Date Published: 08/07/09

Dangote wins President of NSE

Aliko Dangote

After weeks of intrigue and intense lobbying, the council of the Nigerian Stock exchange (NSE) Thursday named Aliko Dangote as its 17th president . He was elected via a unanimous endorsement by members at the council meeting which was preceded by annual general meeting. The council also elected Alabo Abbey Hart as the first vice president while Erastus Akingbola, group chief executive of Intercontinental Bank Plc was elected as the second vice president.

The NSE director general, Ndi Okereke-Onyiuke, while announcing the result of the election, said this was the second time in the 49 year history of the NSE that a president would be appointed unanimously. Odumegwu Ojukwu, the first indigenous president of the NSE, then known as Lagos Stock Exchange, was also elected by unanimous endorsement in 1963.

Mrs. Okereke-Onyiuke said the NSE has not abandoned the idea of demutualisation as the council would soon embark on public enlightenment in order for more Nigerians to be able to participate in the project. After the demutualization, the shares of the NSE would be listed on the daily official list. According to Mrs. Okereke-Onyiuke, the management of the NSE , the Securities and Exchange Commission, and the Central Securities Clearing System would meet to work out modalities for the transfer.

“When it will be done, there would be limitation on ownership to ensure that no individual or group hijack it. It will be done with transparency and integrity,” she said.

Speaking after the election Mr. Dangote said he would work for the growth and development of the stock exchange, insisting that the Nigerian stock market was still strong despite developments in the global stock markets.

“I am sure this market will rebound because about 95 per cent of our companies are doing well. What we need to do is create liquidity and improve confidence in the market. This market belongs to all of us so we all need to work together to grow the market,” he said.

Mr. Dangote said his tenure as the NSE president would focus on five key elements: transparency and improved governance of the market; improving the liquidity, turnover and size of the market; enhancing market efficiency by ensuring clearer and updated rules, processes and procedures; provision of world class infrastructure and technology for our market; as well as massive capacity building and rapid skill enhancement of the staff of the Stock Exchange and investor education.

“Our surveillance, compliance and enforcement units will be further strengthened to ensure that they operate optimally. We will update our corporate governance rules not only for our listed companies but also for operators and the Council itself because charity must begin at home,” he said.

There had been in-fighting over the eligibility of Mr. Dangote for the position. This was a fallout of the controversy surrounding his alleged involvement in the African Petroleum Plc price manipulation scandal. Event though the NSE council and the House of Representatives Committee on capital market exonerated Mr. Dangote, some aggrieved shareholders of AP filed a suit at a Lagos court challenging his suitability for the position. The case which came up for hearing on Tuesday was adjourned until August 11, 2009.

The NSE rule provides that the first vice president automatically takes over as president at the end of the three year tenure of the incumbent.

The outgone president, Oba Otudeko in his valedictory speech said the capital market has undertaken transformation that has elevated it to the next level. He said the NSE market capitalization which opened the year at ₦9.56 trillion closed August 5, 2009 at ₦8.43 trillion due to excess supply over demand.