Shock as NGX suspends 8 listed companies from trading

The Nigerian Exchange Limited (NGX) has suspended trading for eight companies because they failed to comply with a regulation mandating listed firms to submit audited annual reports by a specified deadline.

According to the document, this suspension will persist until these companies provide their pending 2023 audited financial statements to the exchange.

NGX suspends LASACO, Unity Bank, 6 listed companies from trading, gives reasons
Source: UGC

The companies facing sanctions include Mutual Benefits Assurance, Lasaco Assurance, Unity Bank, C & I Leasing, Secure Electronic Technology, Guinea Insurance, NPF Microfinance Bank, and Regency Alliance Insurance.

Recall that in June 2024, the NGX fined nine quoted firms N76.8 million for failing to file their audited financial statements by the due date.

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Unity Bank, supported by the Asset Management Corporation of Nigeria (AMCON), is the sole listed bank that has not yet released its 2023 earnings report.

AMCON, established to purchase non-performing loans from banks and subsequently recover them, is the principal shareholder of Unity Bank, owning over one-third of its issued shares.

Premium Times reported that the document was signed by Godstime Iwenekhai, who heads its issuer regulation department of the NGX.

Iwenekhai informed the investing public that the suspension is in accordance with Rule 3.1, which pertains to the filing of accounts and the handling of default filings.

He noted that the suspension was effective Monday, 8 July 2024.

The statement partly read:

“If an Issuer fails to file the relevant accounts by the expiration of the Cure Period1, the exchange will (a) send to the issuer a 'Second Filing Deficiency Notification' within two (2) business days after the end of the Cure Period.”

A cure period typically lasts 90 calendar days, starting from the beginning of the year and extending to the end of the first quarter. This period includes weekdays, weekends, and public holidays.

Additionally, the document stated that the exchange is obligated to inform the capital market regulator, the Securities and Exchange Commission (SEC), and the market within twenty-four (24) hours of the suspension.

Source: Legit.ng