Oteh is wearing a traditional outfit designed by Abuja’s Teev Clothiers

Phot

os b

y Ke

lech

i Am

adi-

Obi

16 | FORBESWOMANAFRICA JUNE / JULY 2014

JUNE / JULY 2014 FORBESWOMANAFRICA | 17

IT TAKES WEEKS TO secure an appointment with Nigeria’s high-profile Director-General of the Securities & Exchange

Commission (SEC). And when we do, it’s on a public holiday.

Walking into Arunma Oteh’s office in the country’s capital Abuja is like walking into a trophy store: shiny medals, mementoes, plaques and trophies take up an entire wall.

One glance is enough to convey the success of Nigeria’s tough-talking chief capital market regulator. A career she couldn’t have imagined.

As a child, Oteh wanted to be an inventor. A proud workaholic, she puts her discipline down to her sound upbringing.

“My parents were really stern but also loving, and for my two sisters and I, the constant quest for knowledge and excellence was firmly rooted in this background. They had such a great sense of character and the courage to be different and standing up for what was right regardless of the cost. I believe they instilled this in me. My childhood is really what has made me who I am today,” says Oteh.

It was tough being the daughter of a father who had exalted expectations. Once, she ran home elated, report card in hand. She had big news.

“Dad, I did it, I came first in class!” One look at her report, and her

father said: “Great, but next time, you have to be first plus plus.”

Such was Oteh’s family. They looked down on mediocrity and believed in brilliance. Hailing from the southeastern part of Nigeria, Oteh grew up in Kano, northern Nigeria.

Oteh’s mother, a nurse, wanted her to become a medical doctor, her father, an engineer, wanted her to take on his profession. But Oteh had other interests. She recalls fondly her obsession to become an inventor. Computer science was in its infancy in the 1980s; she loved the sciences and believed she could become a pioneer. So she studied computer science.

In 1984, Oteh graduated top of her class and faculty from the University of Nigeria in Nsukka, after which she taught computer science to first year university students as part of National Youth Service Corps (NYSC), a compulsory government program for Nigerian graduates.

After NYSC, she went to Lagos and was interviewed for jobs. The offers came thick and fast, and she decided to work for Centre Point, a stockbroking firm, because she admired Dennis Odife, the owner of the company and a highly respected businessman.

“I was impressed with what he had done with the company and what he had become. It was an amazing decision and defined what I ended up doing later in life. I was hired at the time to start the management information systems department but few months into that role, he thought it would be good for me to work in corporate finance. That’s how I got into finance and got really excited about it too,” says Oteh.

Oteh’s fascination for her new found career grew and she explored the next step for growth. Her mentor, Odife, had been to the prestigious Columbia Business School in the United States. And she saw this as a must.

She started reading up about business schools and applying in her first year at Centre Point. The acceptance letters poured in. And she made it through the selection process at Harvard Business School.

As the first Nigerian woman in the MBA program at Harvard in 1990, Arunma Oteh was seen as a princess by her

classmates. Today, she rules Nigeria’s financial markets.

FOCUS

FORBESWOMANAFRICA

ARUNMA OTEH

WORDS ABISOLA OWOLAWI

From College Princess TO QUEEN

Of The Markets

18 | FORBESWOMANAFRICA JUNE / JULY 2014

“My father had always said, if you do well, you can always get what you want,” says Oteh.

Oteh worked in the United Kingdom for some time and flew to Harvard in September 1988. Here, she found herself surrounded by intelligent people and erudition.

“Business school was amazing. The case study methodology employed at Harvard also helped hone my skills in decision-making and problem-solving. This is an environment that prepares you to take on the world. I was very interested in finance. As the first Nigerian woman in the Harvard Business School MBA program, my class mates were quite wowed and thought I was a princess.”

It all led to a career as Director-General of the SEC, a post she has held since January 2010.

This is merely one of the many hats she wears. She was also elected Chairperson of the Africa Middle East Regional Committee (AMERC) of the International Organization of Securities Commissions (IOSCO) in June 2010. She is a member of the Nigerian Economic Management team and serves on the board of a number of organizations including the National Pension Commission

FORBESWOMANAFRICA / FOCUS

WHEN I JOINED, THE VISION WAS FOR

THE SEC TO BE THE BEST REGULATOR IN AFRICA AND I SAID,

‘BEST REGULATOR IN AFRICA?’ THAT’S NOT AMBITIOUS ENOUGH.

