Recently, the CFO and company secretary of BUA Cement Plc bought shares worth over ₦201 million. At first glance, insider buying signals confidence in the company. But in Nigeria, when executives snap up large chunks of their own firms, it often shrinks the public float, weakens market liquidity, and can precede delisting leaving ordinary investors with fewer options and the stock market less robust.
Executive share purchases are common in Nigeria. Leaders may buy shares to show they believe the company is undervalued, align their interests with shareholders, or strengthen control. While this can boost investor confidence short-term, excessive insider buying often reduces shares available for regular investors, making trading harder and the stock less attractive.
History shows this pattern can lead to delisting. Recent examples include:
Flour Mills of Nigeria Plc delisted in 2024 after majority shareholder buyouts; minority shareholders exited at negotiated prices.
Ardova Plc taken private in 2023 following insider acquisitions.
Notore Chemical Industries Plc voluntarily delisted in 2025 after core shareholders acquired remaining shares.
MRS Oil Nigeria Plc left the exchange in 2025 after consolidating ownership off-market.
These exits often pay off the acquiring executives, but public investors miss future gains, and the market loses depth. Over the past decade, insider-driven delistings have removed nearly N1 trillion in market value from the Nigerian Exchange. For companies planning to list in the future, this trend sends a cautionary signal: while insider buying can look like confidence, it may ultimately erode trust, liquidity, and market growth.
