The Nigerian Exchange Limited (NGX) has officially removed three companies—Capital Oil Plc, Goldlink Insurance Plc, and Medview Airlines Plc—from its listing due to repeated violations of post-listing requirements.
This decision is part of the NGX’s ongoing efforts to uphold market integrity and protect investors.
The delisting action followed a series of non-compliance issues, including failure to submit audited financial statements, neglecting corporate governance standards, and prolonged inactivity in the market.
Medview Airlines, for instance, had not recorded any trading activity since October 15, 2021, and was grappling with a free float deficiency of 14.16%, well below the required threshold set by the Exchange.
At the time of delisting, Medview had a market capitalization of N15.8 billion, making up just 0.024% of the NGX’s total equity market.
Similarly, Capital Oil Plc and Goldlink Insurance Plc were cited for failing to meet several essential listing rules. Capital Oil, which had been an active player in Nigeria’s downstream petroleum sector, struggled both operationally and financially in recent years.
The company’s inability to submit financials and disclose relevant information left investors in the dark about its performance, thus breaching transparency and disclosure standards.
At the time of its removal, Capital Oil held a market capitalization of N1.17 billion, representing 0.0018% of the NGX market.
Goldlink Insurance, also facing regulatory scrutiny for several years, failed to address its governance and reporting issues despite multiple warnings from the Exchange.
The company was consistently placed on regulatory watchlists but failed to meet compliance directives, leading to its eventual delisting. With a market capitalization of N910 million, or 0.0014% of the market, Goldlink Insurance had not made sufficient progress in resolving its issues.
The delisting decision was ratified by the NGX Regulation Board in June 2024, marking a firm stance by the Exchange to maintain discipline and integrity within the market.
According to the NGX, the removal of these companies is not a punitive measure but a necessary step to ensure only those firms adhering to high standards of governance, transparency, and consistent market activity remain listed.
Investors holding shares in these companies have been advised to seek guidance from their brokers or the Central Securities Clearing System (CSCS) on how to handle their holdings following the delisting.
While the decision was met with approval from many investors, who viewed it as a vital move to strengthen regulatory practices, the NGX has emphasized that companies facing delisting can reapply for listing if they resolve their compliance issues and meet all listing requirements in the future.
This action reinforces the NGX’s commitment to fostering a transparent and reliable capital market, ensuring that investors can engage in a marketplace that upholds the highest standards of corporate governance.
