Stories by Amaka Ifeakandu
Lagos
Chief Executive Officer, the Nigerian Stock Exchange, Mr Oscar Onyema has said that the different activities adopted by the Exchange was set to enhanced sustainable growth in the country.
Onyema who made this remark in Lagos at seminar organised by Chartered Institute of Stock Brokers said that the Premium Board Index was introduced to encourage listed companies to aspire to the highest standard of corporate governance. He said that despite current bearish trends, the NSE’s Premium Board index has grown by 6.9 per cent year-to-date compared to the NSE’s All-Share Index (ASI) which is down by 5.3 per cent . This according to him reflects the appeal of this Board to investors, and affirms that strong, transparent and sustainable listed companies are key to developing a resilient market.
He said that Corporate Governance Rating System (CGRS) jointly introduced by the Exchange with the Convention on Business Integrity (CBi) for listed companies provides the ‘checks and balances’ that create sustainable businesses, irrespective of the sector. He said the CGRS evaluates companies based on the quality of their corporate integrity; compliance with governance standards; understanding of fiduciary responsibilities by directors and corporate reputation.
He said that access to long-term finance is critical to our economic recovery and implementation of the Sustainable Development Goals (SDG) and other national and global agendas. He said at the intersection between issuers, investors, and regulators – the Exchange is strategically positioned to influence the adoption of globally recognized sustainability standards by Nigerian businesses. He explained that these standards and principles, to which the Exchange itself adheres, “help to shape investment decision-making, and have become increasingly important to attracting the global flows that our market needs to support a more diverse and competitive Nigerian economy.”
Speaking further he said “a key pillar of the NSE’s overall sustainability strategy is the ‘Marketplace’, and our fundamental principle in this regard is the development of a sustainable capital market that finances growth that maximizes the long-term value of investment portfolios.
Towards this commitment, the Exchange is focused on continuously enhancing regulatory oversight, initiating new collaborations for policy formulation and promotion of Environmental, Social and Governance (ESG) standards, and promoting reporting practices as an integral element of a well-functioning market and economy.” He said that although imbibing and promoting sustainability practices are significant, but there is a lot more to do to increase the competitiveness and sustainability of the Nigerian capital market. This requires a concerted effort of the entire eco system from the capital market community to the regulators, legislators and policy makers. On our part we continue to make ourselves available to support Nigeria’s newly-privatized government entities as they seek to access capital required for critical business infrastructure and service upgrades via the equity and debt markets. He said the NSE is also committed to financing low-cost, eco-friendly project through green bonds and infrastructure bonds amongst many other innovative products that support Nigeria’s socio-economic development.
