By Osaigbovo Iguobaro, Benin
A Professor of Accounting and Finance in the University of Benin, has allayed fears over the proposed demutualisation of the Nigerian securities market in the first quarter of next year.
Prof.(Mrs) Patience Amechi Isenmila, assured that the adoption of the business model would help to boost liquidity and stimulate economic growth in response global economic competitiveness and technological advancement.
Demutualisation is transforming a stock exchange from being a self-regulatory organisation, with no shareholders, to a public company that is shareowner-based and profit-seeking. It allows the shares of an exchange to be quoted on the floor.
Besides, the concept typically separates ownership and voting rights from the right of access to trading on exchanges.
Prof. (Mrs) Patience Amechi Isenmila gave the charge while delivering the 196th inaugural lecturer series of the University held at the Ugbowo main Campus in Benin.
The lecture titled: “Nigerian Securities market: The twists and the turns towards engendering growth” was the first inaugural lecture presented by the only female Professor in the Department of Accounting and the Faculty of Management sciences in the University.
Isenmila who lamented the initial hiccups Demutualisation had faced since the policy was first proposd in June 2002 by Abdul Razaq, former President of the Nigerian stock exchange, listed the government policies, return on investment, lending rate, as some of the factors influencing the stock exchange growth of the securities and exchange Commission (SEC) which was founded in 1979.
The University don, recalled that the banking and Insurance sector reform between 2004 and 2007 by Prof. Charles Soludo,mthe former Governor of the Central Bank of Nigeria (CBN) “transformed the Nigeria securities market, leading to the unprecedented growth, and “the sharp increase in market capitalisation from N12.1 trillion in 2004 to N13.2 trillion in 2017”.
In a remark, the Vice-Chancellor of the University of Benin, Prof. Faraday Orumwense who was represented by the Deputy Vice-Chancellor (Academic), Prof. Pius Iribhogbe, extolled the sterling qualities of the inaugural lecturer, Prof. Patience Amechi Isenmila for her academic query.