Capital Market Red Flag: Nearly ₦1 Trillion Lost to Delistings in 10 Years — Shareholders Demand Urgent Reform
A deepening crisis is unfolding in Nigeria’s capital market as the country grapples with a silent but significant capital erosion: ₦1 trillion lost to company delistings between 2015 and 2025. This unsettling trend has prompted a renewed call from investors and market stakeholders for urgent reforms to revive investor confidence and protect the long-term stability of the Nigerian Exchange (NGX).
The most recent blow came with the delisting of Notore Chemical Industries Plc, a major agro-industrial player and one of NGX’s previously valued stocks with ₦252 billion in market capitalisation. Notore’s exit over the weekend makes it the latest in a disturbing string of departures that are slowly hollowing out the Exchange’s diversity and inclusiveness.
⚠️ Beneath the Headline Growth: Troubling Undercurrents
While NGX has celebrated record-breaking gains, topping ₦70 trillion in total market capitalisation, shareholders warn that the surge is misleading. According to market observers, this expansion is largely driven by:
• Currency devaluation, which inflates naira valuations of a few large-cap stocks
• Concentration of investor activity around a handful of high-performing companies
• Lack of new listings or broad-based growth, especially among mid and small-cap firms
This narrowing of participation makes the market less resilient and more vulnerable to shocks, with fewer options for investors and limited real sector engagement.
Why Companies Are Leaving the NGX
Investors and analysts have identified several recurring themes behind the delisting wave:
• Harsh operating environment
• High compliance and regulatory costs
• Poor market visibility and low liquidity
• Unfavourable legal and business climate
• Weak investor protection and enforcement mechanisms
Rather than viewing public listing as a strategic advantage, many firms are now seeing the Exchange as a burden—an alarming sentiment that reflects deeper structural issues.
The Numbers Tell a Stark Story
Between 2015 and 2025, over ₦950 billion in market capitalisation has been lost due to delistings:
In 2023 alone:
• ₦515.15 billion was erased from the NGX
• Union Bank: ₦193.65B
• Ardova Plc: ₦21.82B
• GSK: ₦19.91B
• Others: Capital Hotels, and more
Q1 2025:
• Four firms exited, accounting for ₦25.27 billion
• MedView Airline: ₦15.79B
• Tourist Company of Nigeria: ₦5.62B
• Union Homes Savings & Loans: ₦2.95B
• Goldlink Insurance: ₦0.91B
The trend shows no sign of slowing—and if left unchecked, threatens to reduce the NGX to a “shallow pool of elite stocks,” as one shareholder group described it.
Shareholders and Analysts Sound the Alarm
Moses Igbrude, President of the Independent Shareholders Association of Nigeria, called the situation a critical challenge, warning that continued inaction would erode public confidence and discourage future listings. He emphasized the need for deliberate collaboration between regulators, government, and industry stakeholders to halt the capital flight.
Patrick Ajudua, President of the New Dimension Shareholders Association, echoed similar concerns. He pointed to prolonged unprofitability, high operational costs, and a lack of true investment incentives as push factors. He also highlighted the absence of strong legal protections for investors, which deters both local and foreign participation.
Expert Insight: A Call to Rethink the Value of Listing
Uwem Olubummo, Team Lead of the Finance Research Department at InvestingPort, warned that the delisting wave exposes deep fractures beneath the surface of headline growth. According to her, a truly healthy capital market must reflect not only growth in numbers but also growth in diversity, access, and value creation.
“This trend is a wake-up call. The NGX needs to re-evaluate its entire value proposition to listed companies. Why stay listed if it offers no strategic benefit?”
She urged regulators to take a more proactive stance—addressing compliance bottlenecks, ensuring investor protections, and making listing more rewarding than burdensome.
What Needs to Change?
Stakeholders believe the way forward lies in:
• Reviewing listing and compliance frameworks to make them more SME and mid-cap friendly
• Providing fiscal incentives and policy clarity for listed companies
• Strengthening investor protection laws and judicial enforcement
• Rebranding the NGX as a growth partner, not just a compliance platform
• Encouraging private sector engagement in market development.
Bottom Line
Delistings are not just corporate decisions—they are red flags about the health of the entire capital market ecosystem. With nearly ₦1 trillion in capital wiped out, stakeholders warn that urgent, coordinated reform is needed to preserve the NGX’s relevance and rebuild it as a dynamic engine of national economic development.
