*The Decisive Role Of Leadership In The Capital Market Crash Of 2006-2009 In Nigeria!*

*Preface*

First thing first, I count it a great privilege to offer myself to dig deep into the archives of history to discus this topic on leadership role of the "Capital Market Crash of 2006 - 2009" in Nigeria. It is my firm belief that the leadership quality of the then Director General of the Nigerian Stock Exchange (NSE), Dr (Mrs) Ndi Okereke-Onyiuke, that span January 2000 to August 4th, 2010 brought many positive results that stood the test of time till date after her tenure, this I will expose in the course of this work. It is within my jurisdiction as the author here to set in right perspectives by taking a detailed look into the genesis of the crisis that eventually rocked the stock market to its foundation and left it in comatose today far from the bubbling era of yearly IPOs that kept the investing public glued to their TV sets and newspapers monitoring stock reports updates, and creating almost national passions to invest their hard-earned monies in the profitable and money-spinning capital market.

*Introduction*

Before I proceed, let's understand what the Stock Market is all about. *The NSE is a company limited by guarantee and led by a body of individuals and organizations called the "Council of the NSE".* Its day-to-day affairs are run by a management headed by the Director General (the appellation CEO or Chief Executive Officer was added by the former head, Ndi Okereke-Onyiuke). As a rule, the NSE has a President with two Vice Presidents to also function in leadership roles especially during shareholders meetings, conferences and other capacities as deemed fit by the management they are also part of the Council of Management of the NSE. The NSE is not an organization that comes under the direct oversight of the Presidency or any government institution with the exceptions of the SEC and the National Assembly. This simply means that the NSE is a Self-Regulatory Organization (SRO), making and enforcing rules for its members which cannot be dictated to by any external statutory bodies except for compliance to the rules governing it's mode of operations as monitored by the Security and Exchange Commission (SEC) and in case of abuse of office or statutory duties can be summoned by the committee of capital markets regulation within the National Assembly. It regulates its members (brokerage firms). It also regulates its listed companies to ensure compliance with listing rules. The Stock Market is a market for securities transaction, that is, a place where securities (shares, bonds, equities) are bought and/or sold for easier trading. The Stock Exchange can also be a mechanism (barometer as some would suggest) which can measure and detect the symptoms of an impending economic boom or decline long before the predicted prosperity or decline actually occurs. This simply implies that "a healthy Stock Exchange means a booming and buoyant economy while an unhealthy stock market signifies an ailing economy".

The question now is, *"Is The Nigerian Stock Exchange (NSE) The Major And Only Player/Authority In The Capital Market?"* This is where we now expatiate further that as much as the NSE is mostly talked about in the day to day activities at the Capital Market, it is not the only major player but a nucleus in the family of players in the industry. The Securities and Exchange Commission (SEC) comes to mind here but before then, let's consider this; in 1973, the government promulgated the Capital Issues Commission (CIC) Decree of 1973, which eventually metamorphosed into the Securities and Exchange Commission (SEC) we have today to give legal backing and more power to the commission in place of the capital issues committee so as to enhance the implementation of the Nigeria Enterprises Promotion Decree (NEPD). However, the CIC continued to operate as a department in the CBN but had the function of determining the price, timing, and the amount of offers for sale or subscription as set up by the Financial System Review Committee headed by Dr. Pius Okigbo (the then Economic Adviser to the federal government). The Okigbo’s committee among other things recommended the following:

i) Facilitate effective management of the economy
ii) Provide non-inflationary support for the economy
iii) Ensure that no viable project is frustrated singly for lack of fund
iv) Achieve greater mobilization of savings and its efficient and effective channeling
v) Insulate the economy as much as possible and as much as desirable from the vicissitudes of the international economic scene.
vi) The establishment of a Securities and Exchange Commission (SEC) to replace Capital Issues Commission (CIC) and the establishment of additional stock exchange. This resulted to the establishment of trading floors at Kaduna, Port Harcourt and the Lagos Stock Exchange (LSE) that was later redesigned as the Nigerian Stock Exchange (NSE).

We must bear it in mind that the *Nigerian Securities and Exchange Commission was established in 1977 by Securities Act of 1979 and re-enacted in 1988 to be the apex regulatory body of the Nigerian Capital Market.* In other words, it is the government regulator of the Nigerian capital market whose legal muscle is derived from the investments and securities act of 1999. This simply implies that the Securities and Exchange Commission is more of a regulatory body and an authority in the affairs of business than the Nigerian Stock Exchange, this I will shed more light on as we move on.

