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NGX in the throes of booby trap

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It used to be a great privilege and status symbol to work at The Nigerian Stock Exchange up till 2010, before the palace coup at the board sent virtually all of us in the management packing. The rest they say is history, but our sympathy for the system remains absolute.

During our days, staff attrition was almost nil, except internal restructuring that occasionally affects a couple of staff but not to the level of ‘earthquake.’ The Exchange that time, a not-for-profit organisation, operated Departments and later upscaled to Directorates, but the heads report to the incumbent Director General.

It is heartwarming and commendable that the demutualisation of The Exchange, which was initiated during our administration, became operational in March 2021, under the new Management.

The new structure of NGX, led by the Group Chief Executive Officer, Prince Oscar Onyema, comprises three wholly-owned subsidiaries: Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (REGCO) and NGX Real Estate Limited (RELCO). Given the Exchange’s mode of operation, the organisation is supposed to be attractive to the future drivers of the economy- Millennials, Gen Z and Gen Alfa, to build a career. But the spate of staff attrition in the last two years suggests that all is not well in the market.

Since demutualisation is just two years old, one can argue that it is too early to assess the relevance or otherwise of the new group structure of the Exchange. However, if morning shows the day, there is a need to examine what is fast becoming an underbelly of the group structure, the implications on the Exchange that promises to be the Nigerian investment gateway and the way forward

The CEOs of the three subsidiaries do not report to the Group CEO. The companies operate in silos with individual Board and Management. Since 2010, CEOs of NGX at different levels have been coming from outside. Given the current structure, if Onyema retires, I do not think his successor will automatically come from within as the job will likely be advertised. This implies that internal staff shall have to compete with the external applicants, an indication of lack of succession plan in an organisation whose business is highly technical.

The seemingly unattractive work environment that is unfolding at NGX has raised a red flag to suitability and sustainability of the group structure. The Nigeria Exchange Limited may be making money through listing and trading charges but are the other subsidiaries financially viable? Do they have enough staff to generate income?

At the pace that NGX is going, staff morale is dwindling by the day. The glamour of working at the Exchange is diminishing. There is nothing wrong with a group structure if it is properly managed. Singapore Exchange Limited (SGX Group) operates a conglomerate of nine divisions. Each division handles specific businesses. The market trades in equity, fixed income, currency and Commodity. But the divisions do not operate in silos. Brazilian Stock Exchange demutualised in 2007 and operates a comfortable group structure.

In a group structure which is practised by some leading companies in Nigeria, every staff member belongs to the group. They are technically on secondment to the subsidiary and the group Chief Executive Officer is the most senior CEO. The Group CEO can emerge from the CEO of any subsidiary as leading a subsidiary is a tutelage to lead the entire group.

The group structure model of NGX appears strange and therefore esoteric. It is at variance with all-known models in this era of dynamic and flexible management systems. There is a compelling need by the various Boards and Management of each entity to address the ugly situation. It’s either the NGX model is badly implemented or deliberately created to weaken the system and make it attractive to corporate raiders.

Corporate raiders are always on the prowl. They simply need to pick up the holdings of many shareholders, especially institutional ones at premium through a crossed- deal without infringing on the easy-to- breach Rule 17 of NGX which deals with issuers’ information disclosure. FMDQ is already poised to execute the hatchet job.

For a valid peer review, FMDQ’s silver spoon background should be discounted from its financial muscle. Its heavy weights are some of the key drivers of Nigerian fiscal and monetary policy. It is only in Nigeria where one can be a judge in his own court.

After some initial resistance from the shareholders, FMDQ had in June this year snapped up 16.61 percent holdings of Artemis Limited and 5% stake of Leadway Insurance, totaling 21.61 percent in CSCS through NASD PLC. FMDQ shot into fame with trading in debt instruments when it came on board.

Those who understand the market history will agree that trading in debt instruments was the strength of The Nigerian Stock Exchange during its formative years. It was more popular than equity when Uncle Olutola Mobolurin and his peers were actively engaged in manual trading.

But at a point, the infectious share purchase through Initial Public Offerings (IPOs) and rise in the activities of shareholders’ associations overshadowed trading in debt instruments and the market became top-heavy in equity trading. FMDQ took advantage of the niche market. Currently, the bankers are the ones mainly reaping the dividends of the debt and currency market to the exclusion of the stockbrokers. It is not too late for NGX to reverse the trend.

The acquisition of CSCS shares would have been achieved about two years ago but for the Otunba Abimbola Ogunbanjo- led Board that strenuously resisted all the moves by FMDQ during his tenure as the President of the mutual NSE . As a seasoned corporate lawyer, he knew the implications on the future existence of the Exchange.

