In a major move that could change the face of the Nigerian football league, Enyimba Football Club, Kano Pillars Football Club, Shooting Stars Football Club, Enugu Rangers Football Club, MFM Football Club, Wikki Tourists Football Club, Gombe United Football Club, and El-Kanemi Warriors Football Club are set to list on the NASD OTC Securities Exchange.
The League Management Company (LMC) Limited nominated these eight clubs to serve as pilots preparatory for the full listing of all interested football clubs.
The listing will make it possible for interest members of the public to acquire ownership stakes in the clubs, thereby institutionalising their ownership structure. If the process succeeds, it will be the first time Nigerian football clubs are listing on any exchange in the country.
Analysts say the move is a step in the right direction, considering that football could be a money-spinner.
Already, the LMC has invited Issuing Houses who can act as financial advisers in these clubs listing to express interest.
On July 13, 2016, the LMC, operator of Nigeria Professional Football League (NPFL), signed a memorandum of understanding with the NASD OTC Securities Exchange to encourage and facilitate the listing of football clubs participating in the NPFL on the NASD OTC Securities Exchange.
The LMC is providing the necessary support to the NASD that will facilitate the clubs listing and or sell of the NPFL clubs shares on the NASD OTC Exchange with a long-term objective of turning clubs’ ownership structure to largely supporter-based.
This is same as is the case of Real Madrid and Barcelona of Spain, Al Ahli of Egypt and Boca Juniors of Argentina as well as providing options for equity investment into the clubs by private investors.
NASD plc is the promoter of a Trading Network that eases secondary market trading of all securities of unquoted public companies primarily in Nigeria but with a focus to the West African region.
By the term of the MoU, elite division football clubs in Nigeria are eligible to approach the OTC market.
“In the football league, we can count about 28 sub businesses across associated value chain that can stimulate growth in the economy, drive employment and reduce youth delinquency in the society but we need to harness the potential of our football as a business to open this opportunities”, Shehu Dikko, chairman of LMC had said at the MoU signing last year.
Bola Ajomale, managing director/CEO of NASD OTC Securities Exchange believes that one of the cardinal reasons for the setting up of the NASD is to stimulate growth by easing the capital raising processes.
“Our market is not inside the boardrooms but on the streets where we seek to encourage Small and Medium Enterprises (SME), Cooperatives and others to trade on the exchange,” he had said.
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