A Market in Search of a Helmsman
The succession plan in the Nigerian Stock Exchange (NSE) takes a new dimension as the council of the exchange recently forwarded the name of the selected candidate for substantive director general to the Securities and Exchange Commission (Sec) for approval. KAYODE OGUNWALE looks at the intrigues surrounding the development.
RECENTLY, the Nigerian Stock Exchange (NSE) said it has completed a part of the multi-stage process for the selection of Chief Executive Officer (CEO) for the exchange and the name of the recommended candidate has been forwarded to the Securities and Exchange Commission (Sec) for approval.
The council is currently awaiting approval of SEC. Furthermore, the council has reached an advanced stage in the selection process of the three executive director positions. It is expected that this process will be completed this month. The exchange expects that the persons engaged for all four positions will assume duties no later than April 1.
On August 5, 2010, the Sec notified Professor Ndi Okereke-Onyiuke the former director general of the exchange, that she has been removed from the position.
Sec claimed that the Investment and Securities Act (ISA) 2007, gives it the responsibility for safeguarding the interest of investors.
Under the powers vested in the commission by ISA, the commission appointed Mr. Emmanuel Ikazoboh an interim administrator to manage the day to day affairs and operation of the exchange. The interim administrator fills the role until conclusion of the recruitment and assumption of duty of the substantial director general.
The position of the exchange to get the approval of Sec is in accordance with previously agreed procedures, that the apex capital market regulator should give its approval to any candidates the exchange intends to hire prior to their engagement by the NSE.
The exchange has adopted an entirely auditable, thorough, and transparent multi-stage process to ensure that the best talents are recruited for the four available top management positions which include chief executive officer; executive directors for listings; strategy and business development, as well as market operations and information technology.  
Nigeria, Africa’s most populous nation and one of the continent’s largest economy started by placing advert in the news paper for chief executive officer, executive director, market operations and information technology, executive director, listings and executive director, strategy and business development in June 2010 in order to implement a strategic program for national development and growth that includes diversification of the economy and reform of its financial system.
The exchange is the equity and debt exchange for Nigeria’s leading organisations, Inexistence since 1960, and with annual volumes of up to 4 billion securities transactions, the NSE is transforming to increase the depth of Nigeria’s capital market and improve access to liquidity for listed organisations.
The new chief executive officer will establish and execute plans to achieve the strategic objectives of the exchange including competitiveness, operating efficiency, diversification and aggressive growth. The chief executive officer will provide insight and directive to increase the liquidity and depth of Nigeria’s capital market.
Sec’s Concerns
The Securities and Exchange Commission (Sec) was particularly concerned about recent reforms at the NSE and demanding for a credible succession plan which would lead to the emergence of a new director general. The commission appears to be worried about the ongoing personnel restructuring at the NSE and is seeking assurances that its succession plan would in the end produce a credible candidate to oversee the affair of the exchange.
Sec was seeking details of the reforms programme by the NSE in order to ensure that it does not preempt that of the Sec, as contained in the Dotun Sulaiman report on capital market structure and processes.
Sec had earlier said, a “Proper and fit” can only be achieved through international best practices. Speaking during the presentation of new rules of the commission last year, Arunma Oteh, director general of Sec, said the process must be advertised internationally, in order to give numerous candidates opportunity to participate.
Oteh explained that the commission was following the selection process closely, adding that it is important that concerns are not raised by stakeholders at the end of the exercise.

Could Onyema become new DG?
A source says Oscar Onyema, the chief administrative officer of the American Stock Exchange (AMEX), will become the substantive managing director/chief executive officer of the exchange, Onyeama was one of 131 who applied for the job and selected following a rigorous selection process.
His selection by the council of the exchange has already been communicated to the Sec who is understood to also want to conduct its own independent search on the candidate.
Under the Investment and Securities Act of 1999, the SEC is empowered to register principal members of the NSE. The long search for a substantive director general for the exchange was concluded early December 2010 when the recruitment panel saddled with the task short-listed three names for the exalted job.
Mr. Oscar Onyema is a senior vice president and chief administrative of the American Stock Exchange. Mr. Onyema joined the Amex in January 2001, and has served in various positions, most recently as Vice President and Chief Administrative Officer. Before joining the Amex, Mr. Onyema worked at the New York Mercantile Exchange (NYMEX) as Senior Analyst, Business Planning and Development. He also worked at DPMS (IBM Business Partner) as a Marketing Executive marketing IBM mid-range systems. Mr. Onyema received an MBA in Finance and Investments from Baruch College in New York City. He served as an adjunct lecturer at the Economics Department of Pace University for five years, and is a frequent public speaker on market structure and market data issues.

Stakeholders Reaction
A stockbroker who pleaded anonymity said the ongoing succession matter is a good one since the Sec has indicated interest in being involved in appointment of a new CEO and other executives. He stated that the Nigeria stock market has grown beyond the stage where the director general can single-handedly choose a successor.
He added that the investing public is looking forward to having the best candidate fill the vacant position at the exchange through due process.  Another stockbroker said the screening that led to choosing of the name forwarded to the Sec is not transparent.
He stressed that, “if he confirm their will be changes on the exchange base on his experience and i believe that he will work to reposition the exchange especially on the issue of transparency, corporate governance and integrity”
On his own part, Mr. Aderemi Oyepeju, the chairman Ibadan Zone shareholders’ Association of Nigeria said if he had his way he will prefer somebody who is working in Nigeria not because of any other thing but because they know the weakness of the market and the terrain in America is different from Nigeria.