Banks, 18 others, fined N125m for late filings

For failing to submit their 2022 audited financial statements and quarterly reports for the first half of 2023 as required by Nigerian Exchange, at least eight banks and 18 other listed corporations have been penalised N125m.

Unity Bank, FBN Holdings, Access Holdings, Fidelity Bank, Jaiz Bank, Wema Bank, Guaranty Trust Holdings Plc, and Ecobank Transnational Incorporated were among the affected financial institutions.

The sanctions also had an impact on John Holt, PZ Cussons, Notore Chemical, Glaxo SmithKline Consumer Nigeria, Industrial Medical and Gases Nigeria, and Juli Plc.

The NGX’s post-listing regulations provide that quoted businesses must report their audited results 90 calendar days, or three months, following the end of the quarter. In accordance with the regulations, quoted businesses must additionally file interim reports no later than 30 calendar days following the conclusion of the applicable period.

According to the most recent X-Compliance Report published by the NGX’s regulatory arm, FBN Holdings was penalized for submitting its 2022 financial statements and its 2023 first quarter report late. The lender made payments totaling N3.3m for the second offense and N6.3m for the first.

Unity Bank paid N6.4m for missing its deadline to submit its 2022 results, and another N3.4m for missing it to submit its interim reports for the first quarter of 2023.

According to the report, Fidelity Bank, GTCO, and Wema Bank each paid fines of N2.7, N1.4, and N1.9 million.

Jaiz Bank, Ecobank, and John Holt each paid N600,000, N3.2m, and N3.2m in fines, respectively, while Access Holdings paid N2 million.

PZ Cussons received an N4.8 million charge from the NGX, Notore Chemical paid N500,000, and GSK—which just announced the closing of its business in Nigeria—also paid a N1.3 million fine for failing to submit its 2022 financial statements on time.

In addition, Industrial Medical and Gases Nigeria paid a punishment of N1.2 million, Juli Plc paid a penalty of N120,000, and NPF Microfinance Bank paid a charge of N1.8 million for their tardiness in reporting its 2022 audited accounts.

The agency also penalized Daar Communications N1.7 million, Champion Breweries N1.6 million, and Abbey Mortgage Bank Plc N1.4 million, respectively.

For the same offense, Regency Alliance Insurance and Thomas Wyatt Nigeria each paid fines of N1.4 million and N4.9 million, respectively.

Additionally penalized by the NGX for violating filing rules were Presco Plc (N24.8m), Ardova (N18.6m), and Universal Insurance Plc (N12.4).

Conoil and Caverton Offshore Support Group each received fines of N7.9 million and N5.7 million, respectively, for failing to submit their results within the allotted time frame.

During this time, Briclinks Africa Plc, a provider of telecommunications services, also paid a fine of N590,000.

David Adonri, vice chairman of Highcap Securities, claimed that the penalties were required to uphold the market’s integrity.

Numerous them concern corporate disclosures. Information drives the stock market. The listed corporations are required to reveal certain information when it is suitable. A corporation can file a request to the exchange asking for more time if it realizes that it might not be able to provide such information.