Operators decry delay in naming capital market head

Some capital market operators have raised concern over the delay in the appointment of a permanent head for the Nigerian Stock Exchange (NSE), despite the initial promise by the Securities and Exchange Commission (SEC) that the process will be done quickly.

Emmanuel Ikazoboh has been functioning as an interim head of the NSE since the sack of Ndi Okereke-Onyiuke, the former director general, three months ago.

David Amaechi, an executive member of the Shareholders Association of Nigeria, said until the Exchange gets a stable leader, “the market may not enjoy stability and woo investors.”

Mr. Amaechi said the NSE management and its council need to be sorted out to ensure a smooth running of the Exchange.

A stockbroker at the Exchange, who would not like to be mentioned, said the capital market investment “is a long term investment that requires a long term administrator.” “Investors, especially foreign ones, always look out for a stable market to put in their money; just like no investor will put money in a country that has no political stability,” he said.

Finance analysts at Proshare Nigeria Limited, an investment advisory firm, said the recent advertorial by Accenture, the recruiting company for the NSE, suggest that there may be a further delay in the appointment process.

“The NSE today, functions in effect under a sole administrator-ship of the SEC, without a determinate date and milestone for delivering on its mandate. This has its downsides, and it is believed that the administrator may find himself bugged down with issues not concomitant with the rationale for the changes that took place, no matter how lofty and altruistic the natural intentions are,” they said.

After the initial October 12 deadline for the post, Accenture placed another advert for the offices of the NSE chief executive officer and three executive directors.

The analysts said, “If only for professional etiquette, Accenture should issue a statement to clarify why it considered it necessary to republish the advertisement for the (NSE) chief executive officer and executive director positions.”

They said the Stock Exchange is supposed to be “an entity, which provides trading facilities for stock brokers and traders to trade securities, not internal politics. The NSE has unfortunately found itself doing more of the latter lately than the former. This ought to be expected and accepted as a consequence of the way we choose to conduct business in our clime; yet it does not make it an acceptable practice.”

However, Mr. Ikazoboh recently told journalists that he is not sure when his tenure will expire.

“How long my tenure will take, I cannot clearly say right now. But I can only say that the process has started for the selection of a new director general. As soon as a new DG is in place, I’ll step aside. The process of the recruitment of the DG is ongoing,” he said.