The demutualisation of Nigerian Stock Exchange which started in 2001 was early April, 2021 completed and NSE gave way for Nigerian Exchange Group (NGX Group) Plc. This simply means that NGX Group will now be a profit operating company, accountable to shareholders.
Economists explained that ‘Demutualisation’ is a term used to describe the transition of Exchange from not-for-profit to profit organisation. When demutualisation is completed, it alters the governance structure of the exchange.
Demutualisation which is new trend globally requires exchanges to focus their business differently. It was this thinking and in line with global practice that the completion of the demutualisation process of the Nigerian exchange resulted in the creation of a holding company NGX Group Plc and its subsidiaries. They are: Nigerian Exchange (NGX) Limited, the operating exchange; NGX Regulation (NGX RegCo) Limited, the independent regulatory arm of the Exchange; and NGX Real Estate (NGX RelCo) Limited, the real estate company.
With the new creation and brand change, it is expected that managers of the new entities will think deeply for profit. Experts further explained that profit nature of the exchange means that the operations have to be tailored to meet market needs and therefore generate profit.
“It is a time to see some buoyancy in our stock market. We have been looking for IPOs and other asset classes’ not just stocks and equity and people who will be doing day trading and there will those who may not necessarily be intermediating with stock brokers”, Kelechi Nwosu, CEO of TBWA Concepts and brand builder said. He believes that the new change will allow for fluidity and dynamism in the market place.
In IMF working paper, Jennifer Elliot said demutualised exchange allows for more professional management and may be more efficient in its decision, allowing the exchange to respond quickly to change and to remain innovative and competitive.
As trading is open to global audience with technology, Jenniffer further said a demutualisation can provide influx of capital that the exchange can use to improve technology.
The demutualisation which will result to more market dynamism has become important as exchanges “play key role in the functioning of the financial sector and can have important impact on the functioning of the overall economy”. As said by Kelechi Nwosu, if the buoyancy of the exchange is achieved, following the demutualisation, NGX will be able to unlock sizeable percentage of Nigeria’s funding capacity and this is important in the face of the new Africa Continental Free Trade Agreement.
Assessing the new logo, Nwosu sees dynamism in the logo which is represented by connecting N. The N represents trading and continuity. He however said logos and identities are half of the story but what the brand does which is what the current management of NGX has worked hard on, is more important.
“The NGX brand identity follows a monolithic brand architecture, which will facilitate the formation of any new subsidiary by leveraging existing brand equity. The identity is inspired by the arrows of the stock exchange ticker tape as well as monetary exchange between a buyer and seller. These arrows are stylised to form an ‘N’ and denote the act of collaboration”.
Speaking on the development, the Group Chief Executive Officer, NGX Group. Oscar N. Onyema, OON in a statement said, “We are very excited about the launch of our new brand identity and website at this pivotal time in our history. Influenced by the dynamism and resilience of our market in both good and challenging times, our new identity, which builds on our rich heritage, reflects who we are today, our ambitions for the future, and our resolve to deliver superior value to our stakeholders. As we step into the NGX era, we remain committed to achieving the highest level of competitiveness, both in African and global capital markets”.
Together with the new vibrant, modern and responsive website, NGX Group offers an enriched user experience. Accessible via ngxgroup.com, information about the group and the various subsidiaries are independently situated but featured as one website. With its centralised home page and clearly delineated tabs for each subsidiary, the new site delivers relevant content in a clean and organised way to provide visitors easy access and navigation to all the information they require.
The new brand identity and digital assets reflect the vibrant, disciplined, inspired and engaging personality of NGX Group and its subsidiaries. They are designed to make a distinctive and positive impression, even as the organisation continues to provide a platform for investors and issuers to meet their investment objectives.