Listed companies on the Nigerian Exchange Group (NGX) are required to submit their annual and quarterly financial statements at particular deadlines based on Exchange’s rules, failure for which penalties will be imposed on such entities.
According to the NGX’s rules 7.4(a), “Every Dealing Member shall submit to The Exchange its annual financial statements, within ninety (90) days of the end of the fiscal year and its quarterly financial statements within forty-five (45) days of the end of the quarter; and any other periodic report within the period stipulated by The Exchange.”
The above implies that for the listed companies having their year-end at December 31st of every year, they are obligated to submit their audited financial statements on or before March 31st.
For the quarterly financial statements, the submission period for these is 45 days after the end of a quarter.
In terms of penalty, a fine of N5000 per day will be imposed on the defaulting entities, amounting to a considerable income to NGX annually.
The NGX further states that “Failure of a Dealing Member to submit Quarterly Returns on the date due for submission shall attract a penalty of Five Thousand Naira (N5,000) per day of default and the Dealing Member shall be suspended from trading with effect from the first trading day after the due date.”
The rule further states that “Failure of a Dealing Member to submit Audited Financial Statements on the date due for submission shall attract a penalty of Five Thousand Naira (N5,000) per day of default for a maximum of four (4) weeks; Where a Dealing Member fails to submit Annual Financial Statement after four (4) weeks of default, the Dealing Member firm shall forthwith be suspended from trading.”
However, there are certain firms that have indicated they will not meet these deadlines, citing various reasons.
The Business Desk of the Nigerian Observer collated some of the notices at the weekend. AIICO Insurance last weekend notified the NGX that its board had just approved its audited financial statements for the period ended December 31, 2023.
“We are pleased to inform the investing public and the Exchange that the Board of Directors of AIICO Insurance Plc (the Company) met as announced and considered and approved the Group’s Audited Financial Statement for the period ended December 31, 2023.
“The Company will proceed to seek the approval of its primary regulator (National Insurance Commission) and thereafter file the outcome with the Nigerian Exchange Limited,” Dr Donald Kanu, company secretary, said.
Royal Exchange, citing the ongoing audit exercise for the group, notified the NGX it will not be able to file in its audited financial statements for 2023, within the deadline stipulated by the NGX rule.
“The Company is optimistic to submit the Audited Financial Statements for the year ended 31 December 2023, and Unaudited Financial Statements for the period ended March 31, 2024 to NGX on or before 29 June and 29 July 2024 respectively,” Royal Exchange stated.
Abbey Mortgage Bank said due to its inability to get CBN’s approval in time, it will miss the stipulated deadlines.
“That this is anchored on the probability that the Bank may not be able to secure the approval of its primary regulator – the Central Bank of Nigeria before the due date of 30 March, 2024. That the anticipated date for the filing is on or before 30 April 2024,” the mortgage institution said.
Prestige Assurance will submit both the 2023 audited financial statements, and the first quarter 2024 unaudited financial statements on or before May 31, 2024.
“This is as a result of unforeseen delays occasioned by the Company’s first-time adoption of the International Financial Reporting Standards (IFRS 17) in the preparation of its Audited Financial Statements for the year ended 31st December, 2023. This adoption is pursuant to the directive issued by the primary regulator, the National Insurance Commission (NAICOM), with effect from 1st January 2023,” Prestige Assurance stated in a note to the NGX.
Tourist Company of Nigeria, indicating that the opinion of its external audited on its financial statements will be qualified, said it will file the report on or before 28 June 2024.
Also, Lasaco Assurance will submit its audited financial statements