The Nigerian Exchange Limited (NGX) has officially announced the closure of its Alternative Securities Market (ASeM) Board, effective July 1, 2025, according to a disclosure in its weekly market review published on Friday, October 10.
This decision marks the end of an era for the board, which was designed to serve small to mid-sized companies with growth potential but less stringent listing requirements.
The ASeM Board was created by the NGX to provide a platform for emerging companies to access the capital market without the rigorous financial and corporate governance standards demanded by the Main Board. It aimed to support entrepreneurship, particularly among indigenous businesses, by offering a more accessible listing process.
Over the years, the board hosted several companies, including Juli Plc, Smart Products Nigeria Plc, Rokana Industries Plc, and FTN Cocoa Processors Plc, among others. However, persistent issues, including low investor interest, poor compliance by listed entities, and weak corporate disclosures, have undermined its objectives.
Migration and delisting
Following the wind-down, the NGX announced that eligible companies will be migrated to the Growth Board—a newer segment tailored for growth-oriented companies with stronger fundamentals and better corporate governance.
Juli Plc is currently undergoing migration to the Entry Segment of the Growth Board, having met the minimum requirements for transfer. These include improved financial performance, minimum capital thresholds, and adherence to post-listing obligations.
In contrast, Smart Products Nigeria Plc will not be joining its peers. According to the NGX, the company failed to meet the necessary listing standards for the Growth Board, including financial disclosure requirements and governance practices. As a result, its shares have been suspended from trading effective October 8, 2025, pending full delisting from the Nigerian Exchange.
This suspension means that Smart Products’ shares will no longer be traded on the NGX, and the company will no longer enjoy the benefits and obligations of a publicly listed entity.
Implications for investors and the market
The delisting of non-compliant firms reflects NGX’s ongoing efforts to sanitise the market and improve investor confidence. By consolidating low-performing segments and promoting transparency, the Exchange hopes to attract long-term capital and support viable businesses.
Investors holding shares in Smart Products Nigeria Plc are advised to contact their stockbrokers for guidance on the next steps, including options available after delisting. Meanwhile, the NGX has reaffirmed its commitment to developing a more robust market structure capable of supporting Nigeria’s economic growth and private sector development.
