According to information available on the Nigerian Stock Exchange website, about six companies are in the process of delisting their issued share capital from the Nigerian bourse. This follows the delisting of a total number of seven companies between January and November this year. On this week’s company profile, we shall be focusing on these companies as we try to understand why they could soon be gone from the NSE.
Why companies delist
There are two main reasons why companies delist from the NSE. The first one entails punishment for companies who violate NSE’s listing rules. The NSE periodically fines defaulting companies, whilst demanding that such companies address their corporate governance lapses. As Nairametrics reported recently, the latest X-Compliance report showed that the NSE made as much as N143.6 million in 2019 by imposing fines on defaulting companies.
But sometimes, fines are not just enough. The NSE is often forced to voluntarily delist companies whose infractions have become persistent.
On the other hand, a good number of companies have also voluntarily delisted from the NSE for various reasons, including the desire to become privately owned entities.
Delisted companies in 2019
Note that so far in 2019, a total of seven companies have been delisted from the NSE. The companies are Diamond Bank Plc, Great Nigeria Insurance Plc, Newrest ASL Nigeria Plc, First Aluminium Nigeria, Fortis Microfinance Bank Plc, Skye Bank Plc, and Dangote Flour Mills Plc.
Focus on the companies that could be delisting soon
Out of the six companies that are in the process of delisting (DIP) from the NSE, four could be forcefully delisted due to their persistent non-compliance to NSE’s listing rules. The remaining two, on the other hand, could be voluntarily delisting. The companies are:
- Evans Medical Plc
- Nigeria-German Chemicals Plc
- Amino International Plc
- Roads Nigeria Plc
- Tourist Company of Nigeria Plc
- DEAP Capital Management & Trust Plc
What you should know
Evans Medical Plc is a Nigerian pharmaceutical company that was established in 1954 and listed on the Nigerian Stock Exchange in 1979. Over the years, the company has been plagued by many challenges ranging from increasing competition and corporate governance lapses. The latest NSE X-Compliance report indicated that the company has not submitted any quarterly financial statements from 2016 to 2019. At this rate, the NSE may have no choice but to forcefully delist the company.
Nigeria-German Chemicals Plc has also not been obeying the listing rules of the NSE. The latest NSE X-Compliance report also noted the company has not filed any financial statement since Q3 2014 till date. It will not come as a surprise if the company is delisted from the Nigerian bourse any moment from now due to regulatory reasons.
[READ ALSO: First Aluminium finally delists shares from NSE]
Note that the company is a chemical/healthcare company which was incorporated in 1964. It was initially known as Nigerian Hoechst Plc before it rebranded and changed to its name in 1995. It was listed on the NSE in 1979.
Amino International Plc is also in the process of delisting primarily because it abused NSE rules by not disclosing its quarterly financial statements since 2015 till date. The company, which engages in manufacturing of different kinds of personal and industrial products, was incorporated in 1981 and listed on the NSE in 1990.
Roads Nigeria Plc is a civil engineering firm that is in the business of construction of roads, bridges, dams, airfields, and real estate. The company was incorporated in 1974 and is headquartered in the Northern Nigerian city of Sokoto.
Unfortunately, the company has not released its quarterly financial statements since 2014. This is a major violation of the NSE listing rules which could result in the company being delisted soon.
The delisting of the Tourist Company of Nigeria Plc from the Nigerian Stock Exchange may be a voluntary move by the company’s owners. The company has recently been plagued by ownership tussles, with some shareholders calling for it to be liquidated. The hospitality company was incorporated in 1964.
DEAP Capital Management Trust Plc was incorporated in 2002 and listed on the NSE in 2007. It is unclear whether its delisting is voluntary or regulatory. However, it appears the company is struggling financially as its latest financial disclosure shows.
Only 68.8% of Nigerians believe Covid-19 is real – SBM Intel
The survey revealed that 68.8% of Nigerians believe Corona is real, 14.4% are not sure while 16.7% don’t believe it’s real.
