The Nigerian Exchange (NGX) was built on the promise of democratizing wealth, enabling ordinary investors to participate in the growth of corporate Nigeria. But what happens when a company listed on the exchange behaves more like a private entity, opaque, illiquid, and tightly held? companies listed with extremely low public float and concentrated ownership, creating a façade of public participation while operating like private empires.
The Case of BUA Foods: A Private Empire in Public Clothing BUA Foods, while technically a public company listed on the NGX, functions more like a private entity. With 95.27% of its shares held by one man, Abdul Samad Rabiu, its public float is a meager 4.73%. This extreme concentration of ownership starkly reveals the contradiction at the heart of the issue.
For instance, the company’s 2024 dividend payout. Of the total ₦234 billion dividend, an overwhelming 92.64%, or approximately ₦216.75 billion went directly to Rabiu. This left the entire pool of public shareholders with a combined take of just over ₦11 billion. This lopsided distribution underscores a fundamental question: Can a company truly be considered public when a single individual controls nearly all its economic and governance outcomes?
The concentration of ownership also creates a profound lack of liquidity. Despite a market capitalization of over ₦10.6 trillion, BUA Foods’ average daily trading volume is an average of 265,000 shares, a drop in the ocean that stifles price discovery. Between August and September 2025, the share price fluctuated by just ₦2, moving from ₦588 to ₦590. With so few shares trading, the market cannot accurately reflect investor sentiment or the company’s performance, turning the stock into a static asset rather than a dynamic investment.
The BUA Foods example is not an anomaly. There is a trend of publicly listed, privately controlled companies spread across the NGX. For instance, BUA Cement, also controlled by Abdul Samad Rabiu, has a public float of just 6.5%. Similarly, Champion Breweries’ float is limited to around 15%, with its majority shareholder being Heineken via Raysun Nigeria.
Other companies also exhibit similar characteristics. Notore Chemical has a public float of only about 12%, and Union Bank’s float has shrunk to roughly 8% following its acquisition by Titan Trust Bank. Even smaller firms like Arbico Plc, which has a public float of just under 20% and is dominated by private family holdings, and CAPHOTEL, where Ikeja Hotels Plc controls over 95% of the shares, underscore the prevalence of this issue. Many of these companies have been flagged by the NGX for their low liquidity, with minimal trading volumes and low investor interest.
These companies are technically listed but functionally private, with ownership so concentrated that public investors have little influence, access, or liquidity.
The Strategic Calculus: Why List? Despite their private behavior, these companies pursue a public listing for compelling strategic reasons:
Prestige and Credibility: A public listing enhances a company’s brand image, projecting an aura of transparency and good governance to a wider audience, including customers and international partners.
Access to Debt Markets: Listed firms often gain better terms on loans and can secure lower interest rates from banks and other financial institutions.
Regulatory Arbitrage: By meeting the minimum technical requirements for listing without committing to a meaningful public float, these companies can enjoy the benefits of public status while avoiding the scrutiny and accountability that come with true public ownership.
The NGX must evolve from a rigid, compliance-based model to a substance-over-form framework. Simply ticking boxes is no longer sufficient; the market must reflect a genuine commitment to transparency, liquidity, and shared prosperity.
To address this, the NGX should consider several reforms:
Raise Minimum Float Thresholds: A minimum public float of 10-15% should be the bare minimum for companies seeking a listing. This would force a greater distribution of shares and encourage broader public participation.
Introduce Liquidity Metrics: Beyond just a low float, the NGX should mandate that companies meet minimum trading volume standards. Companies that consistently fail to meet these metrics could be moved to a separate board with stricter rules or face delisting.
Mandate Quarterly Float Disclosures: Investors deserve real-time transparency. Requiring companies to disclose their public float and ownership structure on a quarterly basis would provide a clearer picture of ownership dynamics.
Tiered Listing Categories: Creating separate boards for low-float companies with stricter governance and disclosure requirements would protect investors and differentiate truly public companies from their privately controlled peers.
Until the NGX addresses this critical issue, the Nigerian capital market risks becoming a stage for elite theatrics, rather than a platform for inclusive growth.