Oil Nigeria PLC announced her intention to voluntarily bring her actions from Nigerian Exchange Limited (NGX) following a strong financial performance in 2024.
The decision, which was approved by shareholders during an extraordinary general meeting (EGM) held on June 25, 2024, comes at a time when the Nigerian stock market experiences renewed momentum, with the All-Share index (ASI) recording stable gains.
The company declared a significant increase of 71.2% of income, reaching 312.2 billion Nairas and a profit after tax of 6.49 billion Nairas, marking growth of 62.2% in annual shift. These robust results reflect the solid positioning of the MRS Oil market, in particular following its strategic purchase of refined products from the Dangote refinery, which attracted customers concerned with fuel efficiency.
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Despite these positive financial results, Ms. Oil cited several reasons for which her decision to leave the NGX, including the increase in the costs of maintaining a public list, the need for greater operational flexibility and the challenges posed by the complete deregulation of the high -end engine spirit (PMS). The company has recognized that if recent deregulation has led to an increase in fuel prices and a drop in sales volume, overall income growth has remained strong enough to compensate for these declines.
After her cancellation, Ms. Oil plans to migrate her actions to the NASD OTC Securities Exchange, a platform that facilitates the trade in unlisted securities. This will allow existing investors to continue to negotiate their actions while allowing the company to focus on long -term growth without regulatory charges on a public quotation.
Affairs and capital reduction for shareholders
As part of the cancellation process, Ms. Oil will initiate a program to buy stock and reduction of social capital, aimed at providing an opportunity to go out for dissident shareholders who do not wish to remain invested after cancellation. The company has canceled the funds necessary to compensate for these shareholders, the complaint period taking place from April 4 to July 4, 2025. Shareholders who do not opt for the buyout in this window will automatically have migrated their shares to the NASD OTC Stock Exchange.
Ms. Oil assured investors that the entire radiation process will comply with all the necessary regulatory approvals of the Securities and Exchange Commission (SEC) and the NGX. The company also stressed that this strategic decision will allow it to rationalize operations and focus on long -term growth strategies without the restrictions associated with the public constitution.
Part of a broader market outings
The release of Ms. Oil follows a growing trend in companies that have been relaunched from the NGX in recent years, citing similar challenges such as high costs of compliance, low liquidity of negotiation and macroeconomic instability. Notable outings include Glaxosmithkline (GSK) Consumer Nigeria PLC, which has struck in 2023 due to strategic commercial examinations and operational constraints; 11 PLC (formerly Mobil Oil Nigeria), which left the NGX in 2021 and went to the exchange of securities of the NASD; and Union Diagnostics, which also struck off, opting for private property.
Before her announcement, Ms. Oil had a market capitalization of around 59 billion Nairas, contributing to the overall size of the NGX market of 63 Billions of Nairas. His departure still highlights wider concerns concerning the NGX’s ability to keep lists, in particular medium -sized and multinational companies confronted with operational challenges in the Nigeria economic landscape.
Analysts have warned that the constant flow of business outings reflect deeper structural problems on the Nigerian capital market, which may require urgent reforms to improve investors’ confidence and keep lists.
The radiation comes in the middle of the market gains
The decision of Ms. Oil to coincide with a rally on the Nigerian stock market, the All-Share index (ASI) recording an increase of 244.24 points on March 28, 2025, closing at 105,670.36 points. This represents an increase of 0.23% compared to the figure of the day before 105,426.12 points. The market capitalization also increased to 66.2 Billions of Nairas, against 66.1 Billions of Nairas the day before, reflecting an increased activity of investors. The daily negotiation volume increased to 544 million shares, compared to 423.6 million shares recorded the day before, reporting a renewal of investors’ confidence.
Among the largest winners were UPDC and Abbeybds, each for 10%, while Intennegins and Afriprud led the graphic of the losers with 10% decreases.
UPDC saw its price at 2.97 N, while Abbeybds closed its doors to N4.73. NNFM also recorded a strong gain of 9.96%, which ends the day at N87.75. Mbenefit followed with an increase of 9.38%, reaching N1,05, while Royalex increased by 8.25% to close to N1.05.
On the loser side, Innegins fell to N1,62 and Afriprud fell to N13.05. Cadbury recorded a loss of 9.42%, closing to 23.55 N, while UPDCreit decreased by 9.09% to N5.50. RTBRISCOE also had a drop of 7.69%, ending at N2.40.
The volume of exchanges remained high, Mbenefit leading to 73.9 million shares, followed by Cutix with 72 million shares. GTCO recorded 67.8 million shares, while Fidelitybk saw 47.5 million shares exchanged. Univinsure also recorded an important activity, with 33 million actions negotiated.
In terms of value, Aradel directed the market with transactions worth 6.4 billion Nairas, followed by GTCO with 4.5 billion Nairas. Nestlé and Geregu facilitated transactions worth 2.3 billion nairas and 2.2 billion Nairas, respectively, while ZenithBank recorded 1.1 billion nairas in transactions.
Market prospects: ASI pushes 106,000 points
The Nigerian All-Share (ASI) index tries to cross the 106,000 mark, because the feeling of the market shows signs of renewed optimism after weeks of correction. Analysts note that this market rebound could offer investors opportunities to enter more favorable price levels.
However, despite the wider market gains, Ms. Oil’s cancellation highlights the persistent concerns about the capacity of the NGX to keep businesses. With continuous economic challenges such as foreign exchange volatility, inflation and high operational costs, companies can continue to rethink the advantages of maintaining public lists.
Although Ms. Oil has assured shareholders that he would provide updates throughout the cancellation process, the business output model suggests deeper structural problems that may require urgent reforms to restore the confidence of investors in the Nigerian capital market.
