Nigeria Stock Exchange suspends firms for failing to file corporate accounts

NIGERIA – The Nigerian Stock Exchange (NSE) which is the authority responsible for regulating capital markets in Nigeria, has suspended six quoted firms for their inability to file corporate accounts as required.

The suspended companies include FTN Cocoa Processors Plc, Medview Airline Plc, Niger Insurance Plc, R.T. Briscoe (Nigeria) Plc, Union Dicon Salt Plc, and Capital Oil Plc.

In a statement, the NSE revealed that it had suspended trading on the shares of the companies with effect from September 2020.

Regulatory rules at the Nigerian bourse require all quoted companies to submit their annual audited report and financial statement not later than 90 days after the end of the financial year.

In Nigeria, this deadline for submission of audited reports and financial statements is usually the 30th of Mach as most of the quoted companies use the Gregorian calendar year ending December 31 as their business year.

This year however, the NSE extended this deadline for a further 60 days due to the disruptions caused by the COVID-19 pandemic.

The NSE explained that it reported to suspending that the companies after the expiration of the “grace” period and many notifications demanding the submission of the financial statements were not responded to.

NSE further noted that the suspension of trading in the shares of the six listed companies will only be lifted upon the submission of the relevant accounts.

In July 2020 NSE warned investors to be wary when dealing with shares of 13 companies after they failed to meet regulatory deadlines for the submission of their financial statements without any explanation.

The 13 companies included the six named above and an additional 7 others including Aso Savings and Loans Plc, Deap Capital Management & Trust Plc, and DN Tyre & Rubber Plc.

Other included: Goldlink Insurance Plc, International Energy Insurance Plc, Resort Savings & Loans Plc, Staco Insurance Plc, Standard Alliance Insurance Plc, UNIC Diversified Holdings Plc, and Union Homes Savings and Loans Plc.

The Securities and Exchange Commission has said it would strictly enforce all rules that guide the operations of the capital market so as to restore investor confidence.

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