The much talked about demutualization of the Nigerian Stock Exchange (NSE) eventually kicked off.
By a unanimous resolution at a court ordered meeting held at the premises of the Nigerian Stock Exchange (NSE) in Lagos on Tuesday 3rd of March 2020, the 57 shareholders of the NSE decided to demutualize the Exchange. This in effect means that the NSE is changed from a company limited by guarantee to a company limited by shares. Its new name will now be ‘Nigerian Stock Exchange PLC’.
Mr. Abimbola Ogunbanjo, the President of National Council of the Exchange, whilst speaking to the press stated that the demutualization will enhance deepening of the market, it will attract foreign investment amongst many others. The Chief Executive Officer of the NSE, Mr. Oscar Onyema also stated that there are a lot of positives that can come out of the demutualization which will not only be good for the stock market but to the capital market as a whole. He stated that there has been huge concentration on the banking industry and the Exchange can now easily complement the sector.
The NSE has now followed other stock exchanges across the world that has been demutualized like the London Stock Exchange and the New York Stock Exchange.