Banks and 18 Other Entities Penalized with N125 Million for Late Submissions

Investigations by The PUNCH have revealed that a total of eight banks and 18 additional listed companies have collectively incurred fines amounting to N125 million. These penalties were imposed due to their failure to meet the requirement set by the Nigerian Exchange (NGX) to submit their audited financial statements for 2022 and quarterly reports for the first half of 2023 on time.

Among the penalized banks were Unity Bank, FBN Holdings, Access Holdings, Fidelity Bank, Jaiz Bank, Wema Bank, Guaranty Trust Holdings Plc, and Ecobank Transnational Incorporated.

The fine was also extended to companies such as John Holt, PZ Cussons, Notore Chemical, Glaxo SmithKline Consumer Nigeria, Industrial Medical and Gases Nigeria, and Juli Plc, who were found to be in breach.

According to the NGX’s post-listing rules, publicly quoted companies are obligated to submit their audited results within 90 calendar days, or three months, after the completion of the financial period. Furthermore, these companies are expected to present interim reports no later than 30 calendar days after the end of the relevant period.

Based on the recent X-Compliance Report issued by NGX’s regulatory division, FBN Holdings was fined for the delayed submission of both its 2022 financial results and its Q1 2023 report. The bank paid N6.3 million for the former offense and N3.3 million for the latter.

Unity Bank faced penalties of N6.4 million for failing to submit its 2022 results on time, along with an additional N3.4 million for the late submission of its Q1 2023 interim reports.

Other fines were imposed as follows:
– Fidelity Bank, GTCO, and Wema Bank paid N2.7 million, N1.4 million, and N1.9 million respectively.
– Access Holdings: N2 million
– Jaiz Bank: N600,000
– Ecobank: N3.2 million
– John Holt: N3.2 million
– PZ Cussons: N4.8 million
– Notore Chemical: N500,000
– GSK (Glaxo SmithKline Consumer Nigeria): N1.3 million
– Industrial Medical and Gases Nigeria: N1.2 million
– Juli Plc: N120,000
– NPF Microfinance Bank: N1.8 million
– Daar Communications: N1.7 million
– Champion Breweries: N1.6 million
– Abbey Mortgage Bank Plc: N1.4 million
– Regency Alliance Insurance: N1.4 million
– Thomas Wyatt Nigeria: N4.9 million
– Presco Plc: N24.8 million
– Ardova: N18.6 million
– Universal Insurance Plc: N12.4 million
– Conoil: N7.9 million
– Caverton Offshore Support Group: N5.7 million
– Briclinks Africa Plc: N590,000

David Adonri, Vice-chairman of Highcap Securities, emphasized that these fines play a critical role in upholding the integrity of the market. He further highlighted the significance of accurate corporate disclosures in the information-driven capital market. Adonri explained that companies facing difficulties in meeting disclosure deadlines can formally request an extension from the exchange.