NGX Slams N76.8m Fine On Nine Firms

The Nigerian Exchange Limited (NGX) has imposed a N76.8 million fine on nine quoted companies for failure to file their audited financial statements after the regulatory due date.

A report by Nairametrics indicated that the companies were sanctioned for their inability to meet the regulatory requirements for the year-end 2022 and 2023 financials.

This is a requirement of the X-Compliance Report, a transparency initiative of NGX Regulation Limited (NGX RegCo) designed to maintain market integrity and protect investors by providing compliance related information on all listed companies.

Companies that are listed on Nigerian Exchange Limited (NGX) are required to adhere to high disclosure standards which are prescribed in the Rulebook of NGX, 2015 (Issuers’ Rules), and other Rules of NGX, from time to time.

The companies axed by NGX 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.

Further checks showed African Alliance Insurance Plc with N48.6 million fine for inability to file the 2022 annual financial statement when required.

Others that failed to submit their 2023 annual financials include VFD Group Plc, N5.6 million, FBN Holdings Plc N5.4 million, Sterling Financial Holdings Company Plc, N6 million, UPDC Plc, 3.9 million, ABC Transport Plc, N3.2 million, Presco Plc, N3.2 million, eTranzact International Plc, N700,000.00, and NCR (Nigeria) Plc with N200,000.00 fine accounting for a cumulative fine of N76.8 million.

Market operators agreed that the sanction for non-compliance with the rules of listing on NGX is a welcome development, as it will lead to a more appropriate pricing of securities. More quoted entities would be compelled to give information to the market on a timely basis.

Source: Nairametrics