His voluntary resignation as the Chairman of NGX PLC last year was a great sacrifice to douse the raging tension ahead of the Annual General Meeting. He shall go into the Exchange’s history as the last President of the mutual Exchange and the first Chairman of Nigerian Exchange Group PLC under demutualisation. By virtue of the monopoly it enjoys in the debt and currency markets, FMDQ has acquired sufficient financial muscle to launch a hostile takeover of NGX and turn it into its subsidiary.

It must be noted that the current management of NGX is doing a lot to further globalise the operation, increase market capitalization, boost capacity and democratise investments across financial assets. But NGX is a global brand and should not make itself a target for acquisition.

The current structure is a booby trap. As a low-hanging fruit, it does not diminish the Exchange’s stature if the subsidiaries are turned into departments while the organisation operates a single but professional Board with eyes on corporate governance. This will enhance efficiency, save cost, create a level playing field for all staff and strengthen the substance and essence of the position of the Group Chief Executive. This is a tough option that may likely hurt certain oppositions and affect some staff. But it is the reality.

Today, NGX is no longer a monopoly exchange and stockbrokers are multi-dimensional professionals. They can trade on FMDQ, NASD PLC, Lagos Commodities and Futures Exchange (LCFE) Afex and other platforms, including offshore. But NGX is a legacy that should not be allowed to lose its original identity. It is the face of stockbrokers. Its existence is a product of the sweat of different generations.

If the current situation is not addressed, Stockbrokers may wake up one black day to discover that NGX is no more. At 62, it will be an irony of history if the premier Exchange in Nigeria surrenders to corporate raiders and loses its global identity, which has been rising for over three decades. The forefathers of this citadel of capitalism shall weep in their graves.

Oni is an Integrated Communications Strategist, Chartered Stockbroker and Commodity Broker, and is the Chief Executive Officer, Sofunix Investment and Communications.

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Opinion

President Tinubu: A year of healing and unifying Nigeria

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By Fredrick Nwabufo

The intangibles of leadership are as potent and profound as the corporeal manifestations of governance. A people must not only see the brick-and-mortar elements of leadership; they must also feel and sense leadership in its quantum of compassion, healing, solace, and capacity to inspire unity, as well as foster peace and progress.

In fact, the incorporeal constituents of leadership are so important that citizens may not see utility in improved economic well-being and massive industrial transformation, if the leadership does not manage the delicate confluences of social and psychological needs.

In some of my treatises as a columnist years ago, I had written that beyond other rudimentary ingredients and supplements of leadership, Nigeria needs a leader who is a healer-in-chief and a unifier by example. A leader who has the proclivity and deliberateness to bring the nation together.

I am most delighted and proud to say Nigeria has found its healer-in-chief; its unifier by example, and consoler-in-chief in President Bola Tinubu. He is the President for all Nigerians.

It has been President Tinubu’s one year of healing and unifying Nigeria. In his inaugural speech on May 29, 2023, the President made a declaration that has become a defining motif of his administration.

He said: “Our administration shall govern on your behalf but never rule over you. We shall consult and dialogue but never dictate. We shall reach out to all but never put down a single person for holding views contrary to our own. We are here to further mend and heal this nation, not tear, and injure it.”

And true to his promise, President Tinubu has been listening and reaching out to Nigerians of diverse complexions and artificial partitions, as well as mending and healing the nation.

Healing and unifying the nation, how, you might ask? By personal example; in words and in deeds. There is no greater purpose and value to leadership than personal example. The place of leadership in forging bonds of communality is the place of purpose and deliberateness. Leadership must be deliberate in managing diversity and in fostering kinship among variegated people. Nation building cannot be left to chance or to a whim. There must be purposive plans and actions towards uniting the people. And these plans and actions, President Tinubu has been successful at carrying through in the past one year.

The President has maintained an accustomed patriotic, graceful, and expansive mien. In his public statements, mostly done extempore, he has always faithfully affirmed his commitment to Nigeria’s unity.

In one of his many noble articulations, he said, “I am irrevocably committed to the unity of Nigeria and constitutional democracy. Constitutional democracy has been reflected greatly here since we assumed office.”

Also to consider are the broad and far-reaching projects and programmes which are in themselves totems of unity – with all Nigerians, irrespective of class or creed, as beneficiaries and potential beneficiaries.

The approval of the Renewed Hope Infrastructure Development Fund to facilitate effective infrastructure development across the pivotal areas of agriculture, transportation, ports, aviation, energy, healthcare, and education, with salient projects across the country is a further affirmation of statesmanship and leadership.

The ongoing epochal Lagos-Calabar Coastal Road, with its attendant immense economic and social benefits to many states within and outside that corridor; the Sokoto-Badagry Road project, and the completed Port Harcourt to Aba stretch of the Port Harcourt to Maiduguri narrow-gauge rail, among other key developments across the nation, assert the all-encompassing and genuine intentionality to nation building. No Nigerian is left behind.

