The Nigerian Exchange Limited (NGX) has fined nine quoted companies N76.8 million for failure to file their audited financial statements after the regulatory due date.
The 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.
They also include, 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.
An investigation by Nairametrics showed that the companies were sanctioned for their inability to meet the regulatory requirements for the year-end 2022 and 2023 financials.
Analysts agreed that the sanction would serve as deterrents to others who are in the habit of opting for fines.
Others however say the fines are not strongest enough to deterr recalcitrant companies, hence their call for increase in the fines.
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The Exchange in its X-Compliance report explained that the initiative was designed to maintain market integrity and protect the investors by providing compliance-related information on all listed companies.
The report thus stated that “Companies that are listed on the Exchange are required to adhere to high disclosure standards which are prescribed in Appendix 111 of the Listing Rules.
“Financial information which is periodic disclosure and on-going material events disclosure should be released to The Exchange promptly to enable it efficiently perform its function of maintaining an orderly market”.