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The sad reasons many previously-listed companies are no more 

Today, most of the products we used to love while growing up and the companies that manufactured them are no more.



The sad reasons many previously-listed companies are no more 

A few days ago here at the office, some Nairametrics staff members were reminiscing about some of the popular Nigerian products they grew up loving as kids. Today, most of these products and the companies that manufactured them are no more. They’ve all closed shop, and the sad reasons for this will sadden you even more as you read through this article. This is because meaningful solutions have not been put in place to forestall more liquidations in the future 

The context: Happy Independence Day Nigeria? 

Today marks Nigeria’s 59th year anniversary since becoming an independent country, following more than a century of colonial rule by Great Britain. While it is a tradition to always celebrate October 1st, the truth remains that there really isn’t much to rejoice about after all. From the business point of view, for instance, Nairametrics can confirm that many of the companies that that existed in Nigeria prior to 1960 have collapsed. This is nothing to be happy about. 

[READ MORE: Nigerian banks top list of NSE companies with highest employees]

ABC Merchant Bank Ltd

Delisted and liquidated companies 

Established in 1960, the Nigerian Stock Exchange (NSE) has grown to become one of the top five biggest exchanges on the African continent. However, the bourse has witnessed a considerable number of delisting over the years. Information obtained from the NSE website has shown that about 109 Nigerian companies were delisted between 2002 and August 2019 alone. 

Some examples of such companies are… 

Note that even though some of these delisted companies are still in operation today as privately-owned entities, a significant number of them have ended up shutting down. Take the case of UTC Nigeria Plc for instance, for many years, the Swiss-owned company, which was established in 1932, thrived and diversified into different sectors. It was a perfect example of an excelling Nigerian company until several factors and policies affected its profitability and eventually chased away its core investors. In 2014, the company was overtaken by its creditors, then on May 2nd 2017, it was forced to delist from the NSE.  

Albarka Airline Plc is another delisted Nigerian company that no longer exists today. The airline, which was incorporated in 1999, offered local flight services. Unfortunately, the company faced financial troubles and was unable to recapitalise in line with the Federal Government’s directive. Failure to recapitalise meant that it was grounded from flying in the Nigerian airspace. It was subsequently delisted from the Nigerian Stock Exchange in 2011.  

Nigeria Textile Mills Plc voluntarily delisted from the Nigerian Stock Exchange in 2008. The company is one of the many textile companies in Nigeria that have experienced operational difficulties over the years due to unconducive business environment. Even a N100 billion fund set aside by the government to revive the textile industry could not help to ameliorate the situation.  

Deal book 300 x 250

Many banks collapsed between 1994 and 2006 

To buttress how truly sad the situation is, the number of collapsed Nigerian banks between 1994 and 2006 stood at 45. According to the Nigerian Deposit Insurance Corporation (NDIC), these banks’ licences were revoked by the Central Bank of Nigeria after a Federal High Court issued winding up orders for them. The NDIC was then appointed as the liquidator of the banks. Most notable among these 45 banks are: 

  • ABC Merchant Bank Ltd which was wound up on January 16, 1998
  • Lobi Bank of Nig. Ltd also closed down on January 16, 1998
  • Mercantile Bank of Nig. Plc, January 16, 1998
  • Liberty Bank Plc, January 16, 2006
  • Rims Merchant Bank Ltd, December 22, 2000, etc. 

ABC Merchant Bank Ltd


Why did these companies shut down?  

A number of factors were responsible for these companies’ collapse, including unfavourable government policies and difficult operating environment. Other factors such as limited access to funding and lack of basic infrastructure like roads and electricity, also added to the problem by increasing these company’s operational costs, thereby hampering their growth potentials and profitability. It should also be noted that some of these companies collapsed due to poor management.  

[READ ALSO: 10 Nigerian companies pay a combined N187.9 billion taxes in first half of 2019]

Urgent actions needed 

There is no gainsaying the fact that it has become more necessary than ever before for the Nigerian Government to fix the country’s economic problems. To begin with, the country’s decayed infrastructure must be fixed. Most specifically, the electricity challenge must be resolved once and for all. Many companies in the country expend a lot of money generating their own electricity a situation that should never be the case.  

Lastly, Nigerian regulators should continually improve on their regulatory functions, in order to checkmate cases of corporate governance lapses before they get out of hand.  

These are the only ways to ensure that fifty-nine years from now, we will not be referring to our presently-existing companies as “delisted and liquidated” Nigerian companies.  



