Earlyface

The exchange was formerly called Lagos
Stock Exchange
Governor Babatunde Fashola of Lagos State
has demanded an urgent review of the
1977 decree which changed the Lagos
Stock Exchange to Nigerian Stock Exchange,
saying it “negates the global standards.”
The governor made this known while
speaking to journalists at the end of the
technical session of the 10th Lagos
Executive/Legislative parley, where he noted
that across the world, stock exchanges are
named after their host cities.
The Senior Advocate of Nigeria (SAN)
suggested that it is the time to take a
second look at legislations that were passed
during the military era when there was no
legislative arm of government and the
executive appropriated to itself the power
to make laws for Nigeria.
He explained that it was during the military
era that the Lagos Stock Exchange as it
started out, became the Nigeria Stock
Exchange in a unification move,
underscoring the need for the nation to go
back to what is best global practice.
The governor said, “I think the time has
come for us to begin to look at the
legislation that was passed during the
military administration that is decrees and
acts. I think that was when the Lagos Stock
Exchange became the Nigerian Stock
Exchange, in unification for the country.”
“Perhaps there is the need for us to go back
to what is best global practice because we
have the Johannesburg, Paris, New York and
we don’t have the American Stock Exchange
or German Stock Exchange while there is a
Frankfurt Stock Exchange and so on.”
“There is nothing like the British Stock
Exchange, but the London Stock Exchange”
he adds, noting that a similar trend should
be followed in Nigeria consistent with best
global practices.
“Those are issues that some of the
legislators will take on board to their various
legislative bodies” he said for all the
legislators representing Lagos state at both
state and national assembly.
Faults bill on Nigeria International Financial
Centre.
Mr. Fashola also faulted a proposed bill at
the National Assembly for the creation of the
Nigeria International Financial Centre, NIFC,
arguing that the lawmakers might be ‘over-
legislating’ because the measure is against
the 1999 constitution.
The bill seeking the establishment of the
NIFC, which is expected to gulp N5.69 billion,
according to the financial compendium
attached to the bill, scaled the second
reading on the floor of the Senate last May.
When passed, the legislation is expected to
produce three separate agencies, namely,
the Nigeria International Financial Centre
Authority (administrative body); Nigeria
Internal Financial Centre Regulatory
Authority and the Nigeria International
Financial Centre Judicial Authority.
According to the governor, “we have looked
at the bill and we think that there is a
tendency that there may be over legislation
on the bill.”
“The intention of the bill is well defined in
the activities of Nigeria Stock Exchange (NSE)
and the Security and Exchange Commission,
(SEC), Central Bank of Nigeria (CBN) and other
agencies of the central government.”
He added that “there is also doubt about
whether one can legislate the existence of a
financial centre. Is the legislation aimed at
achieving a geographic entity for it or the
creation of an agency to create regulatory
frame work?” Mr. Fashola asked.
“It also seeks to set up an appellate court. It
is very clear in defiance and in conflict with
the constitution itself.”
“The idea that Lagos is the financial centre
for the country is one that is hard to debate
due to the location of the stock exchange
and the number of industries in the state. It
shows that it doesn’t need any legislation to
define.”

Huh?