Within the first year, the President also approved the upgrade of key health infrastructure and equipment across all six geo-political zones in line with his administration’s vision of overhauling the health and social welfare sector for enhanced service delivery to all Nigerians.

The following teaching hospitals across the geo-political zones were marked for the establishment of oncology and nuclear medicine centres as part of the President’s bid to ensure that top-tier cancer diagnosis and care is accessible across the country: (1) University of Benin Teaching Hospital, (2) Ahmadu Bello University Teaching Hospital, (3) University of Nigeria (Nsukka) Teaching Hospital, (4) Federal Teaching Hospital, Katsina, (5) University of Jos Teaching Hospital, and (6) Lagos University Teaching Hospital.

Ten other hospitals across all the geo-political zones were also pencilled for critical healthcare-service expansion projects across the fields of radiology, clinical pathology, medical and radiation oncology, and cardiac catheterisation.

The take-off of the first phase of the Consumer Credit Scheme, which is essentially a mitochondrion enabling citizens to improve their quality of life by accessing goods and services upfront, paying responsibly over time, and by the same token bolstering local industry and stimulating job creation is another social cohesion sealant – with all classes of working Nigerians as beneficiaries.  In summary, the establishment of the Nigerian Education Loan Fund (NELFUND) with the pre-eminent vision of safeguarding Nigeria’s future by ensuring that all Nigerian students and youths, regardless of their social, ethnic, or religious backgrounds, have access to sustainable higher education and functional skills, further accents the President’s fidelity to building a stable, strong, united, peaceful, and progressive nation.

One thing is certain: Citizens agree that they have a President for all Nigerians.

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Opinion

The quest for State Police in Nigeria

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By Kenechukwu Aguolu ([email protected])

The call for state police resonates deeply with a fundamental yearning for safety and security. It embodies a collective aspiration for a society where lives and properties are safeguarded, and individuals can thrive without fear. The argument for state police rests on three pivotal points, each accentuating potential benefits that could significantly enhance the nation’s security landscape:

  1. Increased Responsiveness: The proposition of state police is centered on establishing a command and control structure closer to the communities they serve. This proximity promises faster response times to incidents and enables more immediate intervention during emergencies. By bridging the gap between law enforcement agencies and local communities, state police units can effectively address security threats with agility and precision.
  2. Local Knowledge: State police officers, being indigenous to their communities, are believed to possess an unparalleled understanding of local dynamics and crime patterns. This intimate familiarity equips them with the insights needed to devise targeted crime-fighting strategies tailored to the specific needs of each locality. By leveraging this deep-seated knowledge, state police units can effectively combat crime at its roots, thereby enhancing overall safety and security.
  3. Commitment to Peace: There exists a prevailing belief that state police officers, hailing from the areas they serve, would demonstrate a heightened commitment to maintaining peace and order. This intrinsic connection to their communities fosters a sense of duty and responsibility, driving greater dedication to ensuring the safety and well-being of residents. By forging strong bonds with the local populace, state police units can cultivate trust and cooperation, essential for effective community policing.

However, it is crucial to acknowledge the historical context surrounding state police in Nigeria. Past instances of abuse led to its abolition during the military era. Also, concerns have been raised regarding the potential for overfamiliarity and bias among officers stationed in their localities. The close ties between law enforcement personnel and the communities they serve may lead to reluctance to enforce the law objectively, particularly when dealing with acquaintances or relatives. Additionally, doubts persist regarding the ability of state governments to adequately fund state police, posing significant challenges to the viability.

Regardless of the chosen approach—whether through the introduction of state police or the maintenance of the current system—certain foundational elements are indispensable for building an effective policing:

  1. Right Recruitment: The selection of individuals with integrity, professionalism, and a commitment to public service through rigorous screening processes is paramount. By upholding stringent standards in recruitment, law enforcement agencies can ensure that only the most qualified candidates are entrusted with the responsibility of safeguarding communities.
  2. Adequate Staffing: Nigeria’s police force currently falls short of international standards for officer-to-citizen ratios, underscoring the urgent need for increased staffing levels. Addressing this shortfall is crucial, particularly given the country’s security challenges. Adequate staffing not only enhances the effectiveness of policing efforts but also fosters a sense of security and reassurance among the populace.
  3. Training and Equipment: Ongoing training programs are essential to equip officers with the necessary skills and knowledge to perform their duties effectively. Additionally, providing police personnel with modern equipment and resources enhances their capacity to maintain law and order in their communities. By investing in training and equipment, law enforcement agencies can ensure that officers are adequately equipped to tackle emerging security threats.
  4. Proper Funding: Adequate financial investment in law enforcement is necessary to ensure the sustainability and effectiveness of policing efforts. This includes budget allocations for operational expenses, infrastructure development, and technological advancements to enhance crime prevention and detection capabilities. By prioritising funding for law enforcement, governments demonstrate a commitment to the safety and security of their citizens.
  5. Adequate Welfare: Competitive salaries, allowances, accommodation, and comprehensive welfare packages are essential to attract and retain qualified officers. Providing life insurance plans and other benefits demonstrates a commitment to the well-being of law enforcement personnel and their families. By prioritising officer welfare, the government can enhance morale and retention rates, ensuring effectiveness in policing efforts.

