By NKIRUKA NNOROM

Shareholders in the Nigerian capital market have risen in support of the latest Federal High Court’s judgment that set aside the audit report ordered by the Securities and Exchange Commission (SEC), on the affairs of the Nigerian Stock Exchange (NSE) under its former Director-General, Professor Ndi Okereke-Onyiuke, saying that it was commendable.

Reacting to the development, Mr. Olufemi Timothy, said, “The judgment is well deserved because the audit and everything surrounding the sack of the former NSE DG did not follow due process. It is good for our country. All the wrongs that have been done in the capital market must be corrected.

Speaking in the same vein, Sir Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigeria, said the judgment was expected since the report was not transparent.

He noted that the audit report which was carried out under the leadership of Arunma Oteh at the SEC did not follow due process.

On the possible impact on the capital market in the remaining part of the year, he said the economy would determine the performance of the market.

The National Chairman, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie noted that the judgment was for the good of the generality of investors, adding that the former Director General of NSE was not allowed to defend herself before the audit report was made public.

He said the ruling would not erode the confidence in the market, but rather, will strengthen it.

A Federal High Court sitting in Lagos had through Justice Charles Archibong  overruled the report which indicted the former DG of misappropriating funds belonging to the NSE, noting that it did not follow due process and was in breach of Section 36 of the 1999 Constitution.

The court in a ruling on an application brought by Prof. Okereke-Onyiuke challenging the legality of the audit report, declared it void because she was not allowed to present her reaction or defend herself before the audit report or its interim version was put in the public domain.

The court also noted that SEC (defendant) has no authority, jurisdiction, power or control over the plaintiff who is no longer the chief executive officer of the Nigerian Stock Exchange, adding that in the instance therefore, any invitation or summons from the commission in that regard may be honoured by her or discountenanced as she chooses.

The judge, however, stated that nothing in the ruling precludes any legitimate investigation into the affairs of the NSE that is untainted by the highly politicised audit exercise referred to in the present suit.