Economy
NSE May Sanction Union Bank, 13 Others Over Free Float Deficiencies
By Dipo Olowookere
The Nigerian Stock Exchange (NSE) may soon wield its big stock on 14 companies over their inability to meet up with the minimum post-listing requirement with regards to free float of shares to the investing public.
The affected firms are AG Leventis Plc, African Paints Plc, Capital Hotel Plc, Caverton Offshore Support Group Plc, Champion Breweries Plc, Chellarams Plc, Ekocorp Plc, E-Tranzact International Plc, Great Nigeria Insurance Plc.
Others are Infinity Trust Mortgage Plc, Interlinked Technology Plc, The Tourist Company of Nigeria Plc, Transcorp Hotels Plc and Union Bank of Nigeria Plc.
The free float rule stipulates the minimum number of shares required by promoters of public companies listed on the NSE to be released to the investing public for trading at the stock market.
These firms are required to maintain a minimum free float of their shares for the set standards under which they are listed in order to ensure that there is an orderly and liquid market for their securities.
The free float requirement for companies on the Alternative Securities Market (ASEM Board) is 15 percent of market capitalization, Main Board is 20 percent of market capitalization, same as companies on the Premium Board (20 percent) of market capitalization or above N40 billion on the date the market regulator receives the Issuer’s application to list.
An information posted on the NSE website stated, “The following companies mentioned that have free float deficiencies have applied for waivers from the Quotations Committee of Management specifically provided compliance plans with tentative timelines to support their requests.
“The Quotations Committee of Management considered and approved an extended timeframe for the companies to regain compliance with the listing requirement. The companies are however required to also provide quarterly disclosure reports to the Exchange detailing their level of implementation of the compliance plans.”
According to checks by Financial Vanguard, the above 14 companies are still unable to meet the compliance date as approved by the NSE.
Findings revealed that AG Leventis has free float of 11.64 percent and deficiency of 8.36 percent or 1.901 billion shares with compliance due date of July 2017; African Paints 9.82 percent of free float and deficient of 10.18 percent or 381.969 million shares with compliance due date of December 31, 2017; Capital Hotel Plc 2.62 percent of free float and deficiency of 17.38 percent or 10.274 billon shares with compliance due date of October 31, 2017; and Caverton Offshore 17.40 percent and deficiency of 2.60 percent or 500.651million shares with compliance due date October 31, 2017.
Others are Champion Breweries Plc 17.30 percent of free float and deficiency of 2.70 percent or 1.222 billion shares, though undergoing restructuring; Chellerams Plc 14.87 percent of free float and deficiency of 249.402 million shares with compliance due date of February 28, 2018; Ekocorp Plc 11.84 percent of free float and deficiency of 8.16 percent or 343.630 million shares with compliance due date of October 31, 2017; and E-Tranzact International Plc 5.65 percent free float and deficiency of 14.35 percent or 10.667 billion shares with compliance due date of October 31, 2017.
Also Great Nigeria Insurance at 16 percent of free float has deficiency of 4 percent or 956.871 million shares with compliance due date October 31, 2017; Infinity Trust Mortgage 3.50 percent of free float and deficiency of 16.50 percent or23.831 billion shares with compliance due date of May 31, 2018; Interlinked Technology 14.50 percent of free float and deficiency of 5.50 percent or 89.782 million shares; The Tourist Company 3.58 percent of free float and deficiency of 16.42 percent or 10.303 billion shares, while delisting in progress; Transcorp Hotel 6 percent of free float and deficiency of 14 percent or 17.734 billion shares with compliance due date of December 12, 2017 and Union Bank Nigeria Plc 14.94 percent of free float and deficiency of 5.16 percent or 9.863 billion shares with compliance due date of June 30, 2017.
Meanwhile, further analysis showed that AG Leventis has applied for an extension of compliance date; Capital Oil is under regulatory watchlist; Champion Breweries has obtained NSE’s Quotation Committee of Management approval and is currently restructuring; Great Nigeria has concluded the first leg of the transaction for free float and Management of NSE has engaged the company on the next stage; The Tourist Company of Nigeria is under regulatory watchlist, while Union Bank has applied for an extension.
