Stock Exchange: Group Demands Onyema’s Resignation As CEO

By Tosin Olatokunbo

The appointment of Oscar Onyema as Chief Executive Officer, Nigerian Exchange, NGX violates extant rule according to Nigerians for All Nigerians, NAN a rights group, which called on him to step down from his position.

Onyema who served as chief executive of the Nigerian Stock Exchange, NSE was appointed into the position in April this year, after the demutualization of the NSE. He had completed his mandatory 10-year term as NSE boss.

NAN said his appointment and the listing of by introduction of the shares of the NGX on the main Board of Nigeria Exchange Limited with effect from October 13, 2021, violates the Nigerian Investments and Securities Act

The group, in a statement by Dele Ajanaku, its Secretary General said, “the impending listing by introduction of the shares of NGX Group on the main Board of NGX ltd with effect from October 13, 2021 vis-a-vis Mr. Onyema’ s portfolio in the two companies will be a violation of Rule 184(2)(a) on the status of Mr. Oscar Onyema as the CEO of NGX Group while also serving as a Non-Executive Director of NGX Limited.”

“Rule 184 (2) states that a securities exchange shall have a code of conduct for its council members or Board which shall be approved by the Commission and shall contain provisions that the council members or Board shall not be staff of a quoted company and its subsidiaries.”

Ajanaku stated further that, “te purpose of this provision is to forestall a situation where a Council or Board member of an Exchange would be in a position to extend special privileges or exercise undue influence towards a listed company which he/she works for.”

“In the scenario under review, by virtue of his position as CEO of NGX Group, Mr. Onyema is a staff/employee of the company. Given that he also serves a non-executive on the NGX Ltd, the Exchange on which NGX Group is set to be listed, Mr. Onyema would (if permitted to hold both portfolios), be in contravention of Rule 184(2).

““it is recommended that the Commission should request Mr. Onyema to relinquish one of the portfolios he is currently occupying so as to comply with Rule 184(2),” NAN said.

NGX had in a message posted on its website in April said “following the successful demutualisation of The Exchange, Mr. Onyema has transitioned into the Group Chief Executive Officer (GCEO), Nigerian Exchange Group (NGX Group) Plc.”