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Eight Companies Suspended from Trading on the Nigerian Exchange Over Defaulted Filings.

The Nigerian Exchange Limited (NGX) has suspended trading in the shares of eight publicly listed companies. The Nigerian Exchange Limited (NGX) has informed the investing public of the suspension of trading in the shares of eight companies listed on its platform. This announcement was made via a press release.

The suspension, effective immediately, comes as a result of these companies’ failure to file their Audited Financial Statements for the fiscal year ended December 31, 2023.This action is in accordance with Rule 3.1 of the Default Filing Rules, which mandates stringent measures against issuers that do not meet their financial reporting obligations within the specified timeline.

The affected companies include:

C & I Leasing Plc

Guinea Insurance Plc

Lasaco Assurance Plc

Mutual Benefits Assurance Plc

NPF Microfinance Bank Plc

Regency Alliance Insurance Plc

Secure Electronic Technology Plc

Unity Bank Plc

The Default Filing Rules are clear about the consequences for companies that do not file their financial statements on time. After the expiration of a 90-day Cure Period from the initial filing deadline, the NGX is required to:

a) Issue a Second Filing Deficiency Notification within two business days after the end of the Cure Period.

b) Suspend trading in the issuer’s securities.

c) Notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.

According to the statement signed by Godstime Iwenekhai, Head of, the Listings Regulation Department, the NGX noted:

“Trading License Holders and the investing public are hereby notified that pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, (Default Filing Rules), which provides that: “If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will: a) Send to the Issuer a “Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period; b) Suspend trading in the Issuer’s securities; and c) Notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension”,

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“Trading in the shares of the eight (8) companies has been suspended from the facilities of Nigerian Exchange Limited (NGX) effective Monday, 8 July 2024 having failed to file their Audited Financial Statements for the year ended 31 December 2023.

“In accordance with the Default Filing Rules set forth above, the suspension of trading in the shares of the above-mentioned companies will only be lifted upon the submission of the relevant accounts”.

The suspension is a critical reminder to all listed companies about the importance of timely financial disclosures. The lack of timely financial statements undermines investor confidence and market integrity, which are foundational to a well-functioning capital market. By enforcing these rules, the NGX highlights its commitment to maintaining high standards of corporate governance and protecting the interests of investors.

The immediate reaction from the market has been one of caution. Investors holding shares in these suspended companies will have their holdings effectively frozen, unable to buy or sell shares until the suspensions are lifted.

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