NSE CEO Oscar Onyema speaks on bourse’s performance

The Nigeria Stock Exchange (NSE) has seen significant growth in its market capitalization and All-Share Index in 2017, with a rise of 41.6% and 42.3% respectively. CNBC Africa's Kenneth Igbomor spoke with NSE CEO, Oscar Onyema, during the 57th annual general meeting of the exchange to delve into the factors behind this performance and the strategic initiatives driving the exchange forward. Onyema highlighted the challenging operating environment over the past four years but noted that the positive impact of coming out of a recession in 2017 was reflected in the market numbers. He emphasized the role of equity markets as forward indicators, signaling economic recovery before it is evident in the general economy. The NSE has been actively working towards dematerialization to modernize its processes. An important milestone was achieved with the approval by members to support dematerialization efforts. The next step involves obtaining legislation through the national assembly, with the process nearing completion awaiting presidential assent. Once this is obtained, the exchange will transition to full dematerialization, streamlining operations and enhancing efficiency. The interview also touched on the progress in derivatives development at the exchange. Onyema mentioned two key projects in this area, including derivatives product development and the establishment of a clearinghouse to support derivative trading. While significant progress has been made on both fronts, more work is required to bring the products to market effectively. Looking ahead, Onyema discussed the NSE's strategic framework for 2018 to 2021, driven by the need to adapt to the dynamic global capital markets. The exchange is undergoing a strategic shift from a product-centric model to a customer-centric, technology-driven approach. In line with the fourth industrial revolution, the NSE is embracing new technologies such as cloud computing, big data analytics, artificial intelligence, and distributed ledgers. These innovations are aimed at enhancing operational efficiency, creating new partnerships, and ensuring cost-effectiveness in the exchange's operations. Onyema emphasized the importance of aligning with global market trends and leveraging technological advancements to extract strategic value. The NSE's focus on digital transformation and innovation reflects a proactive approach to meeting the evolving needs of investors and stakeholders. By embracing the opportunities presented by the fourth industrial revolution, the NSE aims to enhance its competitive position and drive sustainable growth in the Nigerian capital market. As the exchange continues to evolve in response to market dynamics, the strategic initiatives outlined by Onyema signal a forward-thinking vision for the NSE's future.