OUR AIM SHOULD BE TO BE THE BEST

REGULATOR IN THE WORLD.”

(PENCOM) and Asset Management Corporation of Nigeria (AMCON).

Today, Oteh is charged with transforming the Nigerian capital markets and unlocking the country’s economic potential.

Her appointment four years ago came at a crucial time, on the heels of the global financial crisis. Nigeria’s stock market had fallen 70% from its peak in March 2008. Investor confidence was low. There was need for change and a tough regulator.

By the time she started, Oteh already had a wealth of experience and believed she had the panacea.

Her message to the people was to save and invest wisely. To the policy makers, she preached against

depending on short-term bank finance, and in favor of medium and long-term finance to fund infrastructure.

“Having that crisis helped, because people had seen what could go wrong. The environment to support a tough reform agenda was present as they could see the importance of a regulator that would do its job. When I joined, the vision was for the SEC to be the best regulator in Africa and I said, ‘best regulator in Africa?’ That’s not ambitious enough. Our aim should be to be the best regulator in the world. Nobody invests in a particular market because they love it. They are more interested in the safety and security of their funds. In that case, it is important to build a market that can

20 | FORBESWOMANAFRICA JUNE / JULY 2014

FORBESWOMANAFRICA / FOCUS

stand globally acclaimed. This isn’t possible without integrity,” says Oteh.

Oteh was ready to put her money where her mouth was in an arduous revamp of the Nigerian capital markets.

It wasn’t going to be easy.“That led us to alleging that 260

individuals and entities had carried out different forms of market abuse. The second thing was to focus on the Exchange. Nigeria had one operational exchange and being a visible symbol of our market, it was very important to ensure that we address the challenges of the Exchange because then, we develop the industry of fund and asset managers and develop the fixed income bond market to the point where it became easier for people to borrow.”

Thanks to her efforts, today, she has the likes of the International Finance Corporation (IFC), which launched a successful bond last year. She has also been able to regulate over-the-counter markets.

“We have two platforms, the National Association of Securities Dealers (NASD), which targets unlisted securities so there is more efficient trading in those securities or the platform sponsored by the financial market dealers association which does wholesale trading in Federal Government bonds. Also, introducing new instruments like Islamic finance products, and encouraging real estate investment trusts,” she says.

With all these feats and more under her belt, Oteh believes there is still more to do, and with careful execution, it’s only a matter of time before all her boxes are ticked.

There have also been some dark days along the way for Oteh, as in 2012, the board of the SEC had directed her to go on compulsory leave, following a probe into the near collapse of the capital markets and allegations of misappropriation of funds and disharmony in the apex capital market regulator.

When she isn’t working, Oteh is reading, playing board games or traveling

HER INSPIRATION:Nelson MandelaBill GatesMadame C.J. Walker HER FAVORITE AFRICAN DESIGNERS:Deola Sagoe for her dinner gownsTiffany Amber for her cocktail dressesPathe’O from the Ivory Coast for his Mandela shirtsHER BRANDS:Christian DiorGiorgio ArmaniSalvatore FerragamoHER COLOR:White for jackets and blazersHER FAVORITE DESTINATIONSCapetown, Geneva and San Francisco“My hometown, Item in Abia state in Southeastern Nigeria, because it is serene, the air is so fresh and everyone is so hospitable,” says Oteh.

JUNE / JULY 2014 FORBESWOMANAFRICA | 21

Oteh fought the system tooth and nail and went to great lengths to expose inadequacies in the structure, accusing the Chairman of the House of Representatives of the Nigerian capital market of corruption and unaccountability in a heated exchange at the public inquiry.

Following a two-month suspension, Oteh was cleared of all allegations and went back to her job as Director-General.

“I was angry that a system that is so well-endowed was being managed irresponsibly. I had also built a longstanding career and reputation over 22 years anchored on excellence. I knew there would be risks attached to fighting back and that I would be misunderstood but I also felt that standing up for what was right, far outweighed any costs attached for me. If I didn’t do it, who would?” she told FORBES WOMAN AFRICA.

Prior to her appointment at the SEC, Oteh was Vice President of the African Development Bank (AfDB), and was at the forefront of internal reforms that scaled up the bank’s response to Africa’s development challenges.

