The Nigerian Exchange Limited (NGX) has suspended trading for eight companies due to their failure to submit their audited 2023 financial statements as required. The suspension took effect on July 8, 2024, and will remain in place until the companies comply with the filing requirements.
The affected companies include Mutual Benefits Assurance, Lasaco Assurance, Unity Bank, C & I Leasing, Secure Electronic Technology, Guinea Insurance, NPF Microfinance Bank, and Regency Alliance Insurance. This move follows the NGX’s regulations that mandate listed firms to submit their audited annual reports by a specified deadline.
In June 2024, the NGX imposed fines totaling N76.8 million on nine companies for similar non-compliance. Among the currently suspended firms, Unity Bank is notable for being supported by the Asset Management Corporation of Nigeria (AMCON), which holds over a third of its issued shares. Despite this support, Unity Bank has not yet released its 2023 earnings report.
The suspension is in accordance with NGX Rule 3.1, which deals with the filing of accounts and managing default filings. Godstime Iwenekhai, head of the NGX’s issuer regulation department, signed the document notifying the public of the suspension. According to the rule, if a company fails to file the required accounts by the end of the Cure Period—a 90-day period starting from the beginning of the year—the NGX will issue a ‘Second Filing Deficiency Notification’ and subsequently suspend trading in the company’s shares.
The NGX has also informed the Securities and Exchange Commission (SEC) and the broader market of the suspension within 24 hours, as stipulated by the rules.
Stockbroker Tunde Akintoye commented on the NGX’s action, stating that the suspension is essential to maintain market integrity. “This action highlights the importance of transparency and accountability in the financial sector,” Akintoye said. “By enforcing strict adherence to reporting deadlines, the NGX ensures that investors have access to timely and accurate information, which is crucial for making informed decisions.”
In related news, the NGX and SEC recently launched a digital platform for purchasing shares, aimed at making transactions more accessible and efficient for investors. Additionally, the NGX introduced a shortcode (USSD) to facilitate the ownership of shares in quoted companies, further advancing its efforts to modernize and expand the market.
