The Nigerian Exchange Group Plc. held its 61st Annual General Meeting (AGM) in Lagos on Friday, 30 September 2022, where shareholders approved resolutions by the company’s board of directors.
At the meeting, Mr. Apollos Ikpobe and Dr. Okechukwu Itanyi retired by rotation and were re-elected as non-executive directors. Professor Enase Okonedo’s resignation was earlier approved by the board and as such she was not presented for re-election.
Other resolutions adopted at the AGM include the appointment of Ernst & Young as NGX Group’s external auditors, the board’s authority to fix the audit company’s remuneration, the disclosure of NGX Group’s executive remuneration, and the re-election of the Statutory Audit Committee.
The group chairman of NGX Group, Otunba Abimbola Ogunbanjo, who was due for re-election for a period of one year until the next AGM in 2023, voluntarily retired from the board and did not present himself for re-election, while four non-executive directors of the board were re-elected, including Mrs. Fatimah Bintah Bello-Ismail, Mr. Oluwole Adeosun, Mr. Chidi Agbapu, and Mr. Patrick Ajayi.
To allow for wider consultations and further engagement with shareholders, the special business to raise funds of up to N35,000,000,000 (thirty-five billion naira) for business expansion was not presented.
Commenting at the AGM, Otunba Ogunbanjo thanked shareholders for working assiduously with the board and management of the group in delivering the dividends of demutualisation, enhancing shareholder value and for attaining many firsts during his term in office. He stated, “We released our dividend policy in line with our mandate to shareholders after the completion of our recent extraordinary general meeting. We also created a revised corporate governance framework, already approved by shareholders and consistent with securities regulations to realign the interests of all stakeholders.
“In closing, I would like to thank the board and management of NGX Group for their support since I assumed office as chairman of the group in 2021. As I retire from the board, I trust that my successor will continue the legacy of service and bring greater accomplishments as the sustainable exchange group championing Africa’s socio-economic growth.”
Oscar N. Onyema, OON, GMD/CEO noted that the group recorded a 22% increase in profitability, a 13% increase in gross earnings, and 14.9% growth in revenue. He noted that the group intends to enhance its performance going forward and called for support from all stakeholders.
After the AGM, the board of directors appointed Mr. Apollos Ikpobe as acting chairman, who said he recognised the enormous responsibility associated with the role. He pledged to work with all stakeholders to ensure the stability and growth of the company during this transition. “On behalf of the board, I thank Mr. Ogunbanjo for his selfless service to the company over the years,” he said.
The events at the NGX AGM and the aftermath are good for the business. It will enable the NGX to rethink and come down from its Augean stable. We expect the NGX to make some money this year unless it is frittered away in Q4. Now they will pile up events that will involve travelling to Abuja and overseas. Holding the AGM in Lagos saved over N200million. There are still more actions open for implementation. Among these are:
The Exchange does not need four Boards of Directors and multiple committees. They are resource draining
The Exchange is top heavy. Some top management staff should go into early retirement. NGX is quick to reduce cleaners and drivers salary but very adamant to touch the top staff earning humugous salaries, allowances, pecks of office etc
Unending office restacking is resource draining and should end
The Exchange operations should becollapse into 5 Floors and sublet the remaining floors for revenue
Reduce the size of your legal and technogy teams. The Exchange is not a legal firm nor a tech company. Since you still relied on external consultants to undertake assignments then why load the payroll with staff?
A fundamental review of the Listing Requirements into streams with companies in compliance with stream 3 allowed to raise public funds
NGX Real Estate to consider listing REITs on the abandoned and unoccupied properties in Marina and FGN Secretariat
The introduction of bid-offer trading is now a necessity for bonds
Avoid wasting funds on derivatives. Close to N1billion had been committed with nothing to show. The understanding of the market and obviously interest are poor
Expose all the top Nigerians that have been caught manipulating the stock market for personal gains instead of cover up
The GCEO has overstayed. He should exit
The current NGX CEO is not fit for purpose. The market needs a CEO that understands local dynamics, marketer, extrovert or a good mixer, an exposed primary market operator among others.
Demystify that stock market is elitist or for money bags
NGX has failed woefully in encouraging financial inclusion. It should not expect other corporates to sponsor it’s outreach programmes while it spends money on frivolities
More.collaborations with SEC to introduce additional and tradable medium term instruments
We need a profitable NGX that is also compact and purpose driven
Trust you find this contribution useful
Thanks Mr Gab.for the above. It is a pity what the exchange has turned into. I bought my first set of shares in 1981 when everything was manual. We had it easy then but what I read these days are appalling. How can a CEO spent 10 years in a place without growing multiple successors. In those days, Dr Kolade will castigate you in our office for not developing and nurturing successors. I doubt if there is conviviality between the top executives. I reason they will see the new CEO as a disruptor
I read NGX paid large performance incentive bonus to staff for making losses while shareholders were neglected. Obviously the junior staff would have suffered in the sharing while top management smile to the bank.
Perhaps what NGX need is another forensic audit? I live that to SEC to decide so they can recover their solenoid funds, market manipulation schemes, double dealing by top management staff and other corporate governance impairments.
I have not invested in a while because I buy only from the primary market and we are seeing nothing. I have never sold any of my shares though I demateriazed some not all because of the cumbersome process
No nation can grow without a virile and supportive capital market but one is worried on the stunted growth of the stock exchange