The Nigerian Exchange Limited (NGX) has fined nine listed companies a total of N76.8 million for failing to submit their audited financial statements on time for the years 2022 and 2023. This action is part of the X-Compliance Report, an NGX Regulation Limited (NGX RegCo) initiative aimed at maintaining market integrity and protecting investors through transparency and compliance.
The fined 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. Among these, African Alliance Insurance Plc received the highest fine of N48.6 million for not filing its 2022 financial statement. Other companies were fined for failing to submit their 2023 financials, with penalties ranging from N200,000 to N6 million.
Shareholders, like Pastor Adegoke Samson, have expressed concerns that these fines may adversely impact their returns and suggested that NGX should issue warnings before imposing fines. They argue that the fines could drive companies away from the market, potentially harming NGX’s existence, and recommend a more balanced approach to enforcement.
Source: Daily Trust