Emmanuel holds an MSc. in International Relations and a B.A in Philosophy & Logic, both from the University of Ibadan. He is a communications professional. As a Lead Business Analyst at Nairametrics, he focuses mostly on quoted companies, their products/services, and the economy in which they operate. Emmanuel is also experienced in the areas of corporate communication, brand communication, corporate storytelling, public relations, business research, management/strategy, etc. You may contact him via his email-



  1. Murphy

    October 2, 2019 at 12:26 am

    How do i become an independent banker

  2. Folorunso Akiyode

    October 2, 2019 at 1:07 pm

    While it is true that the various governments (not just the FGN) have a lot to do to improve infrastructure etc, anyone familiar with the nation’s economic history between 1960 and now will confirm that most of the companies listed here crashed, principally due to, poor and perhaps fraudulent management and financial practices. It will be noted that many more have sprung up and prospered in the same periods that these closed down, through implementation of best practices, praoctive solutions, re-engineering/reinvention of business focus/model, contemporariness etc.
    The article could also have achieved some balance by enumerating some steps recently being/having been taken by various governments to foster ease of doing business in the country.

    • Stanley

      October 2, 2019 at 4:20 pm

      I agree with you about the poor corporate governance in some Nigerian companies. I have always found it particularly hard to understand why shareholders continue to bail out their companies from trouble thru repeated rights issue for instance, without firing the board and top management, especially if it’s not the first time. Though I don’t have problems about rights issues if it’s for expansionary or strategic acquisition reasons. I think that Nigerian shareholders need to hold their management to account better, especially with some of them enjoying enviable conditions of service at the company’s expense.

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The Wisdom behind Jaiz Bank

Not only have these business magnates from the northern part of the country created something of an oligarchy, they also obtained the backing of Saudi Arabia’s Islamic Development Bank.



The idea of taking out loans without interest rates as the future of banking might still sound as foreign as flying cars to many, but it is already in motion.

Currently, there are over 300 Islamic banks in over 51 countries, including the United States. In Nigeria, Jaiz bank stands at the forefront of this revolution. The bank was created out of the former Jaiz International Plc, which was set up in 2003/2004 as a Special Purpose Vehicle (SPV) to establish Nigeria’s first full-fledged Non-Interest Bank.  

Jaiz and its unconventional Banking methods 

With Islamic banking, there are two main peculiarities and none of them confer a bias on only members of the religion. The first is the sharing of profit and loss, and the other is the prohibition of the collection of interest as stipulated in Islamic law – otherwise regarded asriba.”

Both concepts feed off each other in that to augment the lack of interest gains, equity participation is employed. In other words, the borrowing business will pay back the loan without interest and also give the bank a share of its profits.  

Jaiz bank is the first non-interest (Islamic) bank operating in Nigeria. Being that Islamic banking is grounded in Sharia or Islamic principles and morals, the financial institution does not support businesses that could impact the society negatively.

So even as it finances business, and shares their risks and profits accordingly, it does not partner with businesses involved in betting, alcohol, and so on. Needless to say, their methods have served them well.

From being founded in 2003, to 2011 when it received a license from the CBN to operate as a regional bank, to its official commencement as Jaiz Bank Plc in 2012, the institution has expanded its services exponentially.

Today, the company is owned by over 26,000 shareholders who are spread over Nigeria’s six geopolitical zones and its balance sheet has grown from N12 billion in 2012 to about N62 billion, with asset financing of over N30 billion. The bank operates 27 branches and has a full service range of offerings.

The force behind  


Behind the bank’s recorded success is a strong shareholder base, spread across one foreign shareholder, 108 Institutional, 220 Corporate, 26,157 Individuals, 156 Joint, 6 States and 106 Local Government shareholders.

However, seven major shareholders control a total of about 65% of the total share capital of the bank. They include: Dantata Aminu Alhassan having 5.24%, Altani Investment Limited with 7.47%, Dangote Industries Ltd wit 8.48%, Islamic Development Bank (IDB) with 8.50%, Indimi Muhammad with 9.28%, Dantata Inv’t & Sec. Ltd with 12.49%, and, former minister, Mutallab Umaru Abdul with the highest stake of 13.50%.  

Not only have these business magnates from the northern part of the country created something of an oligarchy, they also obtained the backing of Saudi Arabia’s Islamic Development Bank.

