Tuesday, 19 June 2012

Stockbrokers Monday welcomed the reinstatement of business mogul, Alhaji Aliko Dangote, as the president of the council of the Nigerian Stock Exchange (NSE), saying it would impact positively on the nations capital market going forward.
Dangote, whose election of August 2009, was nullified in March 2010, was reinstated as the stock exchanges president last Friday following three rulings by the Court of Appeal in Lagos upholding his appeals against cases that led to the nullification of his election. He is expected to take over from Mallam Ballama Manu, who has been the interim president of the council of the exchange since August 5, 2010 when Securities and Exchange Commission (SEC) literarily took over the running of exchange.
Reacting to the news of Dangotes reinstatement, stockbrokers who spoke with THISDAY said it was a good development for the market because it had cleared many hurdles which had hitherto affected investors confidence and the development of the market.
Past President of the Chartered Institute of Stockbrokers (CIS), Mr. Dipo Aina, said the resolution of the cases which had cleared most of the issues were used to perpetuate illegality in the Nigerian stock market. With the court ruling, the picture is now clearer. The cases have been cleared and this is a good development because the cases have been impeding so many issues that could have helped in the recovery of the market. Now that the cases are over, we should learn from our past mistakes, he said.
Aina, who is the managing director of Signet Securities and Investments Limited, added he liked what Dangote said that he would accord stockbrokers their appropriate place in the council of the exchange.  We can now move forward because there are no more inhibiting factors again, he declared. Another broker and managing director of Partnership Investment Company Limited, Mr. Victor Ogienwonyi, said he was confident in Dangote because he is doer and not a talker.
He has set his own agenda, so let us see how far he goes from here. You know Dangote is a doer and not talker. I have confidence in him, Ogienwonyi said. Speaking in the same vein, managing director of Crane Securities Limited, Mr. Mike Ezeh, said Dangotes return was a good omen for the market. Reacting to the court  judgments that reinstated him, Dangote informed THISDAY that he was very happy with the rulings, as they had vindicated his position; all along that he should not have been removed as president of the stock exchanges council. He promised
He said his first priority would be to continue with the reforms started by the present chief executive of the NSE, Mr. Oscar Onyema, improve governance and transparency, and restore confidence in the market.

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Power, transportation hindering real sector growth, says CBN

For the full benefits of the opportunities created with the reforms in the banking sector to crystallize, a number of lingering challenges in the real sector would need to be addressed. The most critical of these is the huge infrastructural deficit comprising of power and transportation.
This was the view of the Central Bank of Nigeria's (CBN) Governor, Lamido Sanusi, during the presentation of a paper on the recent banking reform and opportunities for real sector growth in Nigeria, at the fourth memorial lecture of the Clement Isong Foundation in Lagos, at the weekend.
He however stated that though outcomes on financial sector reforms in Nigeria over the years which were aimed at repositioning financial institutions for effective mobilization and utilization of financial services for economic development have been mixed and some challenges still persist, concerted efforts are being made to overcome them.
Sanusi who was represented by his Deputy, Suleiman Babarau, noted that the prospect of the real sector growth is bright given the various reforms in the financial sector aimed to unlock the credit potentials of deposit money banks, the lingering challenges of infrastructure deficit, has continued to limit the full realization of the reforms for the sector.
What is clear however, is that the growth of credit to the real sector, though still relatively not very impressive, has been rising over time and it is expected to improve further as the effects of the current reforms permeate the banks. Similarly, the performance of the real sector in the face of the banking sector reforms has been impressive and we hope to improve funding to the sector, he added.
On the way out for the nations economy, Sanusi stressed that though still fragile, financial markets have recovered faster than expected, urging greater efforts in accelerating reforms in the other sectors of the economy and protect depositors/shareholders fund.
In addition, he added: the rebound in international commodity prices is expected to further support economic growth in commodity producing regions, including Nigeria. Sanusi said a major fall-out of the global financial crisis fostered the need to strengthen regulation and supervision, engage in better risk management practices in financial institutions and restore confidence in the financial system.
According to him, the regulator is committed to enhancing the quality of banks through regulatory framework reform, risk based supervision, consumer protection, corporate governance and disclosure and transparency.

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