By Peter OBIORA investadvocate

Dec 11 2010 09.56 GMT

Lagos (INVESTADVOCATE)-There will be no reduction in listing fees now due to the decline in revenue of the Nigerian Stock Exchange (NSE) by 80 percent (80%).

Emmanuel Ikazoboh, Interim Administrator of the NSE made this affirmation recently in Lagos Nigeria at the Triennial Conference of the Independent Shareholders Association of Nigeria (ISAN).

 

“The reason why we cannot immediately reduce our fees; even when I tried to; is that looking at our revenue right now, it has plummeted to about 80% so there is no way we can do that now if the Exchange must survive” he said.

 

From the NSE’s Annual Reports and Accounts made available to investadvocate, Gross Income declined from N18.709 billion in year 2008 to N4.177 billion in year 2009 Financial Year End (FYE); indicating a decline of 78% in the review period.

 

Ikazoboh affirmed that though reduction in listing fees is a good idea; but despite the decline in revenue of the NSE, the Nigeria’s Exchange is trying to ensure that they streamline and make meaningful its efforts to have the right companies that would be efficient and generate revenue when listed on the Floor of the NSE.

 

“Talking about reduction of fees, that is a good idea; because personally I believe that the only way you can attract more companies to list; is to reduce your listing fees; this is very important” he said.

 

According to him, the Nigeria’s Exchange would always be reviewing its listing requirements and regulations to those who want to be in the Nation’s Stock Exchange.

 

“I will like to crave your indulgence to say that we would always be reviewing our listing requirements and regulations to those who want to trade in our Market and as long as we continue to do that, I believe we would be improving” the Interim Administrator said.

 

“Talking about the Stock Exchange, in every environment, it is a market where you have buyers and sellers. We do not restrict who comes to buy neither do we restrict who wants to sell, what is important is that we have laid down rules; which you must comply with if you have to trade in our Market” Ikazoboh said.

 

The Interim Administrator said that one of the ways to move the Nigeria’s Exchange forward and address most of its pressing problems is to become a member of the World Federation of Exchanges (WFEs).

 

“One of the ways we are trying to make our Exchange become sustainable; irrespective of who is the Administrator or Director General; is to gradually get our Stock Exchange to become a member of the World Federation of Exchanges” Ikazaboh affirmed.

 

He said that being a member of the WFE, there are rules which must be followed and there would be no question of local environment or local rules, “we just have to follow the global rules and those rules will make our Exchange very efficient and client friendly, good corporate governance and in the process, the shareholders and investors will be better off for it” he said.

 

He noted that the proposed new Trading Platform to be acquired by the Exchange would ensure efficiency and reduce the high listing fees at the NSE.

 

“I want to say clearly that we are investing in a new Trading platform, the Trading platform is going to cost us a lot; because some of these inefficiencies mentioned are responsible for the high listing cost, if we now upgrade to meet what the WFEs wants us to have, efficiency would improve, listing cost will drastically reduced and more companies would be listed, if we have larger companies listed, revenue would go up” Ikazoboh affirmed.