NGX slams ₦32.74 million fine on 8 companies for non-compliance

The Nigerian Stock Exchange (NGX) has slammed penalties on Unity bank, Caverton Helicopter and six other quoted companies for failing to file their unaudited financial statements.

The sanctions were as a result of the companies’ failure to to meet the regulatory requirements during the first quarter of 2023.

According to the information which was published on the NGX’s X-Compliance Report under schedule six, the eight defaulting companies, Presco Plc, Ardova Plc , Briclinks Africa Plc, Universal Insurance Plc , Unity Bank Plc, FBN Holdings Plc, Conoil Plc and . Caverton Offshore Support Group Plc were booked under the ‘2023 default filings’ and ‘Default filings of interim accounts.’

The report further explained that the companies included in schedule six filed their Audited and Interim Financial Statements after the regulatory due date.

From the data, Presco Plc received the highest fine of ₦9.4 million, Ardova Plc received a penalty of ₦7.2 million, Briclinks Africa Plc was fined ₦440,000.00. Universal Insurance Plc was fined ₦4.7 million, Unity Bank Plc’s fine was pegged at ₦3.4 million, FBN Holdings Plc was fined ₦3.3 million while Conoil Plc was fined ₦2.5 million and Caverton Offshore Support Group Plc got a ₦1.8 million fine amounting to a total of ₦32.74 million.

Meanwhile, Market operators have applauded the NGX for enforcing the sanctions on the defaulting companies.

Some of the stakeholders who commented on the development noted that the action of the NGX would boost investor confidence in the market since it showed the regulator was up to task in enforcing the need for investors to obtain companies’ financial reports as at when due.

According to the Managing Director of Crane Securities Limited, Mike Eze, when quoted companies adhered to good corporate governance, it made it easier for investors to make informed decisions before trading on the stock market.