Chief Executive Officer, NGX Group said that the new brand was capable of facilitating the formation of any new subsidiary by leveraging brand entity.
Onyema said: “The NGX brand identity follows the holistic brand architecture which will facilitate the formation of any new subsidiary by leveraging brand entity.
“The NGX brand is deeply rooted in dive principles, vision, aiming to be a leading force in customer experience creating loyal and delighted clients and stakeholders
“It is our vision to be the premier exchange hub for Nigerian businesses and for the wiser African economy.
“We believe the Nigerian capital market show play a role commensurate with Nigeria’s status as Africa’s largest economy.
“To this end we are implementing a series of measures towards this goal. The opportunities in this era are limitless; the NGX era is heralded by our new identity,” Onyema noted.
The campaign which had in attendance the chief executives of multinationals in the like of Alhaji Dangote, Mr Jim Ovia, Tony Elumelu among other big wigs commended the exchange for the feats and expressed optimism in it’s transformation to becoming Africa’s exchange hub.
The virtual launch, which had musical performances from Innocent “2face” Idibia and Chike, also had international players in the global capital market space sending their goodwill messages.
