Following approvals from the Securities Exchange Commission (SEC) and the Corporate Affairs Commission (CAC), the process of demutualisation by the Nigerian Stock Exchange (NSE) has been executed.
Demutualisation, according to IMF is “the transition of a securities exchange from a mutual association of exchange members operating on a not-for-profit basis to a limited liability, for-profit company accountable to shareholders.”
Demutualisation aids the creation of a non-operating holding company – the Nigerian Exchange Group Plc (NGX Group) – empowered to oversee the operations of three subsidiaries including NGX Regulation Limited (NGX REGCO), an independent regulation company; Nigerian Exchange Limited (NGX Limited), serving as the operating exchange, and the NGX Real Estate Limited (NGX RELCO), the real estate arm.
Speaking on the successful demutualisation was the Council President of the NSE, Otunba Abimbola Ogunbanjo, who said, “Successful demutualisation was one of my fundamental objectives when I assumed the presidency of The Exchange.
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“The SEC’s decision today to approve the NSE’s demutualisation plans brings this aspiration to a successful conclusion in a process that included the passage of the Demutualisation Act through the National Assembly.
“We are elated that this milestone has been achieved as we celebrate the 60th anniversary of the commencement of trading at the exchange and now look forward to the future public listing of its shares on NGX Limited.
“On behalf of the NSE, I would like to warmly thank all those that have worked assiduously to achieve this watershed event on our journey to make the NSE a multifaceted exchange that extends across various markets and geographical regions.”
The Chief Executive Officer (CEO) of the NSE, Oscar Onyema, who was appointed as the Group CEO of the NGXG, urged capital markets in the country to “play a role” that is proportionate to Nigeria’s status as the continent’s largest economy.
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Onyema said, ““The Nigerian capital markets should play a role commensurate with Nigeria’s status as Africa’s largest economy.
“At the NSE, we have a vision that the new group will become the premier exchange hub for Nigerian businesses and for the African economy.
“We are implementing a series of measures towards this goal, demutualisation being a critical milestone. The completion of demutualisation is a truly significant moment, and we welcome the new possibilities that have opened up for us today.”
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