Whether or not the oligopoly poses a threat to the corporate governance and decision-making power of the rest of the bank’s shareholders is a question that can only be answered based on the happenings that arise. 

The Managing Director of the bank, Hassan Usman, had however noted that “fundamental to the vision and mission of Jaiz Bank is to create wealth for MSMEs.” He also assured all that the bank is set to ensure maximum benefits is attained by all stakeholders. 

Performance and Investment Outlook 


The company has done well in building up funding to keep its operations afloat especially given its style of banking. Just last year, it had secured a N3 billion financing facility from the Bank of Industry (BOI) to boost and develop their operations and give zero-interest loans to Micro, Small and Medium Enterprises (MSMEs) within the country.

The company’s performance has also been noteworthy. In 2019, the company declared a profit after tax of N1.79 billion which was a 114% growth as compared to the N834.36 million recorded at the end of 2018.

The company is on a growth trajectory; currently, with its low share price of N0.66 on a 52 week average of 0.34 and 0.82, it is a convenient buy.

With a price-to-earnings ratio of 9.27, it shows good signs of growth. Its model might just be the thing to spur economic growth as its result-based gains will not just increase the income of the bank but also aid the growth of small businesses within the nation. 

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Nigerians now seeing CBN Intervention funds as audio money

Despite the rhetoric, majority of Nigerians are still wary of the so called N1 trillion intervention fund.



CBN’s N154.38 billion T-bills auction over subscribed by 46% as rates fall marginally, internet banking

When the COVID-19 pandemic came with all her fangs, world leaders swung into action with the creation of intervention funds and palliatives to ease the burden of the average citizen.

In Nigeria, asides the palliatives of foodstuff given by state and federal governments alike, drums were rolled when the Central Bank of Nigeria disclosed its support for critical sectors of the economy.  

The apex bank first initiated a fund of N50 billion soft loan to small businesses. The N50 billion Targeted Credit Facility (TCF) was to serve as a stimulus package to support households and micro, small and medium enterprises (MSMEs) whose economic activities have been significantly disrupted by the COVID-19 pandemic.

The financial institution for the scheme is NIRSAL Microfinance Bank (NMFB) and the interest rate under the intervention was fixed at 5% per annum (all-inclusive) up to February 28, 2021, and thereafter, the interest on the facility shall revert to 9% per annum (all-inclusive) as from March 1, 2021. 

Next, it increased its intervention by another N100 billion in loans to support health authorities to ensure laboratories, researchers, and innovators work with global scientists to patent and produce vaccines and test kits in Nigeria so as to prepare for possible crisis ahead.

Finally, it increased its intervention in boosting local manufacturing and import substitution by another N1 trillion across all critical sectors of the economy. 

Despite the rhetoric, majority of Nigerians are still wary of the so called N1 trillion intervention fund. The CBN is yet to issue any policy guideline for its implementation and failed to provide further details in its monetary policy committee meeting held last week. This has led many to start to view these promises as “audio money” a social media term for financial promises that are never fulfilled. 

The journey thus far 

The Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL) Microfinance bank, on behalf of the Central Bank of Nigeria (CBN), has started the disbursement of the N50 billion Targeted Credit Facility (TCF) to the beneficiaries. As at April, it noted that it had received over 80,000 applications for the facility, out of which 40,000 of them were households.  

As expected with such funding, the sentiments have been both positive and negative. While some have said they have gotten the funds, others have complained incessantly about the various challenges encountered in the process of obtaining or applying for the loans. Pockets of tweets revealed the general struggles of obtaining the loans. Several applicants have complained about not being able to open accounts or access the facilities and others have complained about making inquiries without responses. 


Bola Murtala explained to Nairametrics that “I applied online around the 30th of April, filled out the forms, and submitted. After I got a reply in my email that my application has been received, but then I haven’t heard back from them since then. I wouldn’t know what’s going on but I have seen people who say they got an approval. How far it is true, I wouldn’t know.” 

Another applicant, Okey Adinde, said “I applied and received a message telling me that I will be contacted if there was any other document required and if I didn’t send that document after 72 hours after the mail, my application will be declined. Since then, I have not heard from them.” 

One Twitter user also complained about being asked to tender collaterals even though the loans do not require any.  

Clearly, the program is not without its own hiccups. During an interview with Channels TV, the Managing Director of NIRSAL Microfinance Bank Plc, Abubakar Kure, explained that the nationwide lockdown and restrictions had a major challenge to the smooth processing of the facility. Yet, on the company’s website, it claims to have disbursed over N25 billion and going. 

