In protecting investors from investing in non-performing or moribund companies, the Nigerian Stock Exchange (NSE) has so far delisted 85 companies from its daily official list between 2002 to date. This is according to a report by The Financial Watch.
Delisting involves removal of listed securities of a company from a stock exchange where it is traded on a permanent basis. As listed on the official website of the NSE, some of the firms were delisted for different reasons ranging from voluntary, regulatory, nationalised, merged or acquired reasons.
So far 61 out of the 85 firms were delisted on the Nigerian bourse based on regulatory reasons; this constitutes 71.76 percent of the total number of companies delisted in the review period, while 13 of the firms delisted voluntarily.
Three were delisted as a result of their nationalisation, Bank PHB Plc, Afribank Plc and Spring Bank Plc, which emerged as Keystone Bank Limited, Mainstreet Bank Limited and Enterprise Bank Limited respectively.
However, seven were delisted based on merger with other entities, while Ecobank Plc was delisted from the NSE based on absorption by Ecobank Transnational Incorporated (ETI) and now Ecobank Nigeria Limited.