NGX imposes N172.2 million fine on First Bank, Sterling Bank, VFD Group, Oando, 13 others

The Nigerian Exchange Limited (NGX) has imposed fines totaling N172.2m on eighteen publicly listed companies for failing to submit their audited financial statements within the required regulatory timeframe.

This measure, findings revealed is aimed at enforcing compliance with the NGX reporting standards, particularly for financial disclosures due at the end of 2023 and 2024.

The sanctioned companies span a variety of sectors and include prominent names such as African Alliance Insurance Plc, FBN Holdings Plc, VFD Group Plc, Sterling Financial Holdings Company Plc, UPDC Plc, and Oando Plc.

Additional companies affected by the penalties include ABC Transport Plc, Presco Plc, eTranzact International Plc, NCR (Nigeria) Plc, Lasaco Assurance Plc, Regency Alliance Insurance Plc, Guinea Insurance Plc, C & I Leasing Plc, Universal Insurance Plc, Secure Electronic Technology Plc, Conoil Plc, and Caverton Offshore Group Plc.

In its latest X-Compliance report, the NGX explained that this enforcement action is part of a broader initiative to uphold market integrity and protect investors.

The Exchange emphasized that compliance-related information about listed companies is critical for maintaining transparency and stability in the market.

“Companies listed on the Exchange are required to adhere to high disclosure standards as outlined in Appendix III of the Listing Rules.

“Timely release of periodic financial information and ongoing material events is essential to the Exchange’s function in ensuring an orderly market,” the report stated.

Founder of the Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu expressed that companies must prioritize compliance to ensure shareholders have access to crucial financial health information.

“We have long advocated for transparency and timely disclosures at general meetings to help investors gauge the status of these companies for sound investment decisions,” he noted.

The Progressive Shareholders Association President, Mr. Boniface Okezie, agreed, stating that penalizing companies for non-compliance reinforces the importance of corporate accountability.

Okezie further suggested that it would be preferable to have fewer, rule-abiding companies in the market than numerous entities unwilling to meet regulatory requirements.

He believes that the NGX’s actions will drive better adherence to post-listing obligations, potentially improving the overall valuation accuracy of listed securities.