Chapel Hill Denham Advisory on how demutualisation will contribute to Nigeria’s economy

The Nigerian Stock Exchange is poised for a significant transformation with the demutualization process set to kickoff. In a recent interview with CNBC Africa, Kemi Awodein, the Managing Director of Chapel Hill Denham Advisory, highlighted the potential impact of this move on the country's economy. Demutualization, a long-awaited development, is expected to bring about prosperity for brokers and shareholders, as well as improve governance within the exchange. Awodein emphasized that this transition will not only attract local investors but also open doors for offshore participation, potentially putting Nigeria at par with other global exchanges. The demutualization of the Nigerian Stock Exchange is a milestone that will not only benefit brokers and shareholders but also showcase the importance of the exchange in driving economic growth. Awodein explained that the move will provide brokers with the opportunity to become proper owners and shareholders in a business, allowing them to extract value through dividends and capital growth. This, in turn, will enhance governance practices and bolster the exchange's contribution to the Nigerian economy. Furthermore, demutualization is expected to attract new entrants to the Nigerian capital market. With the spotlight on the exchange, companies that previously hesitated to list on the NSE may reconsider, exploring the various listing categories available. The premium board, regular board, and other listing options offer diverse opportunities for businesses to tap into the Nigerian market, fostering growth and diversification. The global stage is another arena where the demutualization of the Nigerian Stock Exchange is poised to make an impact. Awodein suggested that offshore investors, including strategic and institutional players, may show interest in the exchange post-demutualization. By improving governance and positioning the NSE as a hub for investment, Nigeria could attract foreign capital and solidify its position as the largest economy in Africa. The move aligns with the country's ambitions to leverage its economic potential and boost growth across various sectors. As Nigeria joins the ranks of demutualized exchanges worldwide, the opportunities for the NSE are vast. The transition is expected to spur innovation, enhance market transparency, and attract a broader base of investors. With a newfound focus on governance and growth, the Nigerian Stock Exchange is set to play a pivotal role in driving the country's economic development. The demutualization process marks a new chapter for the NSE, signaling a shift towards modernization, efficiency, and competitiveness on the global stage.