She had also served as the bank’s Group Treasurer for five years, managing a portfolio of assets and liabilities worth billions of dollars. In her years at AfDB, she restored its ‘AAA’ rating by Standard & Poor’s.

“Some of my most fascinating experiences were that people were just so excited to hear about Africa – there was such a curiosity about the continent. At the time, AfDB was a ‘AAA’-rated institution and we would go to sell AfDB bonds in Japan. People were relatively familiar with why we were so highly rated. So, most people felt very comfortable with the credit when you sold bonds – they knew there was no risk,” she says.

Oteh had also started the Euro currency programmes while at AfDB.

This great adventure with AfDB began post-Harvard, following a year’s project with the Harvard Institute for International Development assessing the competitiveness of manufacturing

in West Africa. She had interviewed at AfDB where she got hired into the West and North Africa portfolios in 1992. She covered Nigeria, Egypt, Ghana and Sudan, traveling in these countries.

After being away from her home country for 22 years, Oteh, a proud patriot, believes there is no place like Nigeria. She is highly optimistic.

“There are no countries that have taken the bold steps we have in the financial sector in the last few years,” she says.

As her current term draws to an end in January 2015 – and that’s also when she will be turning 50 – Oteh and her team, are working tirelessly still, raising the bar and repositioning the face of the Nigerian capital market globally. It is yet to achieve demutualization and this is a direction the institution would like to steer towards.

Oteh is also passionate about mentoring young girls, and advocacy. She holds a strong view on women’s place in society, drawing attention to the low number of women in key positions and boards.

“Equal opportunities should exist in the work place. A meritocracy where the best suited and qualified individual gets the job is also as vital.”

She also believes in a great support system and that young women should have self-belief.

“Successful leaders should pave the way for younger women to climb the corporate ladder through mentorship and coaching,” she says.

On career and family, Oteh, who acknowledges devoting her life to career, says she wouldn’t do it differently.

They call her the ‘Iron Lady’ for her tough decision-making.

“If leading change, being passionate, resilient and decisive about a great course is what makes me an iron lady, then I proudly raise my hand up high to that tag,” says Oteh.

She has come a long way from Kano. Oteh is not telling us what her plans are post her current assignment, but we are sure to hear more about her in the news. FW

AS BOARDROOM SQUABBLES IN 2013 threatened the peace and public trust in Togo-based Eco-

bank Transnational Inc., Arunma Oteh put a stop to it. That intervention showcased her prognostic skills as an astute adminis-trator and financial market regulator.

Her proclivity for corporate decorum was however cast to the wind during her public row with Nigeria’s legislators in April 2012. She took exception to the trend and tone of questioning by legislators and lost her cool, firing back at members of the panel in the process. The public inquiry into the near collapse of the capital market exposed the shenanigans of the civil service. It also sealed her reputation as a strong-willed technocrat focused on maintaining the regulatory independence of the Securi-ties & Exchange Commission (SEC).

So much ‘wahala’ (Nigerian slang for stress) has not ground her down. Oteh has earned the respect of capital market stakeholders, projecting Nigeria as a fa-vorable African destination for portfolio investments, and positioning Nige-ria’s SEC as an active member of the International Organization of Securities Commissions (IOSCO).

Her appointment in 2010 occurred at an interesting period in the annals of the Nigerian capital and money markets: the Nigerian Stock Exchange (NSE) was at the nadir of corporate governance; the financial system in recovery mode, bouncing back from the 2008 market meltdown. Oteh’s initial tasks were therefore obvious if not arduous: restore investor confidence in the market, rejuvenate and hire a new boss for the bourse and, rebuild the NSE and SEC as agents of economic value-addition.

“Director-General Oteh was instru-mental in driving the transformation of the Nigerian Capital Markets when the Securities & Exchange Commission acted decisively in 2010. She enhanced the levels of professionalism and account-ability among capital market operators including the Exchange,” says Oscar Onyema, CEO of the NSE.

No one can deny her the credit of improving the market infrastructure and helping grow investor appetite in the market.

With a 35.5% return in 2012, Nigeria’s stock market returned 47.2% in 2013, its best performance since 2008 and the best in Africa.

THE OTHER SIDE OF OTEH

MUYIWA MOYELAWORDS