Nigerian Stock Exchange freezes trading in shares of Unity Bank, six other companies

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The Nigerian Exchange (NGX) has dealt a blow to eight listed companies by suspending trading in their shares, effective today, July 8th, 2024. This action comes in response to the companies’ failure to submit their audited financial statements for the year ended December 31st, 2023.

In a market bulletin on Monday, the Head of the Issuer Regulation Department, Godstime Iwenekhai, said the suspension was effective immediately.

Iwenekhai said, “Trading in the shares of the eight companies below have been suspended from the facilities of Nigerian Exchange Limited (NGX or The Exchange) effective today, Monday, 8 July 2024 for not filing their Audited Financial Statements for the year ended 31 December 2023.”

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Companies Affected:

The companies caught in this suspension net include:

• Unity Bank Plc
• 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

Reason for Suspension:

According to a market bulletin issued by NGX Regulation, the regulatory arm of the Nigerian Exchange Group, the suspension is a direct consequence of the companies’ non-compliance with listing rules. These rules mandate the timely submission of audited financial statements to ensure investors have access to accurate and up-to-date financial information about the companies they invest in.

Impact on Investors:

The suspension of trading significantly impacts investors who hold shares in these companies. They are now unable to buy or sell their shares on the NGX platform until the suspension is lifted. This can lead to frustration and potentially financial losses, especially for investors who need immediate access to their capital.

Restoring Trading:

The NGX has outlined the steps these companies must take to regain compliance and resume trading. They must submit their audited financial statements, along with any outstanding annual reports, to the Exchange. Additionally, they may be required to pay any penalties imposed by the NGX for the late filing.

Implications for the Market:

This incident raises concerns about corporate governance and transparency within some listed companies on the NGX. It highlights the importance of adherence to listing rules and the potential consequences for non-compliance. The suspension could also discourage potential investors from entering the Nigerian market, wary of similar situations.

Tags: NGX, Nigerian Exchange Limited, Unity Bank, Lasaco Assurance Plc, Mutual Benefits Assurance Plc, NPF Microfinance Bank Plc, Regency Alliance Insurance Plc