*An Unethical And Political Intervention Into The Affairs Of The Stock Market*

Although the years under review here are between 2006 to 2009 let it be known that the crisis within the capital market dated back to 1996 when there was a political tone to the hierarchy of leadership between the Nigerian Stock Exchange headquartered in Lagos and the hurriedly set up Abuja Stock and Commodities Exchange (ASCE) which was kickstarted as a result of the political motivated Dennis Odife's Report. It must be noted that the highly-controversial establishment of the moribound Abuja Stock Exchange (ASE) was based on the report on capital market reform put together by the committee led by an investment banker and capital market expert, Dennis Odife, was premised on the structure of leadership, both at the Council of the NSE and its management team. They want the Nigerian Stock Exchange to revert back to its original name of Lagos Stock Exchange in order to accommodate the newly formed Abuja Stock Exchange but this was firmly resisted by the well oiled and coordinated management team of the Nigerian Stock Exchange. Hence the need to set up a parallel Exchange at Abuja in order to serve the personal interests of some powerful socio-political elites, and questionable doubts regarding how the Nigerian Stock Exchange was being run at the top level.

To add flesh to this audacious move, Dennis Odife and the rest of his team had already found an ally in the then Director General of the Securities & Exchange Commission, Mallam Suleyman Ndanusa, with the support of the late General Sani Abacha’s administration took an unprecedented step of issuing an order of removal of Alhaji Abdul Razak as the President of the NSE and Ndi Okereke-Onyuike, the Director General. This wrong move was fought by the management of the NSE due to the unity within them and at last it was settle out of court. It is more of "let's create a money making machine like what they have down south in Lagos here up north in Abuja" but it was bound to fail. Thanks to the Lagos team resistance!

The other notable unethical move to undermine the leadership of the NSE, took place shortly after the Odife's drama. It was a well planned rebellion against the Nigerian Stock Exchange, this time around, it came from within the rank and file of the stockbrokers, under the umbrella of the Chartered Institute of Stockbrokers (CIS) then headed by Mr. Remi Bakare, then Registrar of the Institute. It was reported that the CIS had sent a bill to the then House of Assembly, allegedly pushed by Honourable Lanre Laoshe on behalf of Mr. Bakare. The Bill sought to allow the CIS licence the Stock Exchange and other capital market operators. The Bakare-led rebellion was crushed as usual by the NSE as it weighed in on the National Assembly's timely intervention through the House Committees on Human Rights, Legal Matters and Judiciary and other power blocs. The consequences of this ‘unethical initiative’ by Mr. Remi Bakare have proven a lesson on how not to take on the NSE. Others have learnt this lesson well by heart and have chosen to avoid such open confrontations. One big lesson to take from these scenarios is that, *some forces from the political cycle* would always want to influence the decisions and workings of the stock management's team (like it was revealed above) but each time they tried they will always meet an impregnable wall. As you read on, it will be revealed to us how eventually the NSE caved in to external pressures they had hitherto withstood under the leadership of an air tight management team commandeered by Dr (Mrs) Okereke-Onyiuke which reminds me of the popular creed that, "good leadership is everything"!

*The Genesis Of The Capital Market Crises (2006 - 2009)*

One mystery about good leadership is their telepathic relationship to the futuristic effects of what is about to unfold and their creative power to always work out modalities to curtail its damnable consequences. The bullish trend (positive growth, that is when securities are fairing well) and bearish trend (negative growth, that is when securities prices are falling) of the stock market is largely influenced by three factors in the economy which are; political, economical and societal in nature. These market movers can be identified under the followings; Tax regulations, Inflation, Earnings, Interest rates, Domestic political run out, Terrorism and times of war, Oil and energy prices, Crime and fraud, Political and Social Uncertainties, Foreign Portfolio Investors etc. Let me stress that as we have the Central Bank Of Nigeria (CBN) being the authorised regulator of banking activities and other financial institutions in the money market so also we have the Securities and Exchange Commission (SEC) playing the same role too in the capital market and in the process overseeing the activities of the NSE. To prove it further, let's examine the functions of the Securities and Exchange Commission (SEC);

*-Duties and Functions of Securities and Exchange Commission (SEC)*

i. *Investors’ endorsement* thereby enhancing their confidence in the capital market.
ii. It ensures orderly, fair and equitable dealings in securities business.
iii. Promotes capital market growth and development.
iv. It ensures that information on the quoted companies is made available at all times in an efficient manner.
v. It creates the necessary atmosphere for the orderly growth and development of the market thereby giving full effect to the provision of the Decree.
vi. Price determination: this is one of the most important functions of the Securities and Exchange Commission. This is because if prices are not well fixed, the parties involved may not be satisfied.
vii. Above all, it is the apex regulatory body for NSE and its branches to which it is at liberty to delegate powers.

Let's examine the functions of the Nigerian Stock Exchange too for comparison;

*-Functions of the Nigerian Stock Exchange (NSE)*

i. To act as the central meeting place for members to buy and sell existing stocks and shares and for granting quotations to new shares/issues through the provision of new or fresh capital raised through the market.
ii. To provide machinery through stocks and shares for mobilizing private and public savings and making these available for productive investment.
iii. To provide opportunities for the continued operation and attraction of foreign capital for Nigeria’s development.
iv. To facilitate dealings in government securities.
v. To prescribe requirements for new listings and to regulate secondary trading activity and the activities of its dealing members.
vi. To make information on the quoted companies available for fair dealings.
vii. To protect the public from shady dealings and practice in quoted securities with the objective of ensuring fair dealings.

Looking at the above functions of the two bodies, one can tell that the SEC is the Alpha and Omega of operations in the Capital Market and not the NSE which is just a platform for trading that is subject to the regulations issue out by the Securities and Exchange Commission (SEC) in order to guide itself (NSE) aright in its mode of operations.

The genesis of the capital market crises in the years under review (2006 - 2009) came up to public attention shortly after Alhaji Aliko Dangote, then, President, Nigerian Stock Exchange, brought spurious allegations against the leadership of the NSE, (when he petitioned the Securities and Exchange Commission) of financial imprudence that, according to him, has brought The Exchange to the verge of financial bankruptcy. This manner of approach Aliko Dangote took, was a breach against the ethics of business and operations in the industry because besides not notifying the management of this allegation before hand, he went behind to involve Accenture just to prove whatever points he intend to gain by that move. You can visit this link to see the responses to all the allegations raised by Dangote's letter against the NSE here; http://developer.investadvocate.com.ng/2010/08/04/nse-response-to-the-complaint-by-aliko-dangote/

It would be recalled that between 2006 and 2008, the Nigerian Stock Exchange (NSE), became a major channel for portfolio investors. But it was not long before the bubble burst. The fact is *she sounded the warning during this period to the two authorities regulating the affairs of the Capital and Money Markets but somehow they missed the mark and ignored her timely warning.* In her own words during an interview on why the market took a downward trend despite being in the saddle of leadership, she said, *"In the case of Nigeria, government did not make it possible because the bubble burst from the Western world. I saw it coming and I kept telling everybody because our economy depends on importation. We depend on the U.S, UK and other European countries; so, our life was intertwined. We practically imported everything. The problem you talked about first started in the U.S, and two or three years before it got to us I had been warning that it was coming. Nothing was done."*
She went further when asked *what would have been her expectations in terms of taking proactive and preventive measures having foreseen the impending danger,* she opined,

"Yes, our market was bubbling; we were making money and many of our patent companies were being affected in Europe. So it would definitely affect us. The indigenous companies were not affected but the share price movement would affect them because if UAC, John Holt, Guinness, Nigerian Breweries are being affected, there is no way Nigerian companies would not be affected. The wind had started in the U.S, it got to Europe. The impact on Nigeria could be less, but I did not expect that it would not get to us. The foreign exchange market would be the first to be affected and then the banks and the quoted companies. So, if there is recession, it goes around everywhere because both the money market and Equity market work hand-in-hand.*

*So, we were expecting it, but what made it worse — because I expected it to be minimal — was the second coming of banks to the capital market when banks were asked to increase their capital base to N25 billion. In the banks’ first coming (IPOs), Central Bank Governor, Chukwuma Soludo did exceedingly well. Our banks had capitalized. When they did the first coming to the Stock Exchange to raise money, they met the capitalisation benchmark; 23 of the 25 banks made it. The banks got good money and their eyes were opened. They were impressed with the kind of money they raised and what they eventually had in their vaults, so they went back for more money. I kept warning against it."*

Visit here to read more about the warnings she gave the two regulatory bodies, SEC and CBN, in order to avoid the effects of the economic meltdown she foresaw especially between 2006 to 2008; https://m.guardian.ng/business-services/okereke-onyiuke-i-warned-banks-against-raising-idle-funds-but-ego-trip-and-unhealthy-competition/amp/

*-The Amazon In Her Own Script of Leadership/Stewardship*

Here is a woman of substance that brought many firsts and sterling performances to a Stock Market that was under performing among her peers within the African region and beyond. The moment the "Iron Lady" took up the mantle of leadership at the 22-Storey head office of the Stock Exchange, at Custom street, Lagos, on January 2000 till she left in August 4th, 2010, *she had established the Nigerian Stock Exchange as a force to reckon with in the world of "stock markets that generate rich returns on investments for economic growth" of the host country. On assuming duty in 1983, she dazzled the Council and Management of The Nigerian Stock Exchange by strengthening the organisation’s research base. She was highly instrumental to the computerization of the Exchange in 1985, a development which included the creation of “The Nigerian Stock Exchange” All Shares Index - a barometer that gauges the mood of economy. In the same year, she spearheaded the training of potential Stockbrokers by starting off The Stock Exchange’s Authorised Clerkship Examination.* Today, the examination is midwifed by the Chartered Institute of Stockbrokers (CIS). The credit goes to her that Nigeria ’s Stockbrokers have a pride of place in the international stock markets.

She brought her technical know-how to bear on the Exchange at the inception of the Privatisation and Commercialisation Programme of the Federal Government. As the head of the Exchange’s Quotations Department, she was the Chairman for the Technical Committee on Privatisation and Commercialisation (TCPC) now Bureau for Public Enterprises (BPE). Her laudable contributions to the committee’s achievements earned her special commendation from The Exchange and Federal Government of Nigeria.

In April, 1997, her efforts as the Project Director of the Central Securities Clearing System (CSCS) Limited was crowned with success with the commencement of automated delivery that is Central Depository, Clearing and Settlement System. Her concerted efforts with Rasak Oladejo, the Project Director of Automated Trading System (ATS) culminated in the success story of the new trading regime in April, 1999 (T+5) and on March 1st, 2000 (T+3) in line with developments in advanced markets. As an accomplished securities strategist, she emerged as the Chairman of the African Stock Exchange’s Association (ASEA) listing Committee whose mandate is to produce a standardized Minimum Listing Requirements for ASEA Members to facilitate cross border listing in Africa . She has always served on the ASEA Committee on harmonisation of qualifying examination for stockbrokers in Africa .

She was about to retire in September of 2010 after granting a world press conference in July 2009, on her stewardship and intention to work out a succession plan that will take over from her in order to set the Exchange on a path of greatness when the allegations started flying in about the crisis rocking the Capital market especially the Stock Exchange under her charge. The allegations were that she superintended over abusive processes that led to the crash of the capital market that ranges from; stealing of investors’ funds, falsification of records, and insider dealings. She gave her own response that excuse her office from the complicities that led to the crash by citing;

* Poor regulations by the regulatory agencies, the Security and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN), are to blame for the downfall of a troubled market that was already shaken by the 2009 global economic crisis.

* The indiscriminate granting of margin loans by the banks to all manners of investors and market operators. While margin loans by themselves are not bad, because they help to create more liquidity in the market, globally. However, in the case of Nigeria, the banks gave out these loans indiscriminately, and in most cases insisted that such margin loans were used to purchase their own shares;

* Reckless dealings by the banks which drew no sanctions from the regulatory bodies, that is SEC and CBN;

* Unguarded pronouncements by the two bodies, especially the CBN, which she alleged were "wild and irresponsible" was the last straw that tore the market apart. Especially when a certain CBN governor, Sanusi Lamido Sanusi, was being reported as having described the capital market as kalu kalu, a Hausa word implying a casino;

* It was also established by her that SEC was sourcing operational funds from the Stock Exchange that was supposed to be regulated by the SEC. She alleged while presenting her case before the House Committee on Capital Market matters that, "SEC was collecting 0.3% of shareholdings from NSE"

You can visit here to read more about this sub heading; https://www.premiumtimesng.com/business/5007-okereke-onyuike_accuses_oteh_cbn_of_abuses.html

*My Take*

Looking at the cited points above, especially the functions of the SEC and NSE, it would be right to say that there is little she could do to prevent the shady deals that pervade that era when the regulatory body, SEC, is alive and kicking. We must also note that what she predicted as regards the recession that engulfed the capital market and her position on the excesses of investors (especially the banks) were absolutely correct. Also, taking into considerations her timely warnings coupled with the corrective measures she put in place to checkmate the looming danger but was ignored, it will be a great disservice to her efforts for all what she had done to the growth and sustenance of the Nigerian Stock Exchange to allege that Dr (Mrs) Ndi Okereke-Onyiuke, OON was a misfit at the saddle of the Capital Market during her 10 years and 7 months+ as the Director General of the NSE. Her years of professional experience in the New York Stock Exchange were brought to bear on the market, and the NSE recorded an impressive boom. That was when banks fell over themselves in pursuit of enhanced capital from Initial Public Offering (IPOs) and other market derivatives. *The bubble was to burst following the global economic crunch of 2008 through 2009 (which was never her fault);* the NSE took the plunge and many Nigerians especially banks with their alleged malpractices got their fingers burnt. Expectedly, the market was engulfed by an administrative turmoil (bottlenecks) and a controversial government intervention (political influence) few months before the September 2010 official retirement of Okereke-Onyiuke, which saw her exiting the stage on August 4th, 2010!

*The Post Okereke-Onyiuke Plan For The NSE (Demutualisation Policy)*

In a swift reaction to the crises the Exchange suffered but endured as a result of the Abuja Stock Exchange (ASE) and the Chartered Institute of StockBrokers (CIS) rebellion, a rebellion orchestrated by the Ndanusa-led SEC, the Council of the Stock Exchange under the Presidency of Alhaji Abdul Razak and Leadership of Dr (Mrs) Ndi Okereke-Onyiuke in July 2002 had plan to demutualise (or become a company limited by shares with a commercial structure and operations) the Nigerian Stock Exchange. It is said that the Council of the NSE would be restructured. Implementing the demutualization plan would see members of the Council of NSE ‘compensated with the allotment of properly evaluated shares of NSE, commensurate to their hitherto honorary services to NSE. Thereafter, members of the Council of NSE will be restructured to reflect proportionately all the stakeholders or interest groups of the Nigeria capital market and, of course, the shareholders of NSE. Under the Abdul Razak implementation plan, it will be the responsibility of the Council of NSE to assess the value of ordinary shares of NSE, and the proportion in which they are to be held between members of the council of NSE on the one hand and existing ordinary members of NSE. Razak recommended the proportion of 100:1 ordinary share. The essence of this *Demutualisation Policy* of the Dr Okereke-led NSE, is to give Nigerians the opportunity to become shareholders of their own company; they will also get the Annual Reports, and it will become profit making. It would be standardised and controlled because the people that are members would be the general public, companies and individuals. To know more about this demutualisation policy, it's many benefits and why it is still not implemented since 2010 Madam Okereke left office, visit this link; https://m.guardian.ng/business-services/okereke-onyiuke-i-warned-banks-against-raising-idle-funds-but-ego-trip-and-unhealthy-competition/amp/

*Her Legal Battles*

It was a tough and windy road after the Amazon left office as her traducers were hellbent to see her disgraced and probably end up in jail. All the allegations of financial recklessness, manipulations of share prices and the likes tabled before her at the court of law she fought and emerged victorious at the end of the whole case. Eventually she had to settle out of court and even won a N500 million sum against the Securities and Exchange Commission for unlawful removal from office. Another credence to the fact that she was not culpable in all the allegations levelled against her which to me is another plus to her sterling performances and glowing career. To read more visit; https://t.guardian.ng/news/court-dismisses-appeal-against-former-sec-dg-okereke-onyiuke/ and this too; https://trwstockbrokers./2018/03/12/finally-stock-exchange-settles-employment-dispute-with-ex-dg-okereke-onyiuke-others/

*Who Is Dr (Mrs) Ndi Okereke-Onyiuke?*

Born in Bonny, Rivers State on November 2, 1950, Okereke-Onyiuke had her elementary education at Queens College, Enugu before proceeding to City University of New York, USA where she also obtained her MBA, specializing in Finance and Computer Science. She later earned a Doctor of Philosophy as well as Doctor of Administration in Finance and Securities Market from the Graduate School of the City University. Okereke-Onyiuke had been Exchange Services Manager, System Consultant at the New York Stock Exchange before joining the NSE and rose to become its Director General in 2000. Okereke-Onyiuke served as visiting professor for MBA, MBF and MSC classes for the University of Lagos from 1995 to 1997. She served as Exchange Services Manager and Systems Consultant at the New York Stock Exchange from 1976 to 1983. Since 2000, the Exchange witnessed tremendous changes and growth.

@Temitope

tomakint:
*-Duties and Functions of Securities and Exchange Commission (SEC)*

i. *Investors’ endorsement* thereby enhancing their confidence in the capital market.
ii. It ensures orderly, fair and equitable dealings in securities business.
iii. Promotes capital market growth and development.
iv. It ensures that information on the quoted companies is made available at all times in an efficient manner.
v. It creates the necessary atmosphere for the orderly growth and development of the market thereby giving full effect to the provision of the Decree.
vi. Price determination: this is one of the most important functions of the Securities and Exchange Commission. This is because if prices are not well fixed, the parties involved may not be satisfied.
vii. Above all, it is the apex regulatory body for NSE and its branches to which it is at liberty to delegate powers.

Let's examine the functions of the Nigerian Stock Exchange too for comparison;

*-Functions of the Nigerian Stock Exchange (NSE)*

i. To act as the central meeting place for members to buy and sell existing stocks and shares and for granting quotations to new shares/issues through the provision of new or fresh capital raised through the market.
ii. To provide machinery through stocks and shares for mobilizing private and public savings and making these available for productive investment.
iii. To provide opportunities for the continued operation and attraction of foreign capital for Nigeria’s development.
iv. To facilitate dealings in government securities.
v. To prescribe requirements for new listings and to regulate secondary trading activity and the activities of its dealing members.
vi. To make information on the quoted companies available for fair dealings.
vii. To protect the public from shady dealings and practice in quoted securities with the objective of ensuring fair dealings.

Looking at the above functions of the two bodies, one can tell that the SEC is the Alpha and Omega of operations in the Capital Market and not the NSE which is just a platform for trading that is subject to the regulations issue out by the Securities and Exchange Commission (SEC) in order to guide itself (NSE) aright in its mode of operations.

The genesis of the capital market crises in the years under review (2006 - 2009) came up to public attention shortly after Alhaji Aliko Dangote, then, President, Nigerian Stock Exchange, brought spurious allegations against the leadership of the NSE, (when he petitioned the Securities and Exchange Commission) of financial imprudence that, according to him, has brought The Exchange to the verge of financial bankruptcy. This manner of approach Aliko Dangote took, was a breach against the ethics of business and operations in the industry because besides not notifying the management of this allegation before hand, he went behind to involve Accenture just to prove whatever points he intend to gain by that move. You can visit this link to see the responses to all the allegations raised by Dangote's letter against the NSE here; http://developer.investadvocate.com.ng/2010/08/04/nse-response-to-the-complaint-by-aliko-dangote/

It would be recalled that between 2006 and 2008, the Nigerian Stock Exchange (NSE), became a major channel for portfolio investors. But it was not long before the bubble burst. The fact is *she sounded the warning during this period to the two authorities regulating the affairs of the Capital and Money Markets but somehow they missed the mark and ignored her timely warning.* In her own words during an interview on why the market took a downward trend despite being in the saddle of leadership, she said, *"In the case of Nigeria, government did not make it possible because the bubble burst from the Western world. I saw it coming and I kept telling everybody because our economy depends on importation. We depend on the U.S, UK and other European countries; so, our life was intertwined. We practically imported everything. The problem you talked about first started in the U.S, and two or three years before it got to us I had been warning that it was coming. Nothing was done."*
She went further when asked *what would have been her expectations in terms of taking proactive and preventive measures having foreseen the impending danger,* she opined,

"Yes, our market was bubbling; we were making money and many of our patent companies were being affected in Europe. So it would definitely affect us. The indigenous companies were not affected but the share price movement would affect them because if UAC, John Holt, Guinness, Nigerian Breweries are being affected, there is no way Nigerian companies would not be affected. The wind had started in the U.S, it got to Europe. The impact on Nigeria could be less, but I did not expect that it would not get to us. The foreign exchange market would be the first to be affected and then the banks and the quoted companies. So, if there is recession, it goes around everywhere because both the money market and Equity market work hand-in-hand.*

*So, we were expecting it, but what made it worse — because I expected it to be minimal — was the second coming of banks to the capital market when banks were asked to increase their capital base to N25 billion. In the banks’ first coming (IPOs), Central Bank Governor, Chukwuma Soludo did exceedingly well. Our banks had capitalized. When they did the first coming to the Stock Exchange to raise money, they met the capitalisation benchmark; 23 of the 25 banks made it. The banks got good money and their eyes were opened. They were impressed with the kind of money they raised and what they eventually had in their vaults, so they went back for more money. I kept warning against it."*

Visit here to read more about the warnings she gave the two regulatory bodies, SEC and CBN, in order to avoid the effects of the economic meltdown she foresaw especially between 2006 to 2008; https://m.guardian.ng/business-services/okereke-onyiuke-i-warned-banks-against-raising-idle-funds-but-ego-trip-and-unhealthy-competition/amp/

*-The Amazon In Her Own Script of Leadership/Stewardship*

Here is a woman of substance that brought many firsts and sterling performances to a Stock Market that was under performing among her peers within the African region and beyond. The moment the "Iron Lady" took up the mantle of leadership at the 22-Storey head office of the Stock Exchange, at Custom street, Lagos, on January 2000 till she left in August 4th, 2010, *she had established the Nigerian Stock Exchange as a force to reckon with in the world of "stock markets that generate rich returns on investments for economic growth" of the host country. On assuming duty in 1983, she dazzled the Council and Management of The Nigerian Stock Exchange by strengthening the organisation’s research base. She was highly instrumental to the computerization of the Exchange in 1985, a development which included the creation of “The Nigerian Stock Exchange” All Shares Index - a barometer that gauges the mood of economy. In the same year, she spearheaded the training of potential Stockbrokers by starting off The Stock Exchange’s Authorised Clerkship Examination.* Today, the examination is midwifed by the Chartered Institute of Stockbrokers (CIS). The credit goes to her that Nigeria ’s Stockbrokers have a pride of place in the international stock markets.

She brought her technical know-how to bear on the Exchange at the inception of the Privatisation and Commercialisation Programme of the Federal Government. As the head of the Exchange’s Quotations Department, she was the Chairman for the Technical Committee on Privatisation and Commercialisation (TCPC) now Bureau for Public Enterprises (BPE). Her laudable contributions to the committee’s achievements earned her special commendation from The Exchange and Federal Government of Nigeria.

In April, 1997, her efforts as the Project Director of the Central Securities Clearing System (CSCS) Limited was crowned with success with the commencement of automated delivery that is Central Depository, Clearing and Settlement System. Her concerted efforts with Rasak Oladejo, the Project Director of Automated Trading System (ATS) culminated in the success story of the new trading regime in April, 1999 (T+5) and on March 1st, 2000 (T+3) in line with developments in advanced markets. As an accomplished securities strategist, she emerged as the Chairman of the African Stock Exchange’s Association (ASEA) listing Committee whose mandate is to produce a standardized Minimum Listing Requirements for ASEA Members to facilitate cross border listing in Africa . She has always served on the ASEA Committee on harmonisation of qualifying examination for stockbrokers in Africa .

She was about to retire in September of 2010 after granting a world press conference in July 2009, on her stewardship and intention to work out a succession plan that will take over from her in order to set the Exchange on a path of greatness when the allegations started flying in about the crisis rocking the Capital market especially the Stock Exchange under her charge. The allegations were that she superintended over abusive processes that led to the crash of the capital market that ranges from; stealing of investors’ funds, falsification of records, and insider dealings. She gave her own response that excuse her office from the complicities that led to the crash by citing;

* Poor regulations by the regulatory agencies, the Security and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN), are to blame for the downfall of a troubled market that was already shaken by the 2009 global economic crisis.

* The indiscriminate granting of margin loans by the banks to all manners of investors and market operators. While margin loans by themselves are not bad, because they help to create more liquidity in the market, globally. However, in the case of Nigeria, the banks gave out these loans indiscriminately, and in most cases insisted that such margin loans were used to purchase their own shares;

* Reckless dealings by the banks which drew no sanctions from the regulatory bodies, that is SEC and CBN;

* Unguarded pronouncements by the two bodies, especially the CBN, which she alleged were "wild and irresponsible" was the last straw that tore the market apart. Especially when a certain CBN governor, Sanusi Lamido Sanusi, was being reported as having described the capital market as kalu kalu, a Hausa word implying a casino;

* It was also established by her that SEC was sourcing operational funds from the Stock Exchange that was supposed to be regulated by the SEC. She alleged while presenting her case before the House Committee on Capital Market matters that, "SEC was collecting 0.3% of shareholdings from NSE"

You can visit here to read more about this sub heading; https://www.premiumtimesng.com/business/5007-okereke-onyuike_accuses_oteh_cbn_of_abuses.html

