What Happens to Physical Share Certificates When a Company Is Delisted From the NGX in Nigeria?

When a company’s shares are in certificate form and the company is no longer traded on the Nigerian Exchange Group (NGX), several things could have happened — and your shares may still have value depending on the situation.

Let me break this down clearly:

1. The Company Was Delisted (But Still Exists)

This is the most common case.

A company may be removed from NGX because:

It failed to meet listing requirements

Poor financial performance

Mergers or restructuring

Voluntary delisting

What happens to your shares?

You still own part of the company

But you cannot sell easily on NGX

The shares become illiquid (hard to sell)

You may still:

Receive dividends (if company still pays)

Sell privately (off-market transactions)

2. The Company Was Acquired or Merged

Example:

Company A merges with Company B

Your shares may be converted to another company’s shares

Or you may be paid cash

In this case:

Your share certificate may need verification or conversion

3. The Company Went Bankrupt / Liquidated

This is the worst case.

If the company:

Became insolvent

Was liquidated

Closed completely

Then:

Shares may become worthless

Investors are paid last after creditors

4. Your Shares May Still Be Valid But Need Dematerialization

Since your shares are in certificate form, they are likely not yet in electronic format (CSCS).

In Nigeria, you may need to:

Open a CSCS account

Submit share certificate to registrar

Convert to electronic shares

This process is called: Dematerialization

You can do this through:

A stockbroker

Or the company’s registrar

What You Should Do (Step-by-Step)

Check if the company still exists

Contact the company’s registrar

Ask your stockbroker for guidance

Verify with Securities and Exchange Commission Nigeria (SEC)

Important Question For You

Tell me:

The company name

Whether you inherited the shares or bought them

I’ll tell you exactly:

If they still have value

What you should do next

Many Nigerians still hold old paper share certificates that actually still have value — so don’t assume they are useless yet.