While reacting to the NSE’s position a source close to Transcorp said: “The company is aware of the free float deficiency and Management is working closely with the Stock Exchange to meet the free float requirement.
“We could have done this earlier before now but the market has not been favourable since last year but we hope that once the market is favourable, we will float more shares to the general public.”
Commenting on this, Managing Director/CEO, APT Securities & Funds Limited, Mallam Kasimu Kurfi, stated: “The situation depend on the market demand as long there is no demand it will take time to meet up the minimum flotation of 20 percent of the issued shares.
“You can see that despite effort of Dangote, still Dangote Cement Plc did not meet up with the minimum free float of share over years after listing on the Exchange. The better way is to give more time to the defaulters otherwise they may delist which is not good for the market.”
Also commenting the Executive Vice Chairman, High Cap Securities, Mr David Adonri said: “The Inability of the companies to comply with the free float is worrisome. It is to ensure that stocks ownership in public companies is not concentrated in few hands and to prevent price manipulation and dearth of liquidity. The earlier the defaulters comply, the better it is for the integrity of the capital market.
In his own remark, Managing Director/CEO, Sofunix Investment and Communications Limited and a Chartered Stock Broker, Mr Sola Oni said: “The NSE requires quoted companies to have a minimum 20 percent of its paid up share capital as free float or at least the value of its free float should be equal to N40 billion on the day the company is admitted to the Daily Official List of the Exchange.
The philosophy of free float is to hedge against high level of lock-in shares held by the company’s promoters. However, companies that fail to comply with the requirement have breached part of The Exchange’s Post Listing Requirements which they signed to uphold.
It portrays them as not transparent and reduces effective public participation in the companies’ ownership. This can attract sanctions from the Exchange.
“On the part of shareholders, a breach of free float rule obscures the real capitalization of such companies. It makes it difficult for shareholders to know the actual total value of a company for the purpose of investment decision. This particularly affects stockbrokers and other investment advisers in their advisory services on such companies.”
Reacting, the spokesperson for Independent Shareholders Association of Nigeria (ISAN), Mr Moses Igbrude said: “When market regulators failed or choose to bend the laws or their regulations to favour some players this scenario will be the case.
“Before now, core investors were not allowed to own more than 51 percent or 60 percent. This will allow for free float of shares. In the name of attracting certain companies to list on Stock Exchange the regulation was removed and the implication is what we are seeing in the market.
“The regulators also forgot that the strategic investors don’t trade their shares and it is the free float of shares in market that make prices.
“The removal or non-compliance to rule is one of the reasons why most delisted companies opted for that option, it made it a lot easy for a company with the intention to delist to gradually increase its percentage holdings over time by using their cronies to mop the shares.
“Share price of such stocks can easily be manipulated and it doesn’t reflect true market price, the likes of AG Leventis, Dangote group of listed companies falls in this category.
“I strongly advise the NSE and SEC to have the boldness and confidence to address this issue if they really want to have a global or international market as they want us to believe.
“A free float of companies’ shares is one major criteria to measure transparent and credibility of Stock Exchange.”
Another shareholder, activist, Mr Gbadebo Olatokunbo said: “The initial rule was that core investor will not hold more than 60 per cent of the issued capital. May be the NSE later knew that the policy wasn’t practicable and then relaxed, because I don’t know why after being quoted, you still want to enforce such policy.
“But for companies holding so much like 50/70 percent and above, my take is yes. Yes, because if you don’t, they (companies) will wake up from the wrong side of the bed one day and decide to buy-back from local-investors. It had happened in many companies e.g. Nigerian Bottling Company, NBC, 7up, Chellerams etc.
“I think companies should, if not must not hold more than 20/30 percent of their stocks after few years of quotation on NSE, our rules/regulations needs periodical reviews on citizen participation.”
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