While Nigeria has made commendable progress in reducing insecurity, it is imperative to recognise that security agents alone cannot solve the complex security challenges facing the nation. A holistic approach that addresses socio-economic factors, strengthens the justice system, and prioritizes education is essential.

In conclusion, the pursuit of state police in Nigeria embodies a profound yearning for safety and security—a desire to create a society where individuals can live free from fear and insecurity. While challenges abound and skepticism persists, the potential benefits of state police cannot be ignored. By addressing historical concerns, investing in foundational elements of effective policing, and adopting a holistic approach to crime prevention, Nigeria can chart a path towards a safer and more prosperous future for all its citizens.

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Opinion

The state of press freedom in Nigeria: Navigating challenges in pursuit of truth

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By Paulyn Owhievbie Ugbodaga ([email protected])

Press freedom stands as a cornerstone of democracy, a vital pillar that upholds transparency, accountability, and the fundamental rights of citizens. In Nigeria, a nation rich in diversity and complexity, the landscape of press freedom is interspersed with both progress and challenges. As journalists strive to uncover truths and hold power to account, they often find themselves navigating a terrain fraught with obstacles.

Nigeria’s journey toward press freedom has been a turbulent one, marked by periods of repression and resilience. Following independence in 1960, the Nigerian press emerged as a vibrant force, serving as a watchdog and voice for the people. However, the military regimes that dominated much of Nigeria’s early history often viewed press freedom as a threat to their authority. Journalists faced censorship, harassment, and imprisonment, as the government sought to control the flow of information.

In recent decades, Nigeria has made significant strides toward enhancing press freedom. The transition to civilian rule in 1999 brought renewed hope for a free and independent media. Constitutional guarantees of press freedom, coupled with the proliferation of independent media outlets, signaled a promising era for journalism in Nigeria.

However, challenges persist, casting a shadow over these advancements. Intimidation, harassment, and violence against journalists remain prevalent, particularly in conflict-prone regions and areas with entrenched political interests. Reporters covering sensitive topics such as corruption, human rights abuses, and religious extremism often face threats to their safety and livelihoods.

Nigeria boasts a legal framework that ostensibly protects press freedom. The 1999 Constitution guarantees freedom of expression and the press, while legislation such as the Freedom of Information Act seeks to promote transparency and accountability. Despite these legal safeguards, the enforcement and interpretation of these laws can be inconsistent, leaving journalists vulnerable to arbitrary arrest, prosecution, and censorship.

Beyond legal and physical threats, economic factors pose significant challenges to press freedom in Nigeria. Many media organisations struggle to sustain themselves financially, relying on advertising revenue and government subsidies to stay afloat. This dependence can compromise editorial independence, as media outlets may prioritise commercial interests over journalistic integrity. Additionally, low wages and precarious working conditions contribute to a culture of self-censorship, as journalists grapple with the fear of reprisals for daring to speak truth to power.

Amidst these challenges, the rise of digital media has emerged as a double-edged sword for press freedom in Nigeria. On one hand, social media platforms offer unprecedented opportunities for citizen journalism and grassroots activism, empowering individuals to disseminate information and amplify marginalised voices. On the other hand, online spaces can be breeding grounds for misinformation, hate speech, and digital censorship, exacerbating existing tensions and undermining public trust in traditional media.

As Nigeria navigates the complexities of press freedom in the 21st century, there is a pressing need for concerted action to safeguard the rights of journalists and uphold the principles of a free and independent press. Government authorities must demonstrate a commitment to upholding constitutional guarantees of press freedom, by refraining from undue interference in media operations and ensuring accountability for attacks against journalists.

Civil society organisations, advocacy groups, and international partners also have a crucial role to play in supporting the media community, providing training, legal assistance, and advocacy efforts to strengthen journalistic practices and defend press freedom rights.

In the pursuit of truth and accountability, journalists in Nigeria continue to defy adversity, risking their safety and livelihoods to shine a light on issues of public concern. Their resilience serves as a beacon of hope, inspiring a new generation of reporters to uphold the principles of press freedom and safeguard democracy for generations to come. As Nigeria grapples with the challenges of the modern media landscape, it is imperative that we stand united in our commitment to defending the rights of journalists to speak truth to power.

#freepress

#pressfreedom

#freedomofspeech

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