However, there are positive comments too: 

Fidelis Ayebae, the chief executive officer of Fidson Healthcare Plc. explained that his company had received N2.5 billion from the central bank’s coronavirus intervention fund. Dollar scarcity and a weakening naira had heightened the inflation on inputs of many pharmaceutical firms in the country. 


“You now have a situation where nobody is holding letters of credit, no manufacturer is getting anything from their suppliers abroad because even the ones that we owe, we are not able to pay,” said Ayebae, who also heads the 180-member pharmaceutical group of Nigeria’s manufacturers association.

In truth, sentiments on the program is still burdened with the same lack of faith and trust in systemic leadership and Nigerians have had their fair share of disappointments. Even as the CBN and NIRSAL have set off on a good note by augmenting businesses and individuals in key areas to withstand the impact of the pandemic, the need for transparency cannot be overemphasized.

By employing tighter systems, particularly in the area of customer relations, while also clearly disclosing its activities, the system will assuage the fears of Nigerians whose faiths have been battered by deceptive leadership amongst others.

It is only then that they’ll know for sure that the days of audio money are over and that its leaders can be trusted. 


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Analysis: Total Nigeria needs a financial overhaul

 Total Nigeria’s Q1’20 results are a testament that some might have it worse than others as it recorded a revenue drop of 9.3% to N70.2 billion



Total Nigeria, Analysis: Total Nigeria needs a financial overhaul

The Oil Industry has had a particularly tough year, owing primarily to the novel pandemic. The International Energy Agency (IEA) predicts that the global oil demand is expected to further decline this year as Covid-19 spreads around the world, constraining travel as well as other economic activities.

Organizations like Total depending on international trade will be forced to scale down operations until restrictions ease off. However, Total Nigeria’s Q1’20 results are a testament that some might have it worse than others.

The period recorded a revenue drop of 9.3% to N70.2 billion in the first quarter of this year compared to Q1 2019. Total earns its revenue from three main sectors namely: Networks, General Trade, and Aviation. Revenue from Aviation fell by 39.5%. The decline in Networks is attributed to the reduced demand as a result of the enforced lockdown and restriction on travel across the nation.

READ ALSO: Analysis: MTN’s blow out Q1 profit vs Covid-19 headwinds  

Yet, it is clear that the company had its own challenges pre-COVID-19. In the quarter, it attained a loss after tax of N163 million which was 65.6% better than the loss after tax of the comparative quarter; it is overwhelmed by a myriad of distinct issues.

First off, its revenue has experienced a steady fall over the years; reasons for this is tied largely to its lack of importation of petroleum products.

It is also burdened by inefficiencies in its operations evident in its high operational and direct expenses, as well as its high debt over the past years. The company has carried on huge loans and borrowings in its books: N40.6 billion in 2019 and only a marginal reduction of N2.2 billion in the current year.

(READ MORE:Nigeria’s Bonga crude oil export terminal shut down)

Even higher are its expenses after an 8.38% reduction in the just-released results, it arrived at N69.7 billion for Q1 2020. Amongst its high operational expenses is the high and increasing technical fees it pays to its parent company. From N251 million in the first quarter of last year, it incurred around N700m in the year under review. It also has cash flow issues with about N22b in negative cash and cash equivalents. In its 2019 report, it revealed that the year had been tough with its cost of doing business rising exponentially as evident in its interest expense, 395% higher than the previous year as a result of repayment for products and a high level of borrowing.

Total Nigeria records loss for the first nine months of 2019, Analysis: Total Nigeria needs a financial overhaul


The company, in its last full year annual report, noted that to make significant savings to both operational and capital expenditure costs, a series of initiatives relating to cost efficiency, process optimization, and significant reduction of working capital requirement and finance costs, were put in place and are in motion for this year.

READ ALSO: STERLING BANK: Reduced fee income, weak operating efficiency drives steep decline in pre-tax profit

As Dr. Fatih Birol, IEA’s Executive Director put it “The coronavirus crisis is affecting a wide range of energy markets – including coal, gas, and renewables – but its impact on oil markets is particularly severe because it is stopping people and goods from moving around, dealing a heavy blow to demand transport fuels.”

However, Total’s position goes beyond the impact of the pandemic. Its rebound rests on its ability to carry on with cost control and lower debt commitments, together with the speed of the containment of the virus. That said, the company might need to raise capital soon while also coming up with formidable strategies to strengthen its business model.

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