The Nigerian Exchange Limited (NGX) has intensified its crackdown on non-compliant listed companies, placing Union Dicon Salt Plc and four other firms on its Delisting Watch List (DWL) while advancing three others into the final Delisting In Process (DIP) stage.
This action, detailed in the Exchange’s updated X-Compliance Report released on Wednesday, March 4, 2026, underscores NGX’s determination to uphold transparency, corporate governance, and orderly market operations in Nigeria’s capital market.
The five companies now under Delisting Watch List scrutiny are Union Dicon Salt Plc, Deep Capital Management & Trust Plc, Multi-Trex Integrated Foods Plc, STACO Insurance Plc, and Fortis Global Insurance Plc.
These firms appear under Schedule 8 of the report, signaling they face heightened regulatory monitoring for failing to meet key post-listing obligations.
Union Dicon Salt Plc, a long-established salt producer, has drawn particular attention amid its public admission of a major governance hurdle. In a separate notification filed with the NGX on March 4, 2026 (dated March 3), the company disclosed that it has been unable to establish contact with its majority shareholder, Aims Limited—a Brazilian-linked entity holding 64 million shares, or 40% of the issued capital—for an extended period despite repeated efforts.
This communication breakdown, reportedly stretching back years (with some reports suggesting since around 2004), has hampered revival efforts and contributed to prolonged operational dormancy.
Union Dicon has emphasized that it received a stay of action from the NGX, halting the delisting process temporarily and granting management a two-year window to address compliance issues and restore operations.
Recent steps include recommissioning salt and pepper production facilities with NAFDAC approvals and resuming packaging activities for its Dicon Salt and Dicon Hot Pepper brands. The company insists it remains committed to full regulatory compliance and operational revival, though the absent majority shareholder continues to pose a significant obstacle.
Other companies on the watch list face varied compliance challenges:
- Deep Capital Management & Trust Plc was flagged primarily for delays or failures in filing mandatory quarterly compliance reports.
- Multi-Trex Integrated Foods Plc and Union Dicon Salt Plc were placed under a standard two-year monitoring period following regulatory committee approvals, providing time to rectify lapses.
- STACO Insurance Plc and Fortis Global Insurance Plc received an extended three-year monitoring window, approved by a regulatory committee on February 14, 2025.
Meanwhile, three firms have progressed to the more advanced Delisting In Process phase after exceeding two years on the watch list without sufficient remediation:
- Greif Nigeria Plc and DN Tyre & Rubber Plc saw delisting proceedings approved by the NGX Regulation Limited (RegCo) board meetings on June 28 and October 10, 2024, respectively.
- Ekocorp Plc received similar approval on March 21, 2025, though RegCo has paused engagement due to ongoing litigation involving the company’s shares.
The broader X-Compliance Report monitors a total of 15 companies across categories, including Delisting In Process, Delisting Watch List, and Restructuring. Six additional firms, FTN Cocoa Processors Plc, Thomas Wyatt Nigeria Plc, Austin Laz and Company Plc, International Energy Insurance Plc, Pharma-Deko Plc, and Premier Paints Plc, are currently under supervised restructuring.
Placement on the DWL or DIP does not immediately suspend trading in a company’s shares but serves as a strong regulatory warning. It alerts investors to elevated risks stemming from issues such as delayed financial statements, corporate governance shortfalls, disclosure failures, or other breaches of NGX listing rules. Progression to delisting typically occurs when deficiencies remain unresolved within prescribed monitoring periods.
This latest purge reflects NGX’s broader strategy to cleanse the market of persistently underperforming or non-transparent entities, aiming to boost investor confidence, enhance market integrity, and ensure only compliant companies benefit from public listing privileges.
Market observers note that while such actions may cause short-term volatility for affected stocks, they contribute to long-term market health by weeding out chronic underperformers. Investors are advised to exercise caution with securities in these categories and monitor ongoing company disclosures closely.
WHAT YOU SHOULD KNOW
The Nigerian Exchange (NGX) is decisively tightening compliance enforcement: Union Dicon Salt Plc and four other listed companies have been placed on the Delisting Watch List, while Greif Nigeria, DN Tyre & Rubber, and Ekocorp have advanced to the final Delisting In Process stage.
