By Gbenga Adedayo
The worsening political and economic situation exacerbated by political uncertainty is taking a toll on some Nigerian blue chip companies, forcing them to delist at the Nigerian Stock Exchange, either on voluntary or regulatory grounds.
These companies took a bow last year and the preceding years when their shares were not being traded, leading to fall in trading volume which were impacting negatively on shareholders benefit on sustained listing.
Some of the companies affected are Seven-Up Bottling Company Plc, African Paints (Nigeria) Plc, Afrik Pharmaceuticals Plc, Paints & Coatings Manufacturers Nigeria Plc, Great Nigeria Insurance Plc, Beco Petroleum Products Plc MTECH Communications Plc, MTI Plc, UTC Plc, Ashaka Plc, Avon Crown Caps and Containers Plc.
The delisting, it was gathered, would provide these companies the opportunity to carryout internal self-appraisal along with restructuring aimed at repositioning the organizations for improved performance.
Enlistment at the stock exchange is a corporate strategy aimed at growing capital base as well as contributing to the improvement of the overall economy of the country, thus, the Nigerian Stock Exchange has always encouraged companies to be listed.