Following the stepping down of discussion on the process of full demutualization of the Nigerian Stock Exchange (NSE), at their 55th Annual General Meeting (AGM) in Lagos, members has agreed to NSE Councils proposal to have an Extra-Ordinary General Meeting (EGM) on the demutualization to allow for more consultation.
The suggestion was supported by Emeka Madubuike, President of Association of Stock broking Houses of Nigeria and Mike Itegboje. The speakers further urged the Council and Management of NSE to fast track the demutulaisation process and pick a date for the EGM.
However looking at the financials the Chief Executive Officer Mr Oscar Onyema said “We recorded an operating surplus of N1.86 billion as a result of management diligence in managing the budget as well as strategic prioritization and execution of key initiatives based on efficiency, scale and growth potential. Total assets of The NSE grew by over 10 percent, while net assets grew by 11 percent, year-on-year. By the end of year, the Exchange asset base exceeded N22.78 billion, with N19.29 billion in accumulated funds, providing us adequate financial flexibility to support strategy execution in key business areas for the road ahead” he added.
According to him, the Exchange illustrated its resilience during the year amidst prolonged economic uncertainty, diminishing commodity prices and volatile securities markets. Despite declines in our core income streams, alternative sources of income continued to play an important role in supporting the financial performance of our business. In 2015, revenue excluding transaction fees and listing income, grew by 15 percent contributing 40 percent to total revenue. The greatest drivers of this growth were revenues from our proactive investment strategy and income generated from our market services business.
“Our balance sheet remains solid, with over N22.78 billion in assets, representing a 10 percent growth rate in 2015. Our liquidity metrics remain strong as well, with a current ratio 3.79 and a total liabilities -to- total assets factor of 15 percent as of December 31, 2015”, Onyema said.
Meanwhile, at the AGM, Members of the Exchange re-elected to the National Council Mr. Aigboje AigImoukhuede, CON, as the President; Engr. Muhammad Daggash; Mr. Oluwole Abegunde (Representing Meristem Securities Limited); Mr. Oladipo Aina (Representing Signet Investment & Securities Ltd) as members of the National Council.