Date Published: 03/13/10

Nigeria Stock Exchange Presidency: Court kicks out Aliko Dangote over allegation of AP Share manipulation

A Federal High Court sitting in Lagos on Friday nullified the election of Aliko Dangote as the president and chairman of the Nigerian Stock Exchange (NSE). .

15 shareholders of AP filed a legal action against Mr. Dangote, Nova Finance and Securities Limited and 12 others over an alleged massive manipulation of AP shares. In addition to their originating summons, the applicants urged the court to grant an order of interlocutory injunction.

Accordingly, the shareholders approached the court for an order restraining the NSE and the Securities & Exchange Commission (SEC) from retaining Mr. Dangote as the 1st Vice president and member of the council of the NSE, pending the determination of the suit. They also sought an order restraining Mr. Dangote from remaining the 1st Vice President and member of the council of the NSE.

However, during the proceedings in the suit on 4 August, 2009, the court presided over by Mohammed Liman ordered all parties to maintain status quo pending the hearing of the suit.

Noting that Mr. Liman could not continue in the matter because an allegation of bias was levied against him by the defendants, the suit was transferred to Mr. Lambo, who is now presiding..

 “The government should also look inward for a way to sanction domestically, any government functionaries found in disobedience of the court’s order,” he said. “This is the only way ‘the boys’ and those claiming to be close to power and who are laws unto themselves can be checkmated, so that genuine desire of the present administration to enthrone true and genuine democracy can be attained.”

After the ruling, the matter was adjourned to 16 March 2010, for continuation of the substantive suit filed by the shareholders.

Sunny Nwosu, national coordinator of the Independent Shareholders Association of Nigeria (ISAN), while reaction to the ruling, described the removal of Mr. Dangote as triumph for the rule of law.