SEC Nigeria clears Nigerian Stock Exchange demutualization

Next step in the long demutulization of Nigerian Stock Exchange will be a court ordered meeting and an extraordinary general meeting. The demutualization is set to transform another of Africa’s most dynamic exchanges.

Last month (January 2020)  the bourse received a letter from the Securities and Exchange Commission Nigeria with “no objection” to its planned conversion from a not-for-profit entity limited by guarantee into a profit-making, public limited liability company owned by shareholders.

Oscar Onyema, CEO said (in a press release): “With this consent, the Exchange will proceed quickly to the next phase of holding a Court Ordered Meeting and an Extraordinary General Meeting to pass requisite resolutions including the approval of the draft Constitution; basis of allotment and split of shares between members; approval of new Board of Directors; and approval of new corporate governance and regulatory structures.”

In March 2017 the Members of the Exchange passed resolutions that authorized the Council and Management to proceed with the process. President Muhammadu Buhari signed the Demutualisation of The Nigerian Stock Exchange Bill into law on 29 August 2018, authorizing NSE to convert to a shareholder-owned public company limited by shares.

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