NSE is broke, says Dangote
Cover StoriesAug 3, 2010

NSE meeting its obligations – GM
By Omoh Gabriel
President of the Nigerian Stock Exchange (NSE), Alhaji Aliko Dangote, yesterday revealed that the NSE is flat broke and financially down to the point of not being able to meet its to stakeholders in the capital market.
He accused NSE’s management of dipping its hands into the finances of its subsidiary, the Central Securities Clearing System’s (CSCS) accounts to borrow N 900 million to support its cash deficit position.

Dangote further revealed that the NSE is indebted to the tune of N 119.5 million to Accenture auditing firm and that it has decided to stop additional work on executive selection, trading platform selection completion and implementation of the operating model for which the Exchange engaged its services, until all outstanding invoices are duly paid.
This, according to him, was contained in a letter addressed to the Council of the NSE on June 9, 2010 and signed by the company’s Country Managing Director, Niyi Yusuf.
The letter reads in part: “As agreed in the contract with the NSE, our payment were to be made in instalments and based on invoices which are payable upon presentation.

“However, despite all the necessary invoices, Accenture is yet to receive any payment on all outstanding invoices. We have written formal letters of reminder of this indebtedness to the Management of the NSE to no avail.”
In its reaction the NSE General Manager,  Mr. Sola Oni, said: “The Nigerian Stock Exchange is not insolvent. The organisation is meeting all its obligations as at when due.

“The staff are not owed salaries and allowances.  The retirees receive their cheques promptly. The Exchange does not owe any bank or individual. If there is any form of owing it could be that such a company is handling project that has not been completed. Even at that, the Exchange must have made some pre-payment.
“No organisation in Nigeria is fully insulated from the effects of global market down turn. The Exchange is certainly affected.”

http://www.vanguardngr.com/2010/08/03/nse-is-broke-says-dangote/

Who made it broke?and y r they telling us?like we care

the stench and depth of corruption in Nigeria is unbelievable

EVERY government Agency is getting broke, from NNPC to NSE,

[center]NSE’s 9-Month Accounts Show N2.2bn Loss
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By Goddy Egene in Lagos and Onwuka Nzeshi in Abuja, 08.11.2010
Fresh facts have emerged on the financial position of Nigerian Stock Exchange (NSE) showing that it recorded a loss of N2.723 billion as at September 30, 2009, according to information from the management accounts obtained by THISDAY yesterday.

SEC last week removed Prof. Ndi Okereke-Onyiuke over allegations of financial infractions and replaced her with Mr. Emmanue Ikhazoboh as the Interim Administrator.
The Director-General of SEC, Ms Arunma Oteh, said last Thursday that the commission would launch a probe into financials of the exchange to ascertain the veracity of the allegations.
The management account of NSE for the nine months ended September showed a loss of N2.723 billion.

According to the accounts, while the exchange recorded an income of N2.176 billion, its total expenditure was N4.9 billion leading to a loss of N2.723 billion.
The NSE had expected an income of N5.849 billion for the period but ended with only N2.176 billion. The highest income of N882 million was realised from transaction levy. This was followed by N628 million made from annual listing fees, while N280 million came from entrance levy. Also, the exchange made N207 million from interest on fixed deposit and N113 million from sundry income.

However, the NSE expended N1.225 billion on salaries and allowances, N582 million on contribution to gratuity and pension fund, N488 million on depreciation and N468 million on market development expenses.
Apart from N468 million expended on market development, the NSE spent N379 million on office/equipment/automate trading system/central securities depository.  Business travel (overseas) consumed N217 million, business travel Abuja N56.3 million and local travel N56.6 million. A total of N208 million was spent on public enlightenment, while N189 million was expended on staff training and development among others.

Business mogul Alhaji Aliko Dangote had in a petition to SEC alleged that the NSE was insolvent as was unable to meet its financial obligations. But the exchange denied the allegations, despite Dangote’s insistence of the financial crunch at the NSE.
To prevent the situation from snowballing into a major crisis, SEC intervened last week by removing Okereke-Onyiuke and Dangote.

Meanwhile, Oteh confirmed yesterday that about 260 individuals and corporate organisations operating in the stock market will soon be arraigned before the Investments and Securities Tribunal (IST) over their alleged involvement in stock manipulation, insider dealings and other sharp practices at the capital market.
The allegations came on the heels of the crash at the stock market in the wake of the global economic meltdown during which the value of the stock market fell from a peak of   about N12 trillion in March, 2008 to rock bottom of N5.5 trillion within eight months.

Oteh confirmed the planned prosecution of offenders at a meeting with members of the House of Representatives Committee on Capital Market. The decision to prosecute the offending individuals and organisations, Oteh said, followed a series of complaints from investors about sharp practices that took place at the stock market.
Chairman, House Committee on Capital Market and Institutions, Hon. Umar Jubril, said the meeting with SEC became necessary following the sweeping changes made by SEC on the leadership of the Nigeria stock Exchange.

Before the closed door session, Oteh explained that SEC as the regulator of the capital market took some  drastic decisions recently on the Stock Exchange because it cannot afford to turn a blind eye to the various abnormalities taking place at the market, particularly when its core mandate is to protect the investors and the interest of the general public.
The SEC boss disclosed that a lot of Nigerians were severely affected by the crash because over the last few years a number of them invested in shares and stocks. According to her, more than seven million investors who invested in the market directly lost their investments due to this unprecedented crash, a situation that exposed the fragility in investors’ confidence.


http://www.thisdayonline.com/nview.php?id=180455

Well, the truth is finally coming out. Nigeria as a country has been broke for year, people just failed to see it. If A Senator can earn in excess of $1.7m salary, what do you expect. The country is downright finished and I think we should all start accepting that as FACT

No news. I want to hear that our oil wells have dried up so that all these politicians killing themselves to have the chance to loot the national treasury will cease. Once the national treasury is empty, it will not be attractive to the criminals, called politicians any longer. And then, we shall have credible persons,credible elections and credible leadership.

jamace:

No news. I want to hear that our oil wells have dried up so that all these politicians killing themselves to have the chance to loot the national treasury will cease. Once the national treasury is empty, it will not be attractive to the criminals, called politicians any longer. And then, we shall have credible persons,credible elections and credible leadership.

I Just hope it is in my lifetime sha

snowdrops:

the stench and depth of corruption in Nigeria is unbelievable

Say that again

i must say, i've been wondering how nigeria managed to elude the global financial meltdown that swept over europe and the US?

the suffering would have been too much sha. even oyibo dey feel am these days.


was this statement why dangote was fired?