The conversion of the Nigerian Stock Exchange (NSE) from a not-for-profit limited by guarantee entity into a profit-making, shareholders-owned public limited liability company will enhance transparency at the stock market. The conversion is known technically as demutualisation.
Founding National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said the demutualisation of the 57 years old Exchange will enhance corporate governance and integrity of the disclosures at the Exchange and the overall market.
According to him, conversion will lead to greater level of accountability, efficient use of resources and more inclusive participation by all Nigerians just as we have in other quoted companies.
“So many things are happening; some people may take it to mean that as a non-profit organisation it means you have to finish up all money made, you share it among the people concerned. But when it is demutualised, there will be an account like what was presented to us today. So we can hold on to the managers of the demutualised stock exchange to disclose fully every aspect of their accounts,” Nwosu said.
He said the demutualisation of the Exchange must be done in a way that recognises the historic importance of the Exchange and the role of the Nigerian people, through the government, in the establishment of the Exchange.
He urged the National Assembly to pass the enabling law that will facilitate the demutualisation of the Exchange, noting that the conversion will make the Exchange to be more competitive and to make returns to shareholders by paying dividend.