By Udeme Ekwere

Wednesday, 24 Nov 2010

The crisis rocking the Nigerian stock market reared its ugly head again in Lagos on Tuesday as stockbrokers and operators openly disagreed with the 2009 financial results of the Nigerian Stock Exchange.

The stockbrokers, who gathered at the 49th Annual General Meeting of the NSE, vehemently opposed the adoption of the financial results due to what they called the various inconsistencies that had been trailing the financial state of the capital market regulator in the last few months.

The Interim President/Council Chairman of the NSE, Mallam Ballama Manu, had proposed the adoption of a motion approving the accounts, and requested that a stockbroker should second the motion.

For some few minutes, the stockbrokers refused to second the motion, thereby throwing the gathering into confusion.

It was only after the third request by the council chairman that a stockbroker with Capital Bancorp Limited, Mr. Aigboje Igho, pleaded with other brokers to cooperate and adopt the statement.

While seconding the motion, he noted that if the results were not adopted, it would cause a total collapse of activities in the capital market, thus completely eroding investors‘confidence in the market.

He also accused the Exchange of not doing enough to ensure that the market was attractive to investors.

Igho said, ”The market is sick and tired of the NSE not being able to put its house in order. It is important that these accounts are adopted as the failure to adopt the accounts by tomorrow will further plunge the market into crisis as investors confidence would dip.”

Also commenting on the issue, an ex-President of the NSE, Mr. Goddy Ibru, noted that, at this time, the country could not afford to have any issue that would erode investors‘ confidence in the capital market.

According to Ibru, it is important that stakeholders in the market put whatever differences they have aside in the interest of the market and the nation at large.

He said, ”It will be difficult to have a provider of funds, both short and long-term, without the Exchange. We cannot afford to have anything that will erode the confidence of the stock market. Whatever differences we might have, we should put them aside in the interest of the market and the nation.”

Stakeholders at the meeting also opposed the issue of the election and re-election of members into the council because of pending legal issues resulting from the cancellation of the election of the former President of the NSE, Alhaji Aliko Dangote.

Three council members, Rear Admiral Alison Madueke (retd), Mr. Emmanuel Ocholi and Mrs. Eniola Anako, resigned from the council. They, however, could not offer themselves for re-election because of the pending court case.

Dangote had alleged that the Exchange, under the supervision of its former Director-General, Prof. Ndi Okereke-Onyiuke, faced insolvency issues, and had petitioned the Securities and Exchange Commission to take immediate steps to examine certain irregularities in relation to the accounts and books of the NSE.

Source: Punch