Peter Egwuatu
24 October 2008
The Nigerian Stock Exchange(NSE) has commenced a total restructuring of its structure which will culminate to its being listed on it own exchange and other exchanges.
The restructuring of the NSE is coming after a diagnostic study of the structure, management and processes of the Exchange was undertaken by Accenture in a bid to reposition it.
The Secretary of the Council of the NSE, Mrs. Josephine Igbinosun in statement disclosed that following the retreat in June 2008, the Council of the NSE approved a restructuring plan which include the demutualization of the Exchange, that is, listing the Exchange on the NSE and other stock Exchanges.
According to her " The Council of the Nigerian Stock Exchange (NSE) has at its meeting which took place on Friday, 17th October 2008 approved a new organizational structure for The NSE. The new structure is a consequence of the reorganisation which the Council of The NSE approved early in 2008.
"Under the new structure, there will be a Group Chief Executive Officer and three Executive Directors. The three Directorates will be Compliance & Surveillance, Quotations & Listings and Market Operation/l.T."
The restructuring plan, which is expected to terminate in December 2010, will involve the transformation of The NSE's Governance, IT Platform and diversification of its listings and market development product offerings into Derivatives and ETFs (Exchange Traded Funds).
She further declared that the transformation process has been broken into five distinct and parallel phases.
According to her " Phase 1 of the plan which commenced in June 2008 is the pre transformation phase which involves setting up a programme office and appointing a programme manager. Phase 11 of the restructuring involves the internal restructuring phase and migrating The NSE into a new operating model. Execution of the first 2 phases is in full swing. Phase 111 is the most critical Phase and will involve working with identified stakeholders to transform
The NSE to become a diverse and liquid market with a significant number of large, medium and small companies and investors. Programme management is phase 1V and will involve ensuring that resources are deployed to all initiatives and managing risks and ensure completion of the project".
On the last phase, which is the change management , Igbinosun disclosed that the management phase which will ensure that all stakeholders understand the implications of the changes on their various businesses, get buy-in and ensure that the change process gets support of investors, stockbrokers, and Financial Regulators such as Central Bank of Nigeria (CBN) and Securities & Exchange Commission (SEC).
" It is expected that by the end of the exercise The NSE will be the leading stock exchange in Africa. By December 2010, The NSE would be a dematerialised, demutualised, diversified and very liquid world class market" She added.
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