The Nigerian stock exchange has experienced a notable downturn this year, with eight firms departing the Nigerian Exchange (NGX) in 2025 alone. This exodus has slashed approximately ₦330.7 billion ($224 million) from the market’s overall capitalization. Although this represents a modest 0.35% of the total market value, these removals underscore significant systemic hurdles faced by tech startups considering public listings, including stringent post-listing compliance and steep regulatory expenses.
Among the companies that have been delisted are Notore Chemical Industries, MRS Oil, Med-View Airline, and Smart Products Nigeria. Notore’s departure alone accounted for a staggering ₦252 billion ($172 million) of the market value lost.
This pattern has been ongoing for several years. Since 2021, over 30 companies have exited the NGX, collectively erasing more than ₦660 billion ($450 million) in market capitalization. In 2024, six companies delisted, including GlaxoSmithKline, while Union Bank‘s 2023 exit alone resulted in a ₦193 billion ($132 million) reduction. These figures highlight a persistent weakening of market liquidity, even as new listings remain infrequent.
Digging deeper: Some of the 2025 delistings were voluntary, but others were enforced by the NGX. Smaller enterprises like Tourist Company of Nigeria and Union Homes also exited, illustrating the harsh regulatory and operational environment. Maintaining a listing is challenging, even for well-established companies, and failure to meet obligations can swiftly erode liquidity.
For tech startups, these delistings signal a tightening liquidity landscape. Take Flutterwave, the Nigerian fintech unicorn, which the Exchange is actively encouraging to list. Such companies face a market environment that is not only demanding and expensive but also unforgiving. Beyond capital raising, listing requires sustained governance, operational excellence, and credibility to endure.
Given the current contraction in liquidity, securing a spot on the NGX is increasingly a matter of survival as much as it is a growth strategy.