A deepening crisis is unfolding in Nigeria’s capital market as the country grapples with a silent but significant capital erosion: ₦1 trillion lost to company delistings between 2015 and 2025. This unsettling trend has prompted a renewed call from investors and market stakeholders for urgent reforms to revive investor confidence and protect the long-term stability of the Nigerian Exchange (NGX).
The most recent blow came with the delisting of Notore Chemical Industries Plc, a major agro-industrial player and one of NGX’s previously valued stocks with ₦252 billion in market capitalisation. Notore’s exit over the weekend makes it the latest in a disturbing string of departures that are slowly hollowing out the Exchange’s diversity and inclusiveness.
⚠️ Beneath the Headline Growth: Troubling Undercurrents
While NGX has celebrated record-breaking gains, topping ₦70 trillion in total market capitalisation, shareholders warn that the surge is misleading. According to market observers, this expansion is largely driven by:
• Currency devaluation, which inflates naira valuations of a few large-cap stocks
• Concentration of investor activity around a handful of high-performing companies
• Lack of new listings or broad-based growth, especially among mid and small-cap firms
This narrowing of participation makes the market less resilient and more vulnerable to shocks, with fewer options for investors and limited real sector engagement.
Why Companies Are Leaving the NGX
Investors and analysts have identified several recurring themes behind the delisting wave:
• Harsh operating environment
• High compliance and regulatory costs
• Poor market visibility and low liquidity
• Unfavourable legal and business climate
• Weak investor protection and enforcement mechanisms
Rather than viewing public listing as a strategic advantage, many firms are now seeing the Exchange as a burden—an alarming sentiment that reflects deeper structural issues.
The Numbers Tell a Stark Story
Between 2015 and 2025, over ₦950 billion in market capitalisation has been lost due to delistings:
In 2023 alone:
• ₦515.15 billion was erased from the NGX
• Union Bank: ₦193.65B
• Ardova Plc: ₦21.82B
• GSK: ₦19.91B
• Others: Capital Hotels, and more
Q1 2025:
• Four firms exited, accounting for ₦25.27 billion
• MedView Airline: ₦15.79B
• Tourist Company of Nigeria: ₦5.62B
• Union Homes Savings & Loans: ₦2.95B
• Goldlink Insurance: ₦0.91B
The trend shows no sign of slowing—and if left unchecked, threatens to reduce the NGX to a “shallow pool of elite stocks,” as one shareholder group described it.
Shareholders and Analysts Sound the Alarm
Moses Igbrude, President of the Independent Shareholders Association of Nigeria, called the situation a critical challenge, warning that continued inaction would erode public confidence and discourage future listings. He emphasized the need for deliberate collaboration between regulators, government, and industry stakeholders to halt the capital flight.
Patrick Ajudua, President of the New Dimension Shareholders Association, echoed similar concerns. He pointed to prolonged unprofitability, high operational costs, and a lack of true investment incentives as push factors. He also highlighted the absence of strong legal protections for investors, which deters both local and foreign participation.
Expert Insight: A Call to Rethink the Value of Listing
Uwem Olubummo, Team Lead of the Finance Research Department at InvestingPort, warned that the delisting wave exposes deep fractures beneath the surface of headline growth. According to her, a truly healthy capital market must reflect not only growth in numbers but also growth in diversity, access, and value creation.
“This trend is a wake-up call. The NGX needs to re-evaluate its entire value proposition to listed companies. Why stay listed if it offers no strategic benefit?”
She urged regulators to take a more proactive stance—addressing compliance bottlenecks, ensuring investor protections, and making listing more rewarding than burdensome.
What Needs to Change?
Stakeholders believe the way forward lies in:
• Reviewing listing and compliance frameworks to make them more SME and mid-cap friendly
• Providing fiscal incentives and policy clarity for listed companies
• Strengthening investor protection laws and judicial enforcement
• Rebranding the NGX as a growth partner, not just a compliance platform
• Encouraging private sector engagement in market development.
Bottom Line
Delistings are not just corporate decisions—they are red flags about the health of the entire capital market ecosystem. With nearly ₦1 trillion in capital wiped out, stakeholders warn that urgent, coordinated reform is needed to preserve the NGX’s relevance and rebuild it as a dynamic engine of national economic development.