Over 20 Listed Nigerian Companies Penalized for Late Filing of 2022 Audited Financial Statements
According to the X-Compliance Report, a transparency initiative by The Nigerian Exchange Limited (NGX), over 20 listed companies paid a total of N87.32 million in penalties to NGX Regulation Limited (NGX RegCo) for defaulting in filing their audited financial statements for the year 2022. The penalties were imposed as per the Rules for filing of accounts and treatment of default filing. The companies filed their financial statements after the regulatory due date, prompting NGX RegCo to apply sanctions.
Among the defaulters, Presco Plc paid a penalty of N15.4 million after filing its audited full-year result for 2022 on August 1, 2023. Other companies on the list include Ardova, Universal Insurance Plc, Unity Bank Plc, FBN Holdings Plc, Conoil Plc, Caverton Offshore Support Group Plc, Fidelity Bank Plc, Guaranty Trust Holding Company Plc, Regency Alliance Insurance Plc, Abbey Mortgage Bank Plc, Champion Breweries Plc, Daar Communications Plc, NPF Microfinance Bank Plc, Wema Bank Plc, Access Holdings Plc, Jaiz Bank Plc, Juli Plc, Industrial Medical & Gases Nigeria Plc, Glaxo SmithKline Consumer Nigeria Plc, Notore Chemical Industries Plc, PZ Cussons Nigeria Plc, Ecobank Transnational Incorporated, and John Holt Plc.
The X-Compliance Report is designed to ensure market integrity and protect investors by providing compliance-related information on all listed companies. Listed companies on NGX are required to adhere to high disclosure standards, including timely release of financial information and material event disclosures.
Opinion: The penalties imposed on these listed companies for late filing of audited financial statements underscore the importance of transparency and timely reporting in the financial market. Timely disclosure of financial information is essential for maintaining market integrity, providing investors with accurate data, and ensuring fair and efficient trading. It is crucial for companies to adhere to the regulatory guidelines and filing deadlines set by the exchange to promote a healthy investment environment. The penalties serve as a reminder to companies to prioritize financial reporting practices to enhance investor confidence and strengthen the overall credibility of the Nigerian capital market.