Nigeria: NGX Suspends Trading of Eight Companies for Financial Reporting Defaults

NGX Suspends Trading of Eight Companies for Financial Reporting Defaults
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NGX Regulation, the regulatory arm of the NGX Group, has announced the suspension of trading in the shares of eight companies due to their failure to file relevant financial accounts for 2023.

In a market bulletin released on Monday, Godstime Iwenekhai, Head of the Issuer Regulation Department, stated that the suspension was effective immediately.

The companies affected by this suspension are Unity Bank, C&I Leasing Plc, Guinea Insurance, Lasaco Assurance, Mutual Benefits Assurance, NPF Microfinance Bank, Regency Alliance Insurance, and Secure Electronic Technology Plc.

“Trading in the shares of the eight companies listed below has been suspended from the facilities of Nigerian Exchange Limited (NGX or The Exchange) effective today, Monday, 8 July 2024, for not filing their Audited Financial Statements for the year ended 31 December 2023,” said Iwenekhai.

According to post-listing requirements, companies on the Exchange must submit their accounts and other necessary documents within a specified timeframe.

NGX Regulation acted in accordance with Rule 3.1 concerning the Filing of Accounts and Treatment of Default Filing (Default Filing Rules). The rule states that if a company fails to file the relevant accounts by the end of the Cure Period, the Exchange will:

  • Send a Second Filing Deficiency Notification to the issuer within two business days after the end of the Cure Period,
  • Suspend trading in the issuer’s securities, and
  • Notify the Securities and Exchange Commission and the Market within 24 hours of the suspension.

The suspension on trading in the shares of the affected companies will be lifted once they comply with the filing requirements.

Delays in filing the 2023 annual reports by insurance companies have been attributed to the adoption of IFRS 17 standards. IFRS 17 requires companies to recognize profits as they deliver insurance services rather than when they receive premiums and to provide information about the expected future recognition of insurance contract profits.

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