A rights and transparency group, Nigeria for All Nigerians (NAN), has raised an alarm over the payment of N754.87 million as compensation to three Executive Directors of the Nigerian Exchange Group Plc (NGX).
The group raised the alarm, following the publication of the NGX’s 2021 full year report. According to the group, NGX made an operating profit of N320 million in 2021 but paid its three Executive Directors N750m.
“Shareholders value was massively eroded by a cost structure that serves these executives to the detriment of shareholders. The reason this is taking place is because the shareholding base of the NGX is terribly fragmented thus allowing management a free rein”, a source said.
The General Secretary, NAN, Mr. Dele Ajanaku recalled that the group had, in October last year, called on concerned regulatory authorities to stop violation of the Nigerian Investments and Securities Act by not allowing Mr. Oscar Onyema to serve as MD/CEO of NGX Group and also a non-executive director on the NGX Ltd.
“The highest paid board member, the MD/CEO as revealed in 2021 audited financial report earned N160.02 million as remuneration from N156.2 million in 2020. The Nigerian capital market is supervised by the Federal Ministry of Finance.
“One of the biggest issues allowing the emergence of these scandalous earnings by the three NGX directors is poor governance.
“In an economy where a majority of the population are poor and inflation has made their spending power weak, it is scandalous that three directors of NGX would earn the kind of amount reported in their report, while its non-management staff dropped to 176 from 241 recorded in prior year”, Ajanaku lamented.
He further noted that the NGX directors were tending towards fiscal irresponsibility by taking care of themselves in good times, but reducing the number of management staff.
“The disclosure of the earnings of the three NGX directors as “early warning signs showing a strong indication of the imminent direction they are taking the NGX, which is why we call on the Federal Government to act now before the NGX’s credibility is damaged as we are in a fragile period”, he added.
