DEMUTUALISATION BILL OF THE NIGERIAN STOCK EXCHANGE
Category :PUBLIC AFFAIRS
- The Nigerian Stock Exchange (NSE) has hitherto operated as a company limited by guarantee, which poses several legal restrictions, hampering its ability to operate competitively and profitably as a limited liability entity. In order to convert into a company limited by shares, the sponsorship of a demutualisation legislation via a Private Member Bill was seen as the most effective and time-efficient means of facilitating the smooth transition of the NSE into a demutualised entity.
- C&F Porter Novelli was tasked with developing and executing an intensified campaign to secure the passage of the bill.
- A baseline assessment was carried out to identify all the issues pertaining to the bill, by monitoring and reviewing all actions and opinions of the relevant stakeholders: the National Assembly, the NSE, the executive branch, the media, capital market players and commentators in the media. This revealed: differences of opinions on tax issues, low level of understanding of demutualisation, the existence of an unfavourable version of the bill, concerns about the transparency, ownership and operation of the NSE post the demutualisation.
- Based on the assessment, appropriate stakeholder groups were engaged to manage their perception, opinions and their position on the demutualisation bill. Direct engagement with the commentators, National Assembly, the capital market and the media were carried out on several stages.
- Consensus of opinions was successfully achieved across different stakeholder groups, particularly the National Assembly. Support, in line with the desires of the NSE was also garnered among the capital market players, the media and commentators. The bill was successfully passed at the National Assembly and assented by the president.