(L-R) Chukwuemeka Eze, new chairman, Chartered Institute of Taxation of Nigeria (CITN), Ikeja Chapter, being decorated by Kunle Quadri, national president, CITN, at the investitureof Eze as the 4th district chairman of CITN, Lagos.

There are strong indications that the Securities and Exchanges Commission (SEC) and the Nigerian Stock Exchange (NSE) may be on collusion course as there seems to be a gulf between the institutions on how to execute the demands of succession at the exchange, BusinessWorld Intelligence can reveal. Arunma Oteh, the director-general of Sec, is insisting that NSE must adhere to international standards by advertising the position beyond the Nigerian environment when the council of the NSE has already perfected a succession plan for the exchange.
Another issue that may pitch the SEC against the NSE is the SEC’s querying of the Alternative Investment Market (AIM), whose take off the NSE has already perfected and had already promoted across Africa.
The director-general of NSE, Professor Ndi Okereke-Onyiuke had some months ago indicated her resolve to retire from the exchange, assuring that there is succession plan in place through which its helmsmen had evolved over the years.
BusinessWorld investigations can also reveal that that NSE may fall out with SEC based on Oteh’s continued reference to the report by the Committee on Capital Market Structures and Processes headed by Dotun Sulaiman, whose application as a standard guideline for capital market activities has been a source of discontent among a good segment of the operators in the capital market. The report popularly referred to as ‘Kings College Committee’ (majority of the members are Kings College old boys) is believednot to have been comprehensively ratified by the industry.
Some enthusiastic foreign investors had told BusinessWorld that since SEC seems not to have bought NSE’s succession plan, there seems to be some fundamental problems with the capital market in the country as the seeming regulatory row in the country could make nonsense of any serious investment. They argued that they would have to wait until the issue is sorted out before casting their nets into the economy.
Further investigations reveal that the seeming disagreement is coming at a very critical time in the history of Nigeria, as discussions on recapitalisation of banks gain some high pitch while the stock market was on the verge of making a rebound. A stable policy and regulatory environment are seen as utmost at this time to enable the market recover to the extent of getting to at least N10 trillion of its previous N13 trillion capitalisation.
The latest development which is still unfolding is believed to be a major issue that can distract market recovery based on the fact that the NSE Council may stick to its succession plan.