Members of the Nigerian Stock Exchange (NSE), who are mostly stockbrokers, yesterday urged the Council of the NSE to embark on more consultations before the demutualisation of the exchange. The brokers made the call at the 55th annual general meeting (AGM) of the exchange in Lagos. They also said after the consultations, an extra-ordinary general meeting (EGM) should be convened where the council and management of the NSE will be authorised to commence the demutualisation process. The demutualisation is expected to positively transform the NSE.
Speaking at the AGM, the President of Council of NSE, Mr. Aigboje Aig- Imoukhuede, noted that the exchange weathered the impact of capital flight shocks experienced globally through effective fiscal discipline and tight budgetary controls.
He said: “Although 2015 was characterised by recessionary pressures including a slump in crude oil price, uncertainty in Nigerian economic policies and significant local currency exchange rate pressures, our management and staff successfully delivered on a number of ambitious operational and strategic initiatives. We recorded an operating surplus of N1.86 billion as a result of management diligence in managing the budget as well as strategic prioritisation and execution of key initiatives based on efficiency, scale and growth potential.”
According to him, total assets of the exchange grew by over 10 per cent , while net assets grew by 11 per cent.
“By the end of year, the exchange asset base exceeded N22.78 billion, with N19.29 billion in accumulated funds, providing us adequate financial flexibility to support strategy execution in key business areas for the road ahead,” he added.
Also speaking at the meeting, the Chief Executive Officer of the NSE, Mr. Oscar Onyema resilience during the year amidst prolonged economic uncertainty, diminishing commodity prices and volatile securities markets.
“Despite declines in our core income streams, alternative sources of income continued to play an important role in supporting the financial performance of our business. In 2015, revenue excluding transaction fees and listing income, grew by 15 per cent contributing 40 per cent to total revenue. The greatest drivers of this growth were revenues from our proactive investment strategy and income generated from our market services business,” he said.
Looking forward, Onyema said the goal of the NSE is to reinforce its business take advantage of fluctuations in market cycles.
“To this end, we will be intensifying our efforts to demutualise and to develop the necessary infrastructure and frameworks to launch derivative products in our market. We believe demutualisation will strengthen the exchange’s operational agility and aptitude,” he said.