As the country and indeed, the rest of the world continues to be ravaged by the pandemic, only 68.8% of Nigerians believe Covid-19 is real. While 39.9% of Nigerians say they will take the vaccine, 63.3% are opposed to another lockdown.
These and more details were disclosed by SBM Intel, a geopolitical research and strategic communications consulting firm in its recent Covid-19 report titled, ” Covid in Nigeria: The Second Wave”.
“The age demographics of the correspondents for the survey were chosen across a broad age category., “The majority of the respondents were between 28-40 years (36.7%) followed by those between 18-27 years (24.0%), then 41-55 years (22.2%) which represents the active (working) population. 9.5% of the respondents were older than 55 years, and a smaller percentage, 7.7% were younger than 18 years,” the report revealed.
If Corona is real…
- The survey revealed that 68.8% of Nigerians believe Corona is real, 14.4% are not sure while 16.7% don’t believe it’s real.
- Ekiti, Enugu, Kogi, Nasarawa, and Sokoto states had less than 50% of their respondents stating that the virus is real. These states have relatively low official death rates, Ekiti (7), Enugu (21), Kogi (2), Nasarawa (13) and Sokoto (20) compared to states with high death rates as Lagos (250), the FCT (106) and Edo (117).
An interviewee said: “The virus is real, but does not believe that it is present in Nigeria because people are not dying and they are not observing most of the precautions.”
- The report disclosed that most people of all age categories don’t deny the existence of a virus, however, people who are older than 55 years have the highest percentage of respondents who are unsure of the existence of coronavirus, citing reduced social interactions and smaller circles which keeps them away from contact with infected persons.
If people are taking the right steps to prevent the virus
Despite the fact that over 68% of the respondents believe that the virus is real, 59.5% of the respondents representing a majority of the respondents do not think that people are taking the right measures to prevent COVID-19.
- “More interestingly, in some public institutions like banks and eateries where private security personnel enforces compliance with mask-wearing and hand sanitizing, people tend to comply just because such enforcement serves as an entry ticket. Researchers observed that once many people got into such premises, they took off their masks and started to flout other precautionary measures.
- “Only 39.9% of the respondents said they will take the vaccine. An almost equal proportion of respondents (35.9 %) said they will not take the vaccine which the government announced is to arrive in the country at the end of January, and 24.1% are unsure of their position at the moment.
- Reasons for not wanting to receive the vaccine include mistrust with the government and religious beliefs.
- “Some respondents held that it is a religious war to contaminate the children of God with evil substances. Some believe that the vaccines are a tool to depopulate Nigeria, while others expressed concern about the effectiveness ratio and the side-effects that the vaccine might have,” SBM said.
In case of another lockdown
- 63.3% of Nigerians are opposed to another lockdown. The report cited the number is much lower than the past report which revealed 90.24% were opposed to the idea of another lockdown.
- 15.1% are on the fence on this issue and only 21.6% of the respondents would support another lockdown.
- Opposition to lockdowns was linked to economic and security impacts witnessed during the previous lockdown as the economy contracted to lead to unemployment and increased hardship for Nigerians.
What you should know
- Nairametrics reported that the Federal Government said that Nigeria is not contemplating another lockdown and urged Nigerians to ignore social media posts rumouring of the possibility of another lockdown.
- President Muhammadu Buhari already disclosed in October 2020 that the Nigerian economy is too fragile to go into another lockdown.
- Professor Julius Ihonvbere, Chairman, House Committee on Basic Education & Services, said the Federal and States governments should not impose a lockdown, but rather focus on serious control measures to help prevent the spread of the coronavirus.
COVID-19: FG to acquire vaccines that need less cooling
The FG has stated that it is in talks with Russia and India to procure vaccines that are less dependent on cooling facilities.
The Nigerian Government says it doesn’t plan to over-invest in Covid-19 vaccines that require extra cold storage and that it will prioritize vaccines that don’t require much cooling.
This was disclosed by Faisal Shuaib, National Primary Health Care Development Agency Chief in a briefing with newsmen on Tuesday reported by Reuters.
