The Nigerian Exchange Limited (NGX) reported a net loss of N25.27 billion in market capitalization during the first quarter of 2025, following the delisting of four companies, with no new listings to offset the exits.
According to market data, the affected companies were removed due to a combination of strategic restructuring and regulatory enforcement by the NGX, Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), and the National Insurance Commission (NAICOM).
Companies Delisted in Early 2025
- MedView Airline Plc: Once a prominent name in Nigeria’s aviation sector, MedView was officially delisted after several years of financial distress and operational shutdowns. The airline, which had debuted on the Exchange in 2017, exited with a market cap of N15.79 billion.
- Goldlink Insurance Plc: The composite insurer was removed from the Exchange following persistent non-compliance with financial reporting and governance standards. Goldlink left with a market capitalization of N909.99 million.
- Tourist Company of Nigeria Plc: Operators of the Federal Palace Hotel & Casino, Tourist Company faced severe financial challenges, including heavy foreign exchange losses. The company exited the NGX with a market value of N5.62 billion.
- Union Homes Savings and Loans Plc: After more than a decade of failing to meet post-listing requirements, Union Homes was delisted, taking N2.95 billion in market value off the board.
The delisting of Tourist Company and Union Homes alone wiped nearly N8 billion from the NGX’s market capitalization.
A Look Back at 2024
The latest round of delistings follows a trend observed in 2024, during which six companies, including GlaxoSmithKline Consumer Nigeria Plc (GSK), Flour Mills of Nigeria Plc (FMN), and Niger Insurance Plc, exited the Exchange. Reasons ranged from strategic restructurings to regulatory enforcement for non-compliance.
The delistings were conducted under Clause 15 of the General Undertaking in The NSE RuleBook 2015, which allows the Exchange to remove a company from its Official List if it fails to comply with listing standards or public interest wanes.
Market Gains from 2024 Listings
Although no new listings were recorded in Q1 2025, 2024 witnessed notable additions, such as:
- Transcorp Power Plc: Listed in March 2024, adding N1.8 trillion to the market.
- Aradel Holdings Plc: Joined in October 2024, contributing N3.05 trillion.
- Haldane McCall Plc: Entered the Exchange in November 2024 with a capitalization of N11.99 billion.
These new entrants had previously helped to bolster market sentiment and capitalization.
Outlook
While the first quarter of 2025 saw setbacks due to company exits, analysts believe that renewed listings and improved corporate governance compliance could help the NGX recover and strengthen its role as a key platform for capital formation in Nigeria.
