Over 120 Companies Delisted From Nigerian Stock Exchange In 21 Years

A review conducted by THE WHISTLER on the quoted companies on the Nigerian Exchange Limited has shown that 124 firms have been delisted from the local bourse since 2002.

More companies have already filed to be delisted from the NGX.

Based on an investigation by THE WHISTLER, some of the delisted companies were removed voluntarily due to mergers and acquisitions as well as violations of regulatory rules.

For instance, Spring Bank was nationalized and taken over by the Central Bank of Nigeria, while Sun Insurance and Security Insurance were taken over by the National Insurance Commission.

Delisting means the removal of a company’s security from a stock exchange.

The first 13 companies to have been delisted from the NGX were: Dumez Nigeria Plc delisted in 2002; Impresit Bakolori Plc (2002); CFAO Nigeria Plc in 2007 (voluntary); BHN Plc delisted 2007 (regulatory); while ACEN Insurance Plc was delisted in 2008 for regulatory reasons.

Also, Amicable Insurance Plc was delisted in 2008 for regulatory purposes and ATLAS Nigeria Plc in 2008 (regulatory)

Similarly, Aviation Development Company Plc was delisted in 2008 for regulatory reasons; BAICO Insurance Plc in 2008 (regulatory); Ceramics Manufacturing Company Plc in 2008 for regulatory reasons; Maureen Lab. Plc was delisted in 2008 for regulatory; INTRA Motors Nig. Plc was delisted in 2008; GROMMAC Industries Plc was delisted in 2008 (regulatory) and ENPEE Plc voluntarily delisted in 2008.

Between 2019 and 2022, about 21 companies were delisted from the NGX.

The list showed that Fortis Microfinance Bank Plc was delisted for regulatory reasons on August 21, 2019; First Aluminum Nigeria PLC was voluntarily delisted on July 31, 2019; Dangote Flour Mills was delisted on 18th November 2019; Diamond Bank Plc was delisted on April 1, 2019 after merger with Access Bank Plc; Great Nigeria Insurance Plc was delisted in 2019 voluntarily; NEWREST ASL Nigeria Plc voluntarily delisted in May 2019; and Skye Bank Plc was delisted on August 21 2019.

In 2020, A.G. Leventis (Nigeria) Plc voluntarily delisted on January 7; Cement Company of Northern Nigeria Plc was delisted on January 9 following the merger with BUA Cement Plc (formerly OBU Cement Company Plc); Continental Reinsurance Plc was delisted in January; while ANINO International Plc was delisted in October for regulatory reasons.

The 2022 financial year saw another delisting round with 11 Plc being the first to be delisted on 7th May 2021 on voluntary grounds; Nigeria-German Chemicals Plc was delisted on June 14, 2021; RTLAND Paints & Products Nigeria Plc exited the NGX on Sep 17, 2021, due to a merger with Chemical & Allied Products Plc; UNIC Diversified Holdings Plc was delisted for regulatory reasons on Jun 14, 2021, and Roads Nigeria Plc was also delisted in June.

In 2022, Union Diagnostic & Clinical Services Plc exited the NGX voluntarily on January 7; Studio Press Nigeria Plc was delisted on January 7, 2022, while Access Bank Plc was delisted in March following the restructuring into a Holding company.

As of August 2023, only Ardova Petroleum Plc voluntarily delisted on July 26, 2023.

Prominent companies like GSK have applied for delisting after it announced its exit from Nigeria.

Oando Plc is also delisting from the NGX. In March, the oil company Oando Plc notified NGX and the Johannesburg Stock Exchange Limited (JSE Limited) that it received an offer from its core shareholder – Ocean and Oil Development Partners Limited (OODP), to acquire the shares of all minority shareholders in Oando.

Process For De-Listing A Company From The Daily Official List

Companies quoted on the NGX either delist voluntarily or by regulatory delisting as a sanction for non-compliance with post-listing rules.

To delist voluntarily, NGX explained that, “Directors meet and pass resolution to de-list the Company, resolution for de-listing proposed for approval of shareholders at Annual General Meeting/Extraordinary General Meeting, draft notice containing the proposed resolution to be submitted to the Nigerian Stock Exchange for vetting and approval among others.

On the other hand, companies delisting based on regulatory grounds would be delisted based on compliance with post-listing rules.

The NGX rule for regulatory delisting said that “De-listing is wielded as the ultimate sanction on a Company for persistent non-compliance with post-listing rules.”

This is addition to other requirements .