NSE DG calls for prudence among govs

By Friday Ekeoba Lagos - 12.02.2008

THE Director General of the Nigerian Stock Exchange (NSE), Professor Ndi Okereke-Onyuike, has expressed concern over cases of past governors being arraigned for embezzlement of state funds.

This is even as she called for prudence in the financial management by sitting governors. Okereke-Oyuike made these remarks on Monday while listing 16 billion shares of Universal Insurance Plc. on the daily official list of the NSE.

She said governors could access the nation’s capital markets in raising funds to complete abandon projects and also embark on other projects. According to her, the capital market was a safe haven for government to embark on projects that would benefit the people. She said the money to be raised by state governments would be given adequate supervision by the NSE to ensure that the money was utilised for the purpose it was meant for.

“Thirty per cent can be held by state governments which makes them core owners while other percentage can be commercialised,” she said. The NSE boss explained that governments could use statutory allocation to build schools, hospitals and other social infrastructure for the benefit of thepeople in their various states.

Universal Insurance recently completed a private placement where it sought N5 billion but received subscription in excess of N12 billion. The company said this was a clear endorsement of the improvement strategies adopted by the new management of the company.

The profitability of the company has soared significantly as profit after tax moved from N350 milloin in 2006 to N576 million in 2007.