The Nigerian Exchange Limited (NGX) has seen an unprecedented wave of corporate exits in 2024, with 15 companies either voluntarily or forcibly delisted due to strategic restructuring, operational challenges, or non-compliance with listing requirements.
Among the prominent departures is GlaxoSmithKline Consumer Nigeria Plc, a move that underscores the shifting dynamics within Nigeria’s corporate landscape. GSK Consumer Nigeria delisted its 1,195,876,488 ordinary shares from the NGX as part of a broader restructuring strategy.
The company’s decision reflects its ambition to streamline operations across Africa, focusing resources on markets with stronger strategic opportunities. This move aligns with GSK’s global efforts to optimise its portfolio and drive operational efficiency.
The NGX’s regulatory arm has not shied away from enforcing compliance standards. In 2024, firms like Niger Insurance Plc, Resort Savings and Loans Plc, and RAK Unity Petroleum Plc faced forced delistings due to prolonged non-compliance and operational deficiencies.
The exchange cited these firms’ failure to submit audited financial reports and persistent underperformance as grounds for removal.
According to a statement by Godstime Iwenekhai, Head of Issuer Regulation at the NGX, “The delisting of these companies reflects their inability to meet the exchange’s stringent listing standards, making their securities unsuitable for continued trading.”
The wave of delistings has affected various sectors, from insurance to hospitality. Among the companies delisted in 2024 are Goldlink Insurance Plc, Medview Airline Plc, STACO Insurance Plc, and The Tourist Company of Nigeria Plc.
Most of these entities struggled with regulatory bottlenecks, liquidity crises, and operational inefficiencies. Medview Airline Plc, for instance, which stagnated at about ₦1.62 per share for two consecutive years, was delisted after prolonged stagnation.
The airline’s chairman, Sheikh Abdul-Mosheen Al-Thunayan, attributed its underperformance to political instability and tight liquidity.
Similarly, RAK Unity Petroleum Plc concluded its liquidation process in 2023 and no longer required a listing on the NGX. Other notable delistings, including Union Dicon Salt Plc and ASO Savings & Loans Plc, were tied to years of financial reporting deficits.
The delistings of 2024 serve as a stark reminder of the critical need for operational excellence, regulatory compliance, and robust financial management. For investors, these exits underscore the importance of due diligence in navigating Nigeria’s capital markets.
