President, Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe, examines the momentum driving the rally at the capital market while offering tips on investing in uncertain times. In this interview with Deputy Group Business Editor Taofik Salako, Amolegbe, who is stepping down after completing his term, takes also a summary view of his tenure
How would you describe the capital market?
The capital market has reached the stage where we can say that the ghosts of the 2008 meltdown have been banished and the Chartered Institute of Stockbrokers (CIS) and other market operators are on sustainable upward growth trajectory. According to the recent edition of The Nigerian Stockbroker, a publication of CIS, the last MTN Nigeria‘s electronic public offering, broke new boundaries by being the first public offering that permitted electronic subscription, enabling over 120,000 new investors from every part of the country to participate. CIS last year commenced remote examination, which enabled candidates from different parts of the world to sit for the exams without having to travel to Lagos. So, the market has matured and is growing in tandem with the rest of the world.
What are the options for investors?
Whether it is equity or fixed income instruments, this is the time to invest through the Nigerian capital market. In recent years, many investors have achieved returns in excess of 60 per cent in a year on Nigerian equities. The capital market remains the surest regulated investment medium to beat inflation in Nigeria. In fact, our market has been adjudged the best performing in Africa for some years, so Nigerian investors should take advantage and increase their investments. But it is advisable that they should seek advice of stockbrokers. They need these professionals to assist them in what we call risk and reward trade off in investment in various asset classes.
Mountain Top University (MTU) recently commenced study of Securities and Investment as a course. What effort is the institute making to get more universities involved?
We have actually secured the commencement of capital market studies in other institutions like Nasarawa State University where Prof Uche Uwaleke, a chartered stockbroker teaches. It’s just to get the NUC accreditation to run as a full programme as it is in MTU. I do not want to mention names, but I assure you that several others will soon commence the programme.
How will the institute attract more millennials into the capital market?
We are attracting the millennials already. The capital market is a very attractive area for youths because of the excitement, the dynamism, and of course that the market is accessible on various online platforms and this enhances interest of the millennials , Generation Z and others. There is no gainsaying many investors are making good money by playing the market. Every year, we embark on a Career Talk drive at various educational institutions across the country.
Many students turn up and register for our examinations during the events. In the last three years, we have also been carrying out the Capital Market Quiz Competition for tertiary institutions. Last year, it was won by Tai Solarin University of Education, with Obafemi Awolowo University as the runner-up. Our computer-based and remote exam have also endeared us to the youth.
To what extent are you collaborating with other professional bodies in the capital market?
As a chartered institute in the capital market, we work in harmony with the various self-regulatory organisations (SROs) and other professional associations in the market. In fact, there is hardly any of these bodies that don’t have CIS members in their midst. So, we work as a team for the growth and development of the market. The law defines the responsibilities of CIS and I believe our friends do recognise that, so the market is a one big hap family.
How has the CIS been handling advocacy?
I must state at the outset that advocacy is an area which is very dear to the institute’s Council and Management. We have been more active in the last few years. We owe it an obligation to grow our membership base and encourage investors in different classes to participate in the market. Last year, the institute hosted two Ministers Zainab Ahmed, the Minister of Finance, Budget and National Planning and Otunba Adeniyi Adebayo, the Minister of Industry, Trade and Investment at the third CIS’ National Workshop at Transcorp Hilton Hotel in Abuja. The thrust of that workshop was the establishment of a clear path to achieving accelerated, double digit economic growth for Nigeria.
Thereafter, we had our 25th Annual Stockbrokers‘ Conference where we inducted over 300 newly qualified stockbrokers and welcomed 40 new Fellows. Early last month, the institute inaugurated CIS Academy. Few weeks after, it opened its first liaison office in Abuja. These symbolise the positive growth trajectory of the Institute and her increased popularity across the country.
Can you shed more light on your online examination?
I am happy to place on record that the National Universities Commission (NUC) has approved the Benchmark Minimum Academic Standards (BMAS) for the curriculum for Securities and Investment as first degree programmes in Nigeria.
In 2021, the Chartered Institute of Stockbrokers commenced remote (online) examinations to cater for our students resident in various countries across the world. Also in 2021 the institute carried out a comprehensive review of its Disciplinary Tribunal rules to reflect changes in dispute resolution processes and also ensure that the right of all parties are well protected. The reviewed rules were subsequently approved by the Attorney-General for the Federation and Minister of Justice, Mr. Abubakar Malami, SAN. Finally, I’ll like to mention the Institute’s Life Insurance Scheme has benefitted the families of seven of our colleagues who passed on in the last two years. These are some of that achievements of our Administration.
What really informed the inauguration of the CIS Academy?
The law granting the charter to CIS gave it four cardinal mandates, and one of the core mandates is providing the required training and examination for both our students and qualified stockbrokers alike. We are at the forefront of advancing capital market literacy in Nigeria. Therefore, training occupies a very special place at CIS. We cannot set examination for people who we have not trained. After certification, we still have to provide Continuing Professional Development (CPD) to our members, to bring them up to date with current trends in the industry. Beyond this, CIS being a specialised training institution has to extend its service to the general public, especially for subjects in the finance, securities and investment fields. This is the rationale for having CIS Academy.
What is unique about this Academy compared to similar ones?
We have the seal of government to provide appropriate training and certification in Securities and Investment. For people attending our courses, the first assurance is that they are dealing with a training provider that has locus standi, ie authority in the field. From this automatically comes competence and quality. What you get from CIS is world class training from first rate facilitators with proven track record in the subjects they teach. Finally, you’ll also discover that our pricing is about the most competitive in the industry: That is due to our deliberate effort to bring capital market education to all, irrespective of class or region.
You recently opened a liaison office in Abuja, how will this impact capital market adoption?
Actually, we have been on this for a few years now. The Abuja office is just the first in a series that will materialise over the next few years. The reality is that the Securities and Investment profession is becoming more popular due to our capital market roadshows and advocacy activities over the years. It is just natural that we make our physical presence felt in key geographical points across the country. Naturally, we are starting with Abuja because it is the nation’s capital city. We will move to other zones in the course of time.
What would you like to be remembered for as a past president of the institute?
Olatunde Mohammed Amolegbe is that humble city gentleman who accepted to lead at a time that the entire country was in turmoil, gave his best for the capital market and Institute, and bowed out with meaningful legacies for his successors to build on. My priority has always been to enhance the institute’s brand positioning by increasing its visibility via advocacy while putting the members’ welfare on the front burner. I thank God that I am leaving the institute into the hand of tested professionals that we share the same vision.