14 companies, including Niger Insurance Plc, Resort Savings and Loans Plc, and RAK Unity Petroleum Plc, are set to delist from the Nigerian Exchange Limited (NGX) this year due to non-compliance with post-listing requirements.
The move was recently announced by NGX, emphasizing the need for adherence to regulatory standards.
The NGX officially delisted Goldlink Insurance Plc, Medview Airline Plc, and STACO Insurance Plc for failing to submit their 2023 financial year results.
The delisting was confirmed in a statement signed by Godstime Iwenekhai, head of the issuer regulation department at NGX.
Other companies on the delisting list include Standard Alliance Insurance Plc, Greif Nigeria Plc, Union Dicon Salt Plc, Austin Laz and Company Plc, ASO Savings and Loans Plc, Union Homes Savings & Loans Plc, Capital Oil Plc, and The Tourist Company of Nigeria Plc.
The NGX RegCo board approved the delisting process for the companies in a meeting held in June 2024.
The companies faced various operational and regulatory challenges, making it difficult to submit audited results and accounts.
For instance, Medview Airlines’ stock price has remained stagnant at N1.62 per share over the past two years, with no trades recorded since October 15, 2021. The airline has also been listed among companies with free float deficiencies, recording a free float of only 14.16%.
RAK Unity Petroleum completed its liquidation process on September 26, 2023, and has since been dissolved, eliminating the need for its continued listing on NGX.
Additionally, The Tourist Company of Nigeria Plc and Standard Alliance Insurance Plc failed to submit their 2020 audited results, while Union Homes Savings & Loans Plc and ASO Savings & Loans Plc have not submitted audited results for over six years.
The NGX cited the companies’ failure to meet listing standards as the primary reason for delisting.
According to the provisions of Clause 15 of the General Undertaking, Appendix III of the Rule Book of The Exchange, 2015, Part II, the NGX reserves the right to remove a company from its Official List if there is insufficient public interest or compliance with listing standards.
The operating licenses of Niger Insurance and Resort Savings and Loans were revoked by their primary regulators, the National Insurance Commission (NAICOM) and the Central Bank of Nigeria (CBN), effective June 21, 2002, and May 24, 2023, respectively.
Two companies, Deap Capital Management & Trust Plc and Multi-Trex Integrated Foods Plc, remain on the delisting watchlist.
Experts say the NGX’s stringent actions show its commitment to maintaining high standards and transparency within the Nigerian financial market.
Meanwhile, recent reforms by the CBN have led to a surge in liquidity within the Nigerian foreign exchange market, prompting Nigerian companies to settle their overdue dollar obligations.
Major firms such as MTN Nigeria Communications Plc, BUA Foods Plc, and Cadbury Schweppes Overseas Limited’s Nigerian arm have confirmed their ability to procure dollars for fulfilling foreign currency obligations, marking a significant departure from previous challenges stemming from US dollar scarcity.
Dollar liquidity increased by 90% to $160.8 million recently compared to the previous day, as reported by Chapel Hill Denham.