“Our plan now is not to over-invest on ultracold equipment for vaccines like that of Pfizer vaccines, but go for vaccines that need less cooling facilities.
“We are currently engaged in talks with Russia and India to get more vaccines,” he said.
What you should know
- Nairametrics reported earlier this month that the Federal Government stated that the National Primary Health Care Development Agency (NPHCDA) with its partners, is working to fix healthcare value chain roadblocks that may affect the fair distribution of Covid-19 vaccines.
- The FG also disclosed through the NPHCDA its initial distribution plan for vaccines with the highest share of vaccines going to Kano State 3,557; Lagos 3,131; Katsina 2,361; Kaduna 2,074; Bauchi 1,900; Oyo 1,848; Rivers 1,766; Jigawa 1,712; Niger 1,558; Ogun 1,473; Sokoto 1,468; Benue 1,423; Borno 1,416; Anambra 1,379; Zamfara 1,336; Delta 1,306.
Covid-19: Oxygen demand in Lagos State has risen 5 times – Sanwo-Olu
Governor Sanwo-Olu has lamented the rising second wave of the pandemic in Lagos as the demand for oxygen increases by 5 times.
The Lagos State Governor, Babajide Sanwo-Olu has warned that the rising second wave of the pandemic in Lagos has seen the demand for oxygen rise 5 times from 70 six-litre cylinders per day to 350 six-litre cylinders at Yaba Mainland Hospital alone.
The Governor also urged that all malaria-like symptoms should henceforth be considered as COVID-19 virus infection unless and until proven not to be so.
This was disclosed in a statement released by the Lagos State Government on Tuesday.
“Over the last few weeks, the demands for oxygen has risen from 70 six-litre cylinders per day to 350 six-litre cylinders in our Yaba Mainland Hospital. This is projected to more than double to 750 six-cylinders, before the end of January 2021,” the Governor said.
He added that the State Government has decentralized provision of oxygen and other services needed for Covid-19 patients, citing provision of oxygen kiosks.
“ln addition to providing oxygen at our isolation centres, the Lagos State Government has decentralized the availability of oxygen across the State through the provision of 10 oxygen and sampling kiosks. Oxygen therapy and other related services will be provided to patients that require them.
“Five of these 10 oxygen centers have been commissioned while the remaining five will be ready for use within the next four weeks. It is our expectation that these sampling kiosks would be easily accessible to residents that require oxygen therapy at the level of LGAs as stabilization points prior to onward transmission to our Isolation centres, if required.
“This strategy is to further increase the fighting chance of Lagos residents that have contracted the virus and require immediate oxygen therapy,” he stated.
The Governor said that Lagos is closely monitoring plans by the FG to acquire vaccines and said the State has also resumed discussion with potential manufacturers. He also said the State is building its own regulatory framework for vaccine distribution.
“We are closely monitoring ongoing action by the Federal Government to procure COVID-19 vaccines for use in Nigeria. We have also opened discussions with vaccine manufacturers so that when the vaccine comes eventually we can ensure that Lagosians are catered for.
“In the meantime, we are developing a strategy that will articulate the criteria, guidelines and regulatory framework for providing and monitoring vaccinations in Lagos.
“The Lagos State Government is actively partnering with the private sector in the management of the COVID-19 pandemic, in the areas of testing, oxygen deployment, as well as the clinical management of moderate to severe cases. These partnerships have helped enhance the State’s response to the ever-changing circumstances of the pandemic,” Sanwo-Olu added.
What you should know
- The Lagos State Government earlier disclosed that its bed occupancy levels at its public and private COVID-19 care centres increased to 51 per cent.
- The Federal Government also alerted Nigerians that hospitals across the country are running out of facilities to handle more serious cases of coronavirus infections as the virus is spreading fast with mild symptoms in some victims and severe illnesses and death in others.
- Nairametrics recently reported that the Federal Government, through the Ministry of Finance, announced the sum of N10 billion for the production of vaccines in Nigeria, to fight the coronavirus.