BY MICHAEL EBOH
The Nigerian Stock Exchange, NSE, said it will introduce new sets of requirements for companies seeking listing on the secondary segment of the Nigerian capital market.

The NSE further disclosed that it is close to securing a full membership status among the World Federation of Exchanges, WFE.

Speaking at the maiden edition of the NSE’s Chief Executive Officer’s Dinner for chief executives of quoted companies, Mr. Oscar Onyema, Chief Executive of the NSE, said that the new listing requirements is part of its commitment towards championing Nigeria and Africa’s economic growth and development.

He said the NSE has already commenced interaction with key stakeholders in the capital market on ways to develop rules and initiatives that will be beneficial to all stakeholders in the market. Onyema noted that the new listing requirements is part of a number of initiatives to be introduced by the NSE within the next couple of months, designed to make the Nigerian market a gateway to the African market.

The other initiatives, according to him, include: the proposed market segmentation, launch of three new products before the year 2015, creation of rules facilitating share buy-back by quoted companies, and activating an improved information technology platform among others.

He explained that the market segmentation will help consolidate a number of sectors currently listed on the NSE, and also enable it highlight four priority sectors — Agriculture, upstream oil and gas, telecommunication and the utilities — critical to the NSE and the development of the Nigerian economy. He noted that these four sectors are major priority in its quest to attract new companies to the NSE.

He said, “We have already started getting in touch with a number of companies, explaining to them the value proposition of being listed on the NSE. To find out how we can bring them to participate in the market, to help them create wealth and have access to proper capital formation.

“There are so many things we can do and are already doing to attract companies to come to the market. We are building a strong pipeline and really, the decision as to when a company comes to the market is dependent on the company. Companies look for market conditions that are perceived as being favourable to them.”

“Our job is to make sure that the pipeline is reached and when they ready they get listed.”

On the issue of the World Federation Exchanges, Onyema said that the NSE have already started putting in place certain measures in that regards, following a recent meeting in South Africa, were it was told by officials of the WFE what to do to become a full member.

He said the NSE is partnering with world class stock exchanges, learning their processes and other activities that will help it achieve its aim.

Onyema further stated that the NSE has achieved 95 per cent compliance by companies in the presentation of their 2010 financial statement.

“We are looking at turning things around for our listed companies. We want to be an advocate for them. We want to make sure that companies listed on the NSE are realising certain value added services, one of them being advocacy.”