Aliko Dangote - 1 Year in Charge of the NSE Presidency

Proshare

Wednesday, 19 June 2013 / Proshare Research

 

It seems that no matter what anyone says about the Nigerian Stock Exchange these days, the conversation inevitably comes around to their President - Alhaji Aliko Dangote; President of Dangote Industries, owners of the most capped stock on the Nigerian bourse. And, when the topic involves Aliko Dangote, extremes do abound for varying reasons.

 

Regardless of whether the opinions come from an appreciative segment of the investing public or other stakeholders in the economy, nay capital market however; the praise and criticism is always followed by a common affirmation – the acknowledgment that we are moving forward as a market; and that we are set on the right trajectory for recovery and sustainable growth.

 

For a market that went through many cycles post 2008; the current calm, stability and impressive rallies witnessed on the Nigerian bourse in the last one year has been as much a validation of the actions taken by capital and monetary regulators in 2009 and 2010; actions of which not a few took issues and exceptions to/with.

 

The measure of the recovery witnessed thus far provides for us all a teachable moment as the recovery was not driven on the back of new listings, and if the listings by introduction is backed out along with the rally experienced in the Building Material and FMCG’s sector; the gap in the depth of the market is laid bare.

 

Yet for all the deserved credit extended to the current managers and council, the market acknowledges the foundation laying work done by the SEC appointed Emmanuel Ikhazoboh led Interim Management; which established the enablers that created the conditions for a sustainable recovery.

 

Whilst the purpose of this report is to capture the developments in the market since the enthronement of the Council for the Nigerian Stock Exchange; under a mandate to deliver a world class bourse based on sound practices and governance ethos; it appeared worthwhile to take a step back to understand how the journey before the June 19, 2012 inauguration of the council impacted on the change in the bourse’s fortunes. Section 3 of this review attempts a brief summary for the records.

 

Instructively, and as we showed in section 4 of the report, the developments at the NSE thus far closely correlates with the five-point agenda set out by Aliko Dangote in his 2009 presidency address to the Council. In section 5, we take a detailed approach at this agenda, and compare same with his 2012 agenda to isolate what had changed in market realities, if only to properly situate the fact that the market had bottomed-out by year-end 2011.

 

Fact is, the office of the President of the Council of the NSE could not have wished for a better and higher profile than it got in Aliko Dangote, whom perhaps realising the nexus between his growing international profile and that of his business concerns; threw himself into the job and the key concerns it needed to resolve in building the exchange into a world class institution Nigeria deserves; and invariably, his profile requires.     

 

Today’s Nigerian Stock Exchange under the leadership of Oscar Onyeama and his team is beyond comparison to the past; the locus of operation has been altered permanently and even as it prepares to take on current and future challenges; the outlook we captured in sector 6 provides a validating attestation to a new bourse ready to take on the challenges of first rate investment destination of choice.

 

In the final analysis, what we can take away from the review is that the return of Aliko Dangote to the council of the NSE as established a renewed hope in the corresponding rally leading to the stability and certainty in the market.

 

The fulfilled promises by the president to increase the number of dealing members on the council, the execution of imperatives of growth; all based on a brand new era of compliance, enforcement, transparency and good governance principles; upon which the market has benefited.

 

Download Full Report HERE

 

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