NGX Group Addresses Criticism Of CEO, Oscar Onyema, Management Decisions

The Nigerian Exchange Group (NGX Group) has reacted to criticism that has trailed the decisions of its Chief Executive Officer, Oscar Onyema, and the management of the firm. 

NGX Group had been condemned for having poor corporate governance, demanding to raise N35 billion through shares and debt without giving reasons, awarding the management 200,419,990 ordinary shares of 50 kobo each for the operation of a Long Term Incentive Plan. 

Onyema-led management had also been criticised for dwindling share price and not paying shareholders dividends despite rewarding themselves with shares, and some shareholders receiving payment. 

In a statement addressing the criticism, NGX Group said its share price has not depreciated below its listing price of N16.15kobo, and the shares management were said to have been rewarded with, half, being, 100,209,995 ordinary shares are to be purchased by employees at a discount of between 15% – 20% of its market price. 

What NGX Group Is Saying

On the Corporate Governance issue, the company said, “The NGX Group’s operations are built on an effective corporate governance framework and the highest corporate governance standards. Regarding the tenure of the Chairman and the Group Chief Executive Officer of NGX Group, it is pertinent to note that both esteemed individuals were appointed following due process and with the applicable regulatory approvals.” 

Regarding the Value of Shares at Listing, NGX Group stated, “While it is factual and public knowledge that the demutualisation of the NSE (during which it changed its name to Nigerian Exchange Group Plc) was eventually completed when it became a capital market holding company effective 01 March 2021, and NGX Group was listed on Nigerian Exchange Limited in October 2021, the listing price of its shares was NGN16.15 and not NGN27.90 as erroneously reported. Please refer to the cover page of the Listing Memorandum which is a public document.” 

Addressing the Proposed Capital Raise, NGX opined, “The Company intends to raise additional capital of up to NGN35,000,000,000 to fund (i) the business expansion; (ii) the growth phase for existing business lines/investments; and (iii) investments in identified and carefully curated new targets, in line with the Company’s and NGX Group’s strategy. 

“As captured in the notice of the AGM, the Company does not intend to raise the entire amount in USD. NGX Group has also identified viable investment opportunities in line with its strategic expansion plans, including deepening investments in the existing portfolio companies to ensure high and steady dividend returns. NGX Group is therefore on course with its long-term strategy which will ensure it provides competitive returns for its investors.” 

To read the full document addressing the criticism, click this link.