NGX delists Tourist Company of Nigeria, Union Homes

Nigerian Exchange Limited (NGX) has delisted Tourist Company of Nigeria Plc and Union Homes Savings and Loans Plc, wiping nearly N8 billion from the overall market capitalilsation.

The move, which followed a review of their compliance with listing standards, raises concerns about the increasing wave of delisting and its impact on investor confidence.

Tourist Company of Nigeria, previously the 107th most valuable stock, had a market capitalisation of N5.62 billion, accounting for 0.0087 per cent of the NGX equity market before its removal.

Similarly, Union Homes Savings & Loans, ranked 122nd, had a valuation of N2.95 billion, representing 0.0046 per cent of total market capitalisation. The development comes just weeks after Flour Mills of Nigeria Plc was also delisted, fueling speculation that other companies: MRS Oil Nigeria Plc, Wapic Insurance Plc, International Energy Insurance Plc, and Lafarge Africa Plc (WAPCO) might soon follow.

According to the NGX, the delisting aligns with its commitment to corporate governance, transparency and investor protection, ensuring that only firms meeting financial and disclosure standards remain listed.

However, shareholders have expressed dissatisfaction on the delisting of the firms, warning that the trend threatened the stability of the capital market.
They noted that many listed firms, particularly in the manufacturing sector, were struggling with macroeconomic headwinds, regulatory pressure and industry-specific challenges that had eroded profitability.

President of the New Dimension Shareholders Association of Nigeria, Patrick Ajudua, lamented that investors were often shortchanged during delisting, urging regulators to prioritise shareholder protection.

Similarly, President of the Independent Shareholders Association of Nigeria, Moses Igbrude, criticised the management of affected companies for failing to meet expectations. He advised them to either comply with NGX listing requirements or consider migrating to the NASD Over-the-Counter (OTC) market as an alternative.