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Aig Imoukhuede To Face 1 Trn Capitalisation Target Challenge

Aig Imoukhuede To Face 1 Trn Capitalisation Target Challenge
THE emergence of Mr. Aigboje Aig-Imoukhuede as

the President of the Nigerian Stock Exchange,

NSE has been described as a good omen for the

Nigerian capital market. it is expected that he will

bring his vast experience to bear, to surmount

some of the challenges facing the stock exchange

and the market in general

The new President came on board when the

stock market is gradually regaining investors'

confidence after the market crashed in 2009. The

crash of the Nigerian capital market was

unprecedented in its historic evolution since 1960.

The market capitalisation nose-dived from all

time high of N13.5 trillion in March 2008 to less

than N4.6 trillion by second week of January

2009. However, the market has regained about

195 per cent from when it crashed in 2009.

Market capitalisation is the total value of all

stocks quoted on the NSE and is derived by

multiplying the all prices of shares quoted on the

exchange and the issued shares of the


Besides, the All Share Index, ( a measure of the

general price movement
) also plummeted from

about 66,000 basis points to less than 22,000

points in the same period. However, the index

has regained over 19000 basis points from when

it crashed in 2009 to close last week at 41,103.94


Some of the challenges that Aig-Imoukhuede are

expected to surmount include the actualisation of

1 trillion mark capitlistion,which the NSE has

set to achieve by 2016. It is an arduous task to

overcome as Nigerian stock market currently

lacks breadth and depth of securities.The

companies listed on the exchange have

inadequate capacity to take the market to that


Other challenges before the new President include:

how to attract more companies to get listed on

the exchange; demutualization (public listing );

capitalisation of dealing members, enlightenment

programme ; product innovations, etc.

The issue of attracting more companies to list on

the NSE is receiving the Federal Government and

National Assembly support. There is a Private

Companies Conversion and listing Bill before the

National Assembly. The purpose of the Bill is to

compel private companies whose shareholders

funds exceed N40 billion or whose annual

turnover exceeds N80 billion or its total assets

exceed eighty billion, to convert to public liability

company and get its shares listed on the NSE.

The Bill has undergone second reading and soon

will go for public hearing.

Also, there have been concerted efforts by

government agencies to ensure that newly

privatized power companies are made to list on

the exchange.

It will be recalled that the NSE on Wednesday 24

September, officially install Aigboje Aig-

Imoukhuede as the President of the exchange. He

succeeded the out gone President and Africa's

richest man, Alhaji Aliko Dangote.

Notwithstanding the challenges, operators in the

market have shown their support for the new

President, who is expected to lift the exchange to

a new height.

Aig-Imoukhuede, the man, who is regarded as the

most famous alumnus of a Tier-1 Access Bank

Plc, has begun a tenure that many operators in

the Nigerian capital market see as one that will

provide a new and energizing chapter for the

exchange. This belief is largely founded and

driven by the fact that the man, who along with

his Deputy Managing Director and current Group

Managing Director/CEO of Access Bank, Herbert

Wigwe, transformed Access Bank to what it is

today. He is known for his deep and elaborate

application of innovative change management

principles, and particularly for bringing an exciting

leadership style in his many previous roles at the

top, the most famous of which is the

transformational leadership that took place in his

12 years at Access Bank.

Aig-Imoukhuede was instrumental to the

transformation of Access Bank. beginning with the

transformation of Access Bank from a lowly-rated

Nigerian bank into one of the leading African

financial brands with his deputy, Herbert Wigwe,

every of his touch and initiative delivered superior

value to stakeholders and the African continent.

Specifically, Aig-Imoukhuede, steered the affairs

of the Bank off the storm and turned the perennial

loss-making institution into a profit making

venture. Interestingly, in his first year at the

helms of affairs, the Bank recorded a Proftit

Before Tax, PBT of N1billion, an amount which

was more than the total profit recorded by the

Bank in its entire 13 years of operation before the

appointment of Aigboje and Herbert, which

marked the creation of value for the Bank's


Aig-Imoukhuede, is an exemplary business leader

whose achievements have earned other African

professionals the admiration and respect of the

international business community.

General expectation

After his retirement from Access Bank as Group

Managing Director in December 2013, general

expectation was that he would be named the next

Governor of the Central Bank of Nigeria, CBN

because of his excellent pedigree and

accomplishment. Aig-Imoukhuede is a noble and

extraordinary business leader with a special

capacity to inspire others to greatness.

A quintessential banker and outstanding manager

of resources, his uncanny ability to bring dreams

alive has earned him a pride of place in the

chronicle of successful corporate restructuring in

the world, and the transformation story of Access

Bank under his leadership was listed a case study

for MBA students in leading Business Schools

across the hemisphere.

Access Bank which is now credited with the most

successful growth trajectory in the history of

banking in Africa and perhaps in the emerging

markets was incorporated in February 1989 as a

privately owned commercial bank obtained a

banking licence and commenced business in May


Banking licence

The Bank was converted to a public limited

liability and was listed on the Nigerian Stock

Exchange in November 1998. Until March 2002

after the recapitalisation of the Bank when

Aigboje Aig-Imoukhuede was appointed by the

Bank's Board of Directors alongside his partner,

Herbert Wigwe who currently serves as the

Bank's Group Managing Director with a clear

mandate to reposition the Bank as one of

Nigeria's top 10 Banks by 2007 to salvage its

dwindling fortune.

Under the watchful eyes of Aig-Imoukhuede,

Access Bank emerged from 65th position in 2002

to rank amongst bank top 10 banks in Nigeria

before the banking consolidation. Subsequently,

the bank went ahead to acquire Capital Bank

International and Marina International Bank to

meet the capitalisation requirements.

Aigboje's acumen and resourcefulness have not

only nurtured his personal vision to success but

served the Nigerian nation in different capacities

and contributed significantly towards building a

better world for the habitation of mankind. Most

recently, Aig-Imoukhuede who is a member of the

National Economic Management Committee,

dedicated to shaping national economic policies

also served at the Chairman of the Fuel Subsidy

Verification and Repayment Committee.

Consistent with his reputation, he made success

of the herculean task which brought huge

discomfort to his family and threat to his life by

saving the country of a whooping sum of N1

trillion when he blocked the channels through

which our beloved country is fleeced of her


He toiled day and night, forensically combing

through paper works and activities of interested

parties with members of his committee, to

unravel the misery behind the yearly ballooning of

Fuel Subsidy Repayment that has consistently

seen it over-shooting budgetary provision

annually.Therefore, it is expcted that he will

contribute greatly to lift the exchange to a greater


A team player, who does not take personal credit

for collective accomplishments, he openly

acknowledged the contributions of every member

of the presidential committee and their selfless

efforts at nation building.

An alumnus of the Harvard Business School and

law graduate of the University of Benin who

started his career in the Legal department of

Continental Merchant Bank discovered early

enough that he enjoyed making deals than doing

legal works, and quickly transited to core

banking. He spent over 19 years of professional

and senior management banking experience at

Guaranty Trust Bank (now GT Bank), where he

was Executive Director superintending the Public

Sector Group before resigning in February 2002 to

lead a team of other professionals to reposition

Access Bank for global recognition.

Global recognition

It will be recalled in Sandton, South Africa, at the

Johannesburg Stock Exchange, Aig-Imoukhuede,

who was then the First Vice President of the

Nigerian Stock Exchange, was on centre stage.

On the occasion of the third, Building African

Financial Markets Capacity Building Seminar

(BAFM), hosted by the Johannesburg Stock

Exchange (JSE) and African Securities Exchange

Association (ASEA), with the support of the World

Bank Group, he presented a keynote address

which touched on what seemed like a prelude to

what we can expect about the way he thinks the

financial markets, particularly stock exchanges

should work to create wealth in society.

In the address entitled: Africa Rising - The Role

of Securities Exchanges, Aig-Imoukhuede, lawyer,

consummate banker and a major player and

influential person in the Nigerian economy, could

not pass over an opportunity to express the

broadness of his thinking about the role of wealth

in society and how those who are in positions to

act can broaden their intervention in society.

He said: "As children, citizens and businessmen

and women of this amazing continent [Africa] that

is often referred to as the 'last frontier', we can

take from others' experiences, but we must do

what is right for the future of our nations and our


"The world is getting flatter every day, and with a

soaring world population we must facilitate the

drive for wealth creation for our own people, while

providing the platform to which global savings

can be channeled. We must use this opportunity

to partner with each other, to enable us further

unlock our continent's growth potential, and

advance the development of our financial and

capital markets," he further said.

source is vanguard


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