Wednesday, March 18, 2020 / 9:30 AM /
Nifemi Taiyese for WebTV / Header Image Credit: WebTV
The planned demutualization of the Nigeria Stock Exchange (NSE) will unlock opportunities for the Nigerian capital market according to Mr. Patrick Ezeagu, President of the Association of Securities Dealing Members Houses of Nigeria, ASHON.
Ezeagu argued that demutualization would ensure that the Exchange would operate without obstacles and hindrances, as an organization. He noted that the NSE would transit from a company limited by guarantee of trading members to one limited by the shares of equity holders.
"The fact is that now the Exchange can access capital to expand its programs, and ensure it can compete effectively. It can expand, operate and declare profits that would eventually be available for taxes that benefit the government and the citizenry" he said.
The ASHON President agreed with the notion that it would change the dynamics for dealing members on the Exchange, who would operate at the highest global standards.
He was optimistic that the demutualized NSE would attract more investments which would improve liquidity and deepen the market.
Looking at the prospects of possible mergers amongst dealing firms, he did not rule out such possibilities and noted it would help to reposition the Exchange.
The NSE would join the ranks of the Johannesburg Stock Exchange (JSE), Casablanca Stock Exchange and even Rwanda Stock Exchange that are demutualized.