Inside the Demutualised Nigeria Exchange

BY Chris Paul

On the cusp of its 60years anniversary of incorporation and trading, The Nigerian Stock Exchange is now restructured via the process of demutualisation, into the Nigerian Exchange Group Plc (NGXGRP). The Group will have three operating subsidiaries, namely: Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent securities regulator for NGX; and NGX Real Estate Limited (NGX RELCO), the real estate company. The structure has been approved by the Securities and Exchange Commission of Nigeria (SEC) and the entities duly registered at the Corporate Affairs Commission (CAC).

Subsequent to this approval, the Group Chairman of NGXGRP, Otunba Abimbola Ogunbanjo, had said: “Successful demutualisation was one of my fundamental objectives when I assumed the Presidency of The Exchange. The SEC’s decision today to approve the NSE’s demutualisation plans brings this aspiration to a successful conclusion in a process that has included the passage of the Demutualisation Act through the National Assembly. We are elated that this milestone has been achieved on the 60th anniversary of the commencement of trading at the Exchange and now look forward to the future public listing of its shares on NGX. On behalf of the NSE, I would like to warmly thank all those that have worked assiduously to achieve this watershed event on our journey to make the NSE a multifaceted exchange that extends across various markets and geographical regions.”

NGX Leadership Team

The imperative of strong leadership to lead the NGX Group appears to have been taken seriously. The erstwhile Chief Executive Officer of former NSE, Oscar Onyema, having completed his 10-year tenure was appointed to as the Group Chief Executive Officer. Onyema joined the former NSE in 2011 in the wake of takeover by SEC Nigeria. Prior to relocating to Nigeria, he served as Senior Vice President and Chief Administrative Officer at American Stock Exchange (Amex). He also ran the NYSE Amex equity business following the merger of NYSE Euronext and Amex in 2008.

In addition, he serves as the Chairman, Central Securities Clearing System (CSCS) Plc, the clearing, settlement and depository for the Nigerian capital markets; and Chairman, NG Clearing, which is in the process of developing a Central Counterparty Clearing House (CCP). In addition, Mr. Onyema is a Board member of the National Pension Commission of Nigeria (PENCOM) and sits on several advisory boards including London Stock Exchange Group (LSEG) Africa Advisory Group (LAAG).

His remarkable achievements have earned him awards such as the Special Recognition Award for transformational leadership in the Nigerian Capital Markets at BusinessDay Top 25 CEOs Award 2018. In 2015 Forbes Magazine named him among the Top 10 Most Powerful Men in Africa. In the preceding year, he received the national honour of Officer of the Order of the Niger (OON) from the federal government.

Mr. Temi Popoola, CFA will helm the affairs at Nigerian Exchange (NGX) Ltd. A Wall Street trained investment banker, Mr. Popoola joins NGX Ltd. from Renaissance Capital (Rencap) where he was Managing Director and CEO for West Africa.

He is a successful C-suite leader whose unique blend of business acumen, financial expertise, global market growth and operational insight has earned him a reputation built on verifiable career achievements. Popoola began his career in London as a portfolio manager focused on African energy markets and worked for several years as a senior equity derivatives trader with Bank of America Securities in New York where he drove firm profitability by providing derivative solutions to US corporations and family offices.

Since his return to Nigeria in 2009, Mr. Popoola has also worked with United Bank of Africa (UBA) as Head of Structured Products for Global markets and with CSL Stockbrokers Ltd. as Head of Sales and Trading. In both of these positions, he guided growth and advancement for investors across global markets, including South Africa, the UK, the Middle east and the US.

Ms. Tinuade Awe was appointed as the Chief Executive Officer, NGX Regulation (NGX REGCO) Ltd. Prior to attaining this position, she was an Executive Director, Regulation at The Exchange. She also served as the General Counsel and Head of the Legal and Regulation Division as well as Council Secretary before becoming an Executive Director. Prior to The Exchange, Ms. Awe worked with the United Nations in The Hague and Geneva as well as the New York offices of global law firm, Simpson Thacher & Barlett and Banwo & Ighodalo in Lagos, Nigeria.

As Executive Director, Regulation, she had responsibility for the regulation of the two primary stakeholder groups of The Exchange, i.e., the Dealing Members that trade on The Exchange and issuers that have securities listed on The Exchange. Her team was responsible for rule making and interpretation, monitoring, inspections, market surveillance, investigations, regulatory technology, and enforcement.

She is a non-executive director of the Central Securities Clearing System Plc (CSCS). She is also a member of the Board of the Financial Reporting Council of Nigeria (FRC). She Chairs the FRC’s Board Corporate Governance Committee, which has Board level responsibility to monitor implementation of the National Code of Corporate Governance (NCCG). Among other professional pursuits, Ms. Awe was a member of the Nigerian Senate’s Technical Advisory Committee to review the Bill for an Act to Amend the Companies and Allied Matters Act and the Bill for an Act to review the Investment and Securities Act.

The Future

The recent launch of a new brand identity and website recently by the NGX Group underscores its intention to become the preferred exchange hub in Africa as captured in its vision.

The Group Chief Executive Officer, NGX Group, Mr. Oscar N. Onyema, OON sums this up eloquently by saying, “We are very excited about the launch of our new brand identity and website at this pivotal time in our history. Influenced by the dynamism and resilience of our market in both good and challenging times, our new identity, which builds on our rich heritage, reflects who we are today, our ambitions for the future, and our resolve to deliver superior value to our stakeholders. As we step into the NGX era, we remain committed to achieving the highest level of competitiveness, both in African and global capital markets.”