*My Take*

Looking at the cited points above, especially the functions of the SEC and NSE, it would be right to say that there is little she could do to prevent the shady deals that pervade that era when the regulatory body, SEC, is alive and kicking. We must also note that what she predicted as regards the recession that engulfed the capital market and her position on the excesses of investors (especially the banks) were absolutely correct. Also, taking into considerations her timely warnings coupled with the corrective measures she put in place to checkmate the looming danger but was ignored, it will be a great disservice to her efforts for all what she had done to the growth and sustenance of the Nigerian Stock Exchange to allege that Dr (Mrs) Ndi Okereke-Onyiuke, OON was a misfit at the saddle of the Capital Market during her 10 years and 7 months+ as the Director General of the NSE. Her years of professional experience in the New York Stock Exchange were brought to bear on the market, and the NSE recorded an impressive boom. That was when banks fell over themselves in pursuit of enhanced capital from Initial Public Offering (IPOs) and other market derivatives. *The bubble was to burst following the global economic crunch of 2008 through 2009 (which was never her fault);* the NSE took the plunge and many Nigerians especially banks with their alleged malpractices got their fingers burnt. Expectedly, the market was engulfed by an administrative turmoil (bottlenecks) and a controversial government intervention (political influence) few months before the September 2010 official retirement of Okereke-Onyiuke, which saw her exiting the stage on August 4th, 2010!

*The Post Okereke-Onyiuke Plan For The NSE (Demutualisation Policy)*

In a swift reaction to the crises the Exchange suffered but endured as a result of the Abuja Stock Exchange (ASE) and the Chartered Institute of StockBrokers (CIS) rebellion, a rebellion orchestrated by the Ndanusa-led SEC, the Council of the Stock Exchange under the Presidency of Alhaji Abdul Razak and Leadership of Dr (Mrs) Ndi Okereke-Onyiuke in July 2002 had plan to demutualise (or become a company limited by shares with a commercial structure and operations) the Nigerian Stock Exchange. It is said that the Council of the NSE would be restructured. Implementing the demutualization plan would see members of the Council of NSE ‘compensated with the allotment of properly evaluated shares of NSE, commensurate to their hitherto honorary services to NSE. Thereafter, members of the Council of NSE will be restructured to reflect proportionately all the stakeholders or interest groups of the Nigeria capital market and, of course, the shareholders of NSE. Under the Abdul Razak implementation plan, it will be the responsibility of the Council of NSE to assess the value of ordinary shares of NSE, and the proportion in which they are to be held between members of the council of NSE on the one hand and existing ordinary members of NSE. Razak recommended the proportion of 100:1 ordinary share. The essence of this *Demutualisation Policy* of the Dr Okereke-led NSE, is to give Nigerians the opportunity to become shareholders of their own company; they will also get the Annual Reports, and it will become profit making. It would be standardised and controlled because the people that are members would be the general public, companies and individuals. To know more about this demutualisation policy, it's many benefits and why it is still not implemented since 2010 Madam Okereke left office, visit this link; https://m.guardian.ng/business-services/okereke-onyiuke-i-warned-banks-against-raising-idle-funds-but-ego-trip-and-unhealthy-competition/amp/

*Her Legal Battles*

It was a tough and windy road after the Amazon left office as her traducers were hellbent to see her disgraced and probably end up in jail. All the allegations of financial recklessness, manipulations of share prices and the likes tabled before her at the court of law she fought and emerged victorious at the end of the whole case. Eventually she had to settle out of court and even won a N500 million sum against the Securities and Exchange Commission for unlawful removal from office. Another credence to the fact that she was not culpable in all the allegations levelled against her which to me is another plus to her sterling performances and glowing career. To read more visit; https://t.guardian.ng/news/court-dismisses-appeal-against-former-sec-dg-okereke-onyiuke/ and this too; https://trwstockbrokers./2018/03/12/finally-stock-exchange-settles-employment-dispute-with-ex-dg-okereke-onyiuke-others/

*Who Is Dr (Mrs) Ndi Okereke-Onyiuke?*

Born in Bonny, Rivers State on November 2, 1950, Okereke-Onyiuke had her elementary education at Queens College, Enugu before proceeding to City University of New York, USA where she also obtained her MBA, specializing in Finance and Computer Science. She later earned a Doctor of Philosophy as well as Doctor of Administration in Finance and Securities Market from the Graduate School of the City University. Okereke-Onyiuke had been Exchange Services Manager, System Consultant at the New York Stock Exchange before joining the NSE and rose to become its Director General in 2000. Okereke-Onyiuke served as visiting professor for MBA, MBF and MSC classes for the University of Lagos from 1995 to 1997. She served as Exchange Services Manager and Systems Consultant at the New York Stock Exchange from 1976 to 1983. Since 2000, the Exchange witnessed tremendous changes and growth.

@Temitope

Wao… I read this excitement. I hope to have a career in the stock market.

Kenplay:

Wao… I read this excitement. I hope to have a career in the stock market.

Thanks for the recognition and acknowledgment please do