Economics

Nigeria suspends dozens of stockbroking firms

LAGOS — Nigerian regulators have suspended 57 stockbroking firms from trading in one of Africa’s largest exchanges because they do not meet capital requirements, a spokesman said Thursday.

“They have been suspended from trading until they meet the requirement,” Nigerian Stock Exchange spokesman Wole Tokede told AFP. “The move is aimed at strengthening the capital market, a key financial sector of the economy.”

Firms are required to have a capital base of 70 million naira ($459,000, 341,000 euros).

The stock market lost 70 percent of its value in 2008-2009, much of it due to a major banking crisis in Nigeria, one of the world’s largest oil producers and Africa’s most populous nation.

Corruption and mismanagement at banks — as well as the bad loans that went with it — fed the banking crisis, which led to a bailout.

This week’s suspension followed a recent inspection by regulators.

Also on Thursday, the Securities and Exchange Commission announced it had approved the appointment of Oscar Onyema as new chief executive of the Nigerian Stock Exchange.

Onyema has previously worked at the New York Stock Exchange and American Stock Exchange (Amex).

The bourse regulator last year fired the head of the stock exchange after allegations of mismanagement, in a move seen by some as a victory for reformers.

Anthony-Claret Onwutalobi
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC and CEO of Portia Web Solutions. Mr. Claret publishes and manages the content on Codewit Word News website and associated websits. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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