For good ten (10) years, precisely 2011 to 2021, Oscar Onyema held sway at the local bourse, the Nigerian Stock Exchange (NSE) as the Chief Executive Officer (CEO). His sterling achievements earned him a special closing gong ceremony held in his honour on Thursday 1st April this year. Though he has left office, Onyema has remained the toast of capital market operators. It also led to his elevation to the exalted office of Group Chief Executive Officer (GCEO), NGX Group Plc, an offshoot of the successful demutualization of the Exchange.
The Chairman, Nigerian Exchange Group (NGX Group), Otunba Abimbola Ogunbanjo, said that the closing gong was in commemoration of Onyema’s exemplary leadership.
According to Ogunbanjo, “It is impossible to overstate Oscar Onyema’s contributions to the growth of The Exchange and the development of the capital market in the past 10 years. After his first year of leadership, it became evident that his strategic mindset and mastery of Exchange business is what NSE dearly needs to rise to its next level of growth.
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“As anticipated, The Exchange went on to experience significant growth as the years passed by, most notable of which is the recent completion of the demutualisation of The Exchange. It has indeed been a pleasure working with him in our time at the NSE and I look forward to our continued journey to greatness in the NGX era.”
In 2011 when Onyema took over the leadership of the NSE, the stock market was in the doldrums, investors’ confidence low, mono-product and the bourse under regulatory administration. With tunnel vision, collaboration with stakeholders in the financial system and perseverance, he was able to surmount almost all of the challenges.
It would be recalled that under the demutualization plan midwife by Onyema, the NGX Group Plc, a new non-operating holding company, was created as the parent company for the NSE and its operating structures with its three operating subsidiaries. These subsidiaries include Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulatory arm; and NGX Real Estate Limited (NGX RELCO), the real estate company.
Onyema joined the Nigerian Stock Exchange (NSE) on 5th April, 2011 from the American Stock Exchange where he was a senior vice president and chief administrative officer with a promise to operate an open door policy. And true to his promise, his administration was built on productivity, hard work, commitment and loyalty to the Exchange.
Born 19 August 1968, Oscar Onyema has a Bachelor’s degree in Computer Engineering from the Obafemi Awolowo University, Ile-Ife, MBA, Finance & Investments, Baruch College, New York and Advanced Management Program, Harvard Business School, Boston. He worked at the New York Mercantile Exchange, in the late 1990s. and in 2001, joined American Stock Exchange, serving as Senior Vice-President and managing the NYSE Amex equity trading business. Later in 2009 he was the Adjunct Lecturer of Economics, Pace University, New York; founded Market Strategists and consulted under the Gerson Lehrman Group, US. He was the former Chairman, West African Capital Market Integration Council (WACMIC), member, Global Agenda Council, World Economic Forum, President, African Securities Exchanges Association (ASEA), Chairman, Central Securities Clearing System (CSCS), the clearing house for the Nigerian capital market and Council Member, Chartered Institute of Stockbrokers of Nigeria (CIS).
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He is also a member of several advisory boards including London Stock Exchange Group (LSEG) Africa Advisory Group (LAAG) and Thomson Reuters Africa Advisory Network, council member, Global Agenda, Council member of World Economic Forum (WEF); board member of FMDQ OTC PLC and National Pension Commission of Nigeria (PENCOM). A holder of prestigious Nigerian national honour of Officer of the Order of the Niger (OON); Onyema is a Fellow of the Institute of Directors (IOD); Fellow of the Chartered Institute of Stockbrokers (CIS); Associate of Chartered Institute for Securities & Investment (CISI) in the UK; Holder of FINRA Series 7, 24, and 63 in the USA. Amongst several accolades, Forbes Magazine listed him as one of the ten most powerful men in Africa in 2015.
Onyema’s last year in office, 2020 to 1st quarter 2021 witnessed very remarkable developments. Despite the scourge of the Coronavirus pandemic, the Nigerian equities market got off to a strong start in 2020, returning 10.4% by the eighth trading session. By October, the equities market entered a much awaited bull run. Buoyed by the formal declaration of the U.S president-elect, unattractive fixed income yields and better-than-expected corporate earnings, the NSE ASI recovered from Q1’20, to close the year at 40,270.72 (+50.03%) and erase losses of -14.90% recorded in 2019. During its remarkable year end run, the ASI gained 6.23% in a single trading session. At the close of the year, the NSE’s equity market capitalization was up by 62.42%, from N12.97 trillion in 2019 to N21.06 trillion in 2020 while market turnover saw an uptick of 7.25%, from N0.96Tn in 2019 to N1.03Tn in 2020.
Although Initial Public Offering activity was mute, the value of supplementary issues increased dramatically from 2019, rising by 851.37% to N1.42 trillion, from N148.77 billion. Also noteworthy is that for the second consecutive year, equity market transactions were dominated by domestic investors who accounted for 65.28% of market turnover by value (Retail: 44.98%; Institutional: 55.02%) while foreign portfolio investors accounted for 34.72%.
Capital-raising activities in the fixed income market increased significantly in 2020. The NSE’s bond market capitalization rose by 35.52% from N12.92 trillion in 2019 to N17.50 trillion.
In terms of the strategic performance of The Exchange, several milestones were recorded in 2020. For instance, the NSE moved closer to its goal of launching Exchange Traded Derivatives as NG Clearing Limited received approval in principle from the Securities and Exchanges Commission (SEC) to launch clearing and settlement of exchange-traded derivative products as Nigeria’s premier Central Counterparty Clearing House (CCP).
Plans for demutualisation also advanced significantly following the Court Ordered Meeting (COM) and Extraordinary General Meeting (EGM) where Members of The Exchange unanimously voted in favour of the resolutions presented for consideration. The Scheme of Arrangement for the NSE’s demutualisation was also sanctioned by the Federal High Court.
The Exchange revamped the NSE Data Portal to facilitate easier access to NSE market data; upgraded the X-Issuer platform to further enhance market integrity and X-Whistle to strengthen investor protection; launched the X-PO to boost retail participation in the market and automate listing processes; and released.
It is remarkable that throughout Onyema’s tenure, the Exchange sustained its thought leadership and advocacy role in the capital market. Even this year started on a positive note as the ASI has already returned 2.0% after 11 trading sessions.
It is envisioned that the marginal reopening of businesses, normalization of the economy and revenue-diversification drive of the Nigerian government would elicit positive sentiments throughout the year even as Onyema setteels down to his new role as Group CEO, NGX Plc .
