The Nigerian Stock Exchange: Campaign to secure passage of Demutualization Legislation

SITUATION

The Nigerian Stock Exchange (The Exchange ) now the NGX Group  had hitherto operated as a company limited by  the guarantee of its members. This   posed several legal restrictions, hampering its ability to operate competitively and profitably as a company limited by shares. 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 demutualized entity.

TASK

In July 2017, The Exchange  mandated  C&F Porter Novelli to serve as its adviser in securing passage of  the Demutualization of The Nigerian Stock Exchange Bill, 2017 (the “Bill”). The scope of work included provision of  technical and other assistance and dealing with lobbying and other public affairs  issues . The first half of 2018 was set as the deadline for securing passage of the bill: first half of 2018.

APPROACH

Two major objectives were identified for the campaign as follows: creating  a positive legislative environment for expedited passage of the Bill; and facilitating  the process of reaching common grounds between key members of the legislature and other key stakeholders. Stakeholders were identified , followed by a stakeholder mapping(Baseline  Assessment) which led to a distillation of stakeholders ‘expectations in terms of  issues and challenges. The strategic framework entailed construction of  bridges of understanding amongst the various  stakeholders. Tactics deployed included consensus building,  lobbying, mobilisation of opinion formers, and media relations.

RESULTS

Consensus was successfully achieved across different stakeholder groups. In line with the desires of the NSE, support was also garnered among the capital market players, the media, and commentators. The bill was  passed by the National Assembly and assented to by  the President who  signed  it into law, thus leading to the enactment of the  “Demutualisation of Nigeria Stock Exchange Act  2018.