The Demutualisation Bill, which is set to facilitate the development of the Nigeria’s Capital Market has passed the second reading on the floor of the Senate.
The bill is seeking to enable the conversion and re-registration of the Nigerian Stock Exchange (NSE) from a company limited by guarantee to a public company limited by shares and for other related matters.
Acting Chairman, Senate Committee on Capital Market, Senator Foster Ogola (PDP Bayelsa West), who presented the Bill for consideration on Tuesday, said the proposed demutualization of The Exchange was an integral element of the 10-year Capital Markets Master Plan and it underpins the rapid growth that is envisioned over the next decade.
He said the bill, if passed, would result in an increased value of the exchange, enabling it to compete favourably in the global market, open the doors for significant investment into Nigeria and ultimately enhance the nation’s capital market.
“The approval of the demutualization bill will generate substantial motivation for the development of an agile Exchange thereby consolidating its innovativeness and strengthening its leadership both at local and international levels whilst also adding value to its stakeholders,” he said.
“As a demutualized entity that is profit-seeking, the NSE will be in a better stead to capitalize on new income opportunities, free from any limitations arising from conflicting member interests and existing laws and more importantly be able to better support the economic growth of Nigeria.”
Senator Mao Ohuabunwa, (PDP Abia North) while seconding the motion on the Bill, called for expeditious passage, stressing that the demutualization when implemented, would give the Exchange the ability to take a number of strengthening actions, that will promote transparency and increase efficiency in its operations.
The bill, however, enjoyed unanimous support of majority of Senators when Saraki put it to vote. The bill was sent to Senate Committee on Capital Markets for further legislative action. The committee has four weeks to report its findings to the Senate at Plenary.
