NSE meets CEOs of quoted companies

The Nigerian Stock Exchange on Tuesday held a "town hall" meeting with the chief executive officers of quoted companies "to provide an interactive session that would strengthen their partnership."

Ndi Okereke-Onyiuke, Director General and CEO of the Nigerian Stock Exchange, in her welcome address said the session was conveyed to harmonize positions on how to take advantage of the global recession.

She said: "The primary goal of this meeting is not to apportion blames but to harmonize our collective thoughts on how the market can sustain its competitive edge, and how to take advantage of the global market downturn."

Mrs. Okereke-Onyiuke said that the capital market has experienced a prolonged bearish trend that arose from the plunging of the global market. "Our market is no longer cocooned from the world. We are fully internationalised," she said.

She added that some government policies such as the Central Bank of Nigeria's directive on Common Year End for banks contributed to the challenges facing the market.

The chief executives who came in their numbers, directed their various questions to the Director General who was in company of her team, including Lance Musa Elakama, assistant director general; Onyewuchi Asinobi, managing director, Central Securities Clearing System; Binos Yaroe, general manager, the Nigerian Stock Exchange's Market Operation and Information Technology; Kene Okafor, general manager of the Nigerian Stock Exchange's Quotation and Listing.

Virgina Nwakwo, representative from May and Baker Nigeria Plc, said during the session that she read in a newspaper that the Nigerian Stock Exchange wants interim financial reports to be audited before submission. But Mrs. Okereke-Onyiuke replied that the information was not true as the Exchange only require the submission of audited full year result.

Mr. Adesina, an official from BOC Gases Plc, challenged the director general to make public and punish anyone found guilty of "insider abuse", while Michael Oladipo Daramola, chief executive officer of International Breweries Plc admonished the Stock Exchange to be proactive in its plan.

On the question asked concerning the true state of banks' margin loan exposure to the capital market, Mrs. Okereke-Onyiuke said that the "total margin loan of banks, according to the statistics available was ₦300 billion."

However, she said that banks loan worth over ₦700 billion are trapped in the hands of some real estate agents, individuals, and private companies that are proposing to be listed at the Exchange.

Meanwhile, Onyewuchi Asinobi has encouraged the chief executives to comply with the CSCS share dematerialization process. He explained that share dematerialization is the process of converting share certificates to electronic share lodgment and allotments.

"The process is to further enhance the efficiency and transparency of the capital market," Mr. Asinobi said.

He added that the new approach to share allotment will save investors the time and money wasted in replacing lost or destroyed paper certificates.

The electronic system, he said, eliminates the cost of maintaining a vault to keep certificates, and also influences reduction of stock transaction cost thereby giving more value to investor.

The CSCS has dematerialised 10.5 million share certificates since it commences operation in 1997.