Alex Omenye
The Nigerian Exchange Limited has imposed fines totaling N76.8 million on nine listed companies for failing to submit their audited financial statements by the regulatory deadline.
It was revealed that these companies were penalized for not meeting the regulatory requirements for their year-end 2022 and 2023 financials.
The sanctioned companies include African Alliance Insurance Plc, VFD Group Plc, FBN Holdings Plc, Sterling Financial Holdings Company Plc, UPDC Plc, ABC Transport Plc, Presco Plc, eTranzact International Plc, and NCR (Nigeria) Plc.
African Alliance Insurance Plc faced the highest fine of N48.6 million for not filing its 2022 annual financial statement on time.
Other companies that failed to submit their 2023 financials and their respective fines are:
– VFD Group Plc: N5.6 million
– FBN Holdings Plc: N5.4 million
– Sterling Financial Holdings Company Plc: N6 million
– UPDC Plc: N3.9 million
– ABC Transport Plc: N3.2 million
– Presco Plc: N3.2 million
– eTranzact International Plc: N700,000
– NCR (Nigeria) Plc: N200,000
Market operators have welcomed the NGX’s sanctions, stating that they will lead to more accurate pricing of securities.
The fines are expected to compel more listed entities to provide timely financial information to the market.
Mike Eze, Managing Director of Crane Securities Limited, remarked that the NGX’s actions would boost investor confidence. “This sends a clear message about the importance of timely financial reporting, enhancing transparency and trust in the market,” Eze said.
These measures underscore the NGX’s commitment to maintaining market integrity and ensuring that investors have access to essential financial information.
Informed investment decisions require companies to adhere to robust corporate governance, according to Sir Sunny Nwosu, founder of the Independent Shareholders Association of Nigeria. Nwosu emphasized that companies must meet necessary requirements to help shareholders understand their financial health.
“It is not a new issue, and it does not surprise us. We have consistently communicated with the exchange and raised this matter at annual general meetings. Knowing the status of these companies is essential for making investment decisions,” Nwosu stated.
Boniface Okezie, President of the Progressive Shareholders Association, echoed these sentiments, highlighting the importance of having fewer companies that comply with regulations over a larger number that do not meet post-listing requirements.
Okezie supported penalizing companies for non-compliance with NGX listing rules, noting that it leads to more accurate pricing of securities. He added that this would compel more entities to provide timely market information, enhancing investor confidence in NGX’s regulatory capabilities.
The Nigerian Exchange, in its X-Compliance report, outlined that this initiative aims to maintain market integrity and protect investors by providing compliance-related information on all listed companies.
The report stated, “Companies listed on the Exchange are required to adhere to high disclosure standards as prescribed in Appendix III of the Listing Rules. Financial information, including periodic disclosures and ongoing material events, should be released promptly to enable the Exchange to maintain an orderly market.”
This emphasis on corporate governance and compliance is seen as crucial for fostering a transparent and trustworthy investment environment.
