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NSE: Ikazoboh, Stockbrokers Face-off Deepens

By on April 24, 2011

The leadership crisis rocking the Nigerian Stock Exchange (NSE) took a different dimension last week on the trading floor of the Exchange when brokers refused to accept that the Interim Administrator, Mr. Emmanuel Ikazoboh, be introduced before the newly appointed Chief Executive.

Ikazoboh and dealing member firms have been involved in a battle of wits in recent times over his controversial appointment to council of the Exchange at the expiration of his tenure.

He had wanted to close the market for the day to allow members assemble at its 11th floor for the listing ceremony of the Assets Management Company of Nigeria (AMCON) bonds.

But the brokers rejected this move by shouting him down and asking that the chief executive be introduced first and then the brokers to the AMCON.

The managing director of MBC Securities-brokers to AMCON, on mentioning the name of the chief executive, Mr. Oscar Onyema, got a standing ovation.

Ikazoboh who tried to interject the MBC Securities MD was booed and again shouted down. A visibly bewildered Ikazoboh then beckoned to Onyema to close trading before proceeding to his office.

The Association of Stockbroking Houses of Nigeria (ASHON) had the previous week petitioned the Securities and Exchange Commission (SEC),  faulting the  decision to allow the Interim President of the Nigerian Stock Exchange (NSE),   Mallam  Ballama Manu and Ikazoboh , to remain on the Council of the Exchange.

The interim management took over the running of the NSE last August following the intervention of the SEC. The interim management was mandated, among others to appoint a new chief executive officer for the Exchange.

Although a new CEO has assumed office since April 4, 2011, SEC explained recently that   a lot more work needed to be done to put the Exchange on a sound footing and  directed  the council to  admit some professionals, as public interest members, to strengthen the Council and support the new management team.

“All the SEC-nominated members, including Messrs Manu and Ikazoboh, shall be on the Council pending the election of a new council and are charged with working with existing Council members,” SEC had said.

However, ASHON, which is the umbrella body for managing directors of stockbroking firms, in a letter dated April 13, 2011 said the Commission was breaching stockbrokers’ right as shareholders/members of the exchange with that directive.

“Our position is that the Interim Administration has ended with the new CEO. The attempt to perpetuate the continued stay of the Interim Administrator as deputy of the NSE President  is not only illegal, but high handed.

Responding to the development, SEC’s Head of Media, Mr. Lanre Oloyi  had told THISDAY that  the directive that  Manu and Ikazoboh  should remain on the Council is an interim arrangement.

Source : Thisday