TEMITOPE DAVID-ADEGBOYE explores how the cerebral Arunma Oteh’s hands-on approach has steadied the award-winning Nigeria’s Securities and Exchange Commission (SEC)…
The Securities and Exchange Commission (SEC) has had to re-establish a tarnished reputation. It has been a hard-won process to rebuild trust. Time was when Nigerians, many of them first-time investors, clamoured for a piece of the action on the booming stock exchange. For many, sadly, the new Eldorado turned out to be fool’s gold. Many got their fingers burnt, or far worse than that, as in losing their shirts.
It took a stout-heart in Arunma Oteh to agree to navigate the SEC back through stormy weather into a calm harbour. The valiant lady had a lot to lose, reputation-wise. The decision to pilot the weather beaten SEC at such a propitious moment would have been made even more difficult because she obviously has a high self-esteem as well as a hard-earned reputation to protect.
Her social and professional self-confidence is anchored on a superb resume. Her appointment, even to the mischievous or the uncharitable, was certainly not based on Nigeria’s well-worked, to use the local bathos, ‘as man, know man’ framework. Her intellectual preparation for the job is superb. To the extent that one astute observer chuckled privately at the time out of earshot, that perhaps she is a bit ‘over-qualified’ for the job.
Rather hyperbolic, but there is a lot of truth said in jest. Oteh’s intellectual preparation includes a first class honours degree in computer science, from the University of Nigeria, Nsukka (UNN). This was subsequently topped up with a master’s degree in business administration (MBA) from the Harvard Business School. The professional expertise acquired, which has been the launching pad with which to reposition the exchange has been equally enticing.
Prior to joining SEC, she worked in corporate finance, consulting, teaching and research for a number of institutions, including the Harvard Institute for International Development, United States of America and Centre Point Investments Limited, Nigeria. She has served on the board of a number of organisations, including the Advisory Board of the Africa Investor, and the International Financing Facility of Immunisation (IFFIM). She is the co-editor of the book, African Voices African Visions.
Repositioning the SEC has been a hard-run proposition. Much like a hardship posting. Confidence was at a critically low ebb, debilitating for a business model which is anchored on trust. To rebuild a different perspective she has had to put through multi-faceted reforms of the market. The result has improved the Nigerian capital market”s performance on all critical indicators in the past three years.
The reforms have institutionalised a culture of zero tolerance for market infractions and indiscipline through a strong regime of market enforcement; market technology improvement through digitisation and ICT deployment; enhanced market depth and breadth through product diversification and improvement; improved human capital through training and retraining; achieved a consensual approach to conceptualising market development strategy through consistent and extensive regulator/operator and other stakeholder engagement, etc. These reform planks have applied market-wide in a manner that has impacted every facet of the market beneficially.
The recognition for stabilising the market and vitally rebuilding trust has come in deservedly, thick and fast. Recently, the SEC won the 2013 edition of the Africa index series award for the category of the continent’s “most innovate capital markets regulator”. The SEC Nigeria also won the prestigious, not-for-sale award last year. Along the line, the repositioning implemented under Oteh’s leadership has rekindled the interest of foreign investors and observes alike. It is a decisive gain at a critical rebuilding juncture.
In adjudging the SEC winner of the “Most Innovative Capital Markets Regulator” award, the judges considered the regulator’s commitment to increasing transparency and efficiency, support for innovative technologies, employment of best regulatory practices, openness to foreign investors, investor protection (e.g. rules to prevent dilution and protect minority shareholders), visible impact and participation in industry associations such as IOSCO and efforts to create an enabling environment for the capital markets industry.
The SEC czar has also received personal accolades for her endeavours. They have been bestowed without the usual controversies. In 20011, in recognition of her contribution to transforming the Nigeria capital markets, she was awarded the ‘Officer of the Order of the Niger (OON)’; she has also received the “distinction in public service” Commonwealth business council/Africa business award”.
Oteh is endearingly self-effacing about it all, her eyes focused very much on the ball. The importance of the accolades she cleverly redirects towards SEC as an institution within the context of the repositioning project. For example, being awarded the Africa business leader of the year 2014 must have been satisfying on a personal level. Nevertheless, she sees it as a commendation not for herself but for the SEC project.
Her reaction has been that it is linked to creating at SEC the right atmosphere whereby progress can be made.
“I think what we have done is to create an enabling environment such that businesses can realise their potential, but also such that our nation can realise its potential. But in doing that, what we have seen is that we have been such a role model for other countries around the world because we have been bold; we have done things people have wondered whether they should do. We have taken risks, and those risks have paid off for us. But I think what is most important for me in this recognition is that, around the world, capital market regulators feel that there is a greater understanding of the role that capital market plays in transforming society. Whether it is to help businesses or create jobs, whether it is just building a meritocracy, but even as we deal with the security challenges that we face today, all of us as regulators, whether market participants believe that what capital does is to enable social cohesion and enable us address some of the challenges that we face today.”
Restoring investor confidence has been key in her work. And she has gone a long way towards making the stock exchange attractive again. Her benchwork is a determined effort to use international best practices to make the market world class. This drives her to place her own reputation and personal integrity on the line.
Her defining moment is anchored on her parents and assorted role models:
Her words: “I think my parents, because they laid an early foundation to stand up for what is right, to make sure that I am working and whatever I am doing impacts on society. And their lives were something I would emulate. Also business leaders like Bill Gates; he is someone that I have admired both in terms of what he has achieved with Microsoft, but also just giving all of it to transforming society and focusing on real development challenges. Madam Walker, the first female billionaire in the U.S. who was looking for products for her hair and did not find it, made something for her hair and decided that she would make it available to other black women. People who are innovative, people who have changed the world, those are the ones that inspire me.”
Oteh has many more miles to go. She is with a determined gait, on course with the SEC repositioning project. Very passionate, in mixing an all-consuming compassion with steely determination. In a mix of things, Oteh gets things done in a structured sort of way.
The schedule is hectic, but she manages the juggling act very well. Nevertheless, that self-effacement is always endearingly there. “I don’t balance work and my personal life. If you found a formula, share it with me, I will pay for it. I do one at a time. I take a step at a time.” Delightful really, the endearingly charming, self-effacing, high achieving Arunma Oteh.
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