Chike-Obi invested Fellow of CIS, re-opens call for Securities Lending
The Chartered Institute of Stockbrokers (CIS), has invested the pioneer Chief Executive Officer of Asset Management Corporation of Nigeria (AMCON) and the Chairman of Fidelity Bank PLC., Mr Mustafa Chike-Obi, as a Honourary Fellow even as he pledged to work with the Institute to initiate moves for the effective take off of securities lending in the Nigerian capital market.
Chike-Obi’s plan is to enhance product option over margin lending that was in vogue in the Nigerian capital market until it was suspended due to its controversial deployment by some market operators at a point.
Securities lending involves the owner of shares or bonds transferring them temporarily to a borrower. Subsequently, the borrower transfers other shares, bonds or cash to the lender as collateral and pays a borrowing fee. Securities lending can be used to increase fund returns to investors on incremental basis.
In his acceptance speech, during the Investiture ceremony on Wednesday, in Lagos, Chike-Obi, who appreciated the Board of Fellows and the entire Council members of the Institute for the great honour, said he had always regarded himself as a stockbroker. He explained that when he came into AMCON, the biggest problem was debt in the financial market and he realised that he needed to reach a solution very early.
He stated that he was ready to work with the Institute to reopen the processes that will make securities lending a product in the capital market.
“With securities lending, the Nigerian capital market, in addition to all the recent achievements and regulations can bounce back again. Securities lending will increase the volume of transactions in the market. It will create hedging opportunities and value propositions. Until we do that, we are going to be a stone-age capital market. This is not for just equities but debt securities as well. Now that I am a honourary Fellow Member I shall devote time and efforts to support the market. We shall make sure that securities lending is a reality in Nigeria in the next two years,” Chike-Obi said.
Earlier in his welcome address, the CIS President, Mr Oluwole Adeosun, extolled the virtues of Chike-Obi as a thoroughbred professional and his continuous support to the growth and development of the economy. He explained the justification for conferring Honourary Fellowship to deserving individuals:
“ The Governing Council of the Chartered Institute of Stockbrokers, in its wisdom a few years ago, decided to admit into our membership community, persons who have distinguished themselves as thoroughbred professionals of the calibre deserving of being a Stockbroker. As a result of this Council resolution, ten eminent Nigerians have been admitted as Honorary Fellows of the Chartered Institute of Stockbrokers, out of which seven have been invested. Today, we have gathered here to celebrate yet another true icon of the Nigerian corporate community who is being admitted into the CIS family.
“ Mustafa Chike-Obi has the perfect foundation to be a success in the capital market. He graduated First Class Bachelor’s Degree in Mathematics, from the University of Lagos. He is also a graduate of the prestigious Stanford University Graduate School of Business. He was the inaugural Chief Executive Officer of the Asset Management Corporation of Nigeria (‘AMCON’) where he served between 2010 -2015. As we all know, AMCON was established in 2010 to efficiently resolve the non-performing loan assets of banks in Nigeria. It is on record that, during his 5-year tenure in AMCON, Mustafa Chike-Obi performed outstandingly and led AMCON to meet its mandates to a significant extent.
“It is reputed that Mustafa Chike-Obi created the TreasuryDepartment concept in Nigerian banking and headed the first such department in Nigeria at Chase Merchant Bank, 1980 – 82m,” Adeosun said.
The colourful ceremony was attended by some of the Institute’s Past Presidents, Members of the Board of Fellows, Council Members, seasoned bankers, and top captains of industries.
