The Nigerian Exchange Limited has penalized 16 businesses for different market infractions over the course of three years. LASACO Assurance Plc, Presco Plc, Ardova Plc, C&I Leasing Plc, and 12 other listed firms on the bourse were each fined N779.5m by the NGX between 2020 and 2022.
The failure of the businesses to follow some post-listing requirements of the Exchange, particularly the prompt filing of results and accounts, bothered the penalties. 14 of the businesses received N170.6 million in sanctions in 2022, while the NGX fined seven of the companies N586 million in sanctions back in 2021. Three of the companies received N22.9 million in 2020.
ETI, FBN Holdings Plc, Union Bank of Nigeria Plc, Honeywell Flour Mills Plc, Unity Bank Plc, Presco Plc, Ardova Plc, C&I Leasing Plc, Coronation Insurance Plc, Royal Exchange Plc, PZ Cussons Nigeria Plc, LASACO Assurance Plc, Mutual Benefits Assurance Plc, and Omatek Ventures Plc were among the 14 businesses penalized in 2022.
Coronation Insurance received a N14.9 million punishment from the Exchange in 2022, followed by fines of N11.6 million and N9.7 million for C & I Leasing and Ardova, respectively. The administration of the Exchange fined Presco N5.1m, and Honeywell Flour Mills N1.2m for failing to submit its third-quarter 2021 results and accounts by the deadline.
Financial institutions sanctioned included ETI which was fined N3.2m in 2022; FBN Holdings was fined N8.1m; Union Bank of Nigeria, N1.2m; Fidelity Bank Plc was fined N1.6m in 2021 while Unity Bank Plc was sanctioned N4.2m.
It’s interesting to note that Omatek Ventures was fined N85.3m by the Exchange in 2022. The Information and Communications Technology company was also fined N537.2 million for neglecting to provide the investing public with the 2015–2018 audited results and accounts.
Additionally, the Exchange penalized LASACO Assurance N29.2 between 2020 and 2022 for not meeting certain post-listing criteria. According to the summary, LASACO Assurance received a N5.3 million fine in 2022 for failing to release its 2021 audited financial statements to the investing public. Additionally, the company was fined N15.1m in 2021 for failing to file first-quarter 2021 results and audited 2020 accounts.
LASACO Assurance was also penalised the sum of N8.8m in 2020 for not submitting audited 2019, first quarter 2020 and second quarter 2020 financial results. Findings showed investors had shunned trading in the stocks of some of the affected companies. Also, some of the firms especially Omatek Ventures have notified the Exchange of their delisting plans.
The Exchange in a statement stated that “The board of NGX RegCo approved the reclassification of the Omatek Ventures from delisting watch list to restructuring status giving the Company time to source investors and reclassify its operations.”