At least nine companies listed on the Nigerian Exchange Limited (NGX) are facing significant financial pressure after their shareholders’ funds turned negative, indicating that their liabilities exceed their assets.
The affected companies are Caverton Offshore Support Group, RT Briscoe, NCR Nigeria, Omatek Ventures, Union Dicon Salt, Nigerian Enamelware, Tripple Gee & Company, SCOA Nigeria, and Premier Paints.
Caverton recorded the largest negative shareholders’ funds at about N15.5 billion, followed by RT Briscoe at N4.86 billion and NCR Nigeria at N4.54 billion.
Omatek Ventures had negative equity of N2.73 billion, Union Dicon Salt N1.35 billion, Nigerian Enamelware N846.39 million, Tripple Gee N649.52 million, SCOA Nigeria N563.76 million, and Premier Paints N225.98 million.
Negative shareholders’ funds mean accumulated losses and other charges have eroded a company’s net asset position, leaving liabilities higher than assets.
The pressure is also reflected in the companies’ Return on Equity (ROE). Caverton recorded an ROE of -143.9 percent, while RT Briscoe posted -69.1 percent, SCOA -40.9 percent, and Tripple Gee -22.2 percent.
NCR Nigeria also recorded negative ROE of -6.6 percent despite posting a net profit of N294.92 million over the last 12 months, highlighting why investors should not rely on ROE alone when assessing financial health.
Nigerian Enamelware’s latest audited accounts showed shareholders’ funds worsening to negative N808.88 million in 2026 from negative N728.77 million in 2025. The company also posted an N80.11 million loss after tax, compared with a N15.48 million profit the previous year.
Market analysts said negative equity is a warning sign but does not automatically mean a company has ceased operations or is immediately insolvent.
They advised investors to examine cash flow, debt levels, profitability, retained earnings, and management’s plans to rebuild the balance sheet.
Analysts also warned that persistent negative equity could restrict companies’ ability to pay dividends and raise fresh financing, while stressing that the broader NGX market rally does not necessarily reflect the financial health of individual companies.
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