N18 Billion Investments on the Line as NGX Delists 3 Companies, Lists Next Steps for Investors

• Capital Oil Plc, a notable oil company, is one of three companies recently delisted by the Nigerian Stock Exchange Limited
• The statement listed out several regulatory infractions from the affected companies, despite repeated warnings over the years
• The NGX has also advised the investors who hold shares in these companies on what to do next

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The Nigerian stock market has now seen the erosion of about N18 billion worth of shareholders' funds, with the recent regulatory cleanup from the Nigerian Exchange Limited (NGX).

The NGX delisted three companies – Capital Oil Plc, Goldlink Insurance Plc, and Medview Airline Plc, over repeated regulatory infractions.

The statement from the NGX was signed by Godstime Iwenekhai, Head, Issuer Regulation Department, and dated April 3, 2025.

The statement announced that the companies were no longer considered suitable for continued listing, having repeatedly failed to comply with post-listing requirements.

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Iwenekhai added, in the statement, that the delisting is not meant to serve as a punishment, but to ensure transparency in listed stocks. He noted that once the companies resolved all the issues, they may reapply in the future.

A recent Legit.ng analysis had revealed that over 136 companies have been delisted from the NGX in the last 24 years.

NGX gives reasons for delisting Capital Oil, others

According to the NGX, this move will preserve the integrity of the Nigerian capital market and protect investors.

It added that these companies had failed to file their audited financial statements or adhere to the corporate governance standards, thereby violating the NGX transparency and disclosure standards.

They had also recorded prolonged periods of inactivity in the stock market, especially the Medview Airlines Plc, which had not recorded any trading activity for almost 42 months, starting from October 15, 2021.

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The statement noted that Medview Airlines Plc also had a free float deficiency of 14.16%, way below the required threshold for publicly listed firms.

Capital Oil Plc, once known to be a notable player in the downstream petroleum sector, has struggled operationally and financially for years, failing to submit its financials or make relevant disclosures.

The decision to delist these companies was approved by the NGX regulation board about 10 months earlier.

N18 billion of investors' funds on the line

At the time of delisting, Medview Airline Plc was the 83rd most valuable stock on the NGX, with a market capitalisation of N15.8 billion.

Capital Oil Plc had an estimated market capitalisation of about N1.17 billion, and was the 140th most valuable stock on the NGX.

The GUARDIAN reports that Goldlink Insurance Plc had investors' funds worth about N910 million, and had been on the regulatory watchlist for years, with multiple warnings and suspensions, but all of the issues remained unresolved.

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Combined, this amounts to about N18 billion worth of shareholders' funds, now being wiped out from the Nigerian capital market.

Next steps for shareholders

The statement urged investors with these companies to contact the Central Securities Clearing System (CSCS) or seek guidance from their brokers.

Investment analyst, Olumide Adesina, explained to Legit.ng that when a company is delisted from the NGX, the shareholders are to expect cash settlement from their brokers.

Since the shareholders had made their purchase through these brokers, it is from the same brokers that they can expect settlement at the end of the entire process.

NGX delists Flour Mills of Nigeria Plc

In related news by Legit.ng, the entire issued share capital of the Flour Mills of Nigeria (FMN) was delisted from the Nigerian Exchange.

This was a follow-up on the December 16, 2024, announcement suspending trading in the securities of FMN.

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Excelsior Shipping took over as the majority shareholder, while minority shareholders would wait for their stockbroker to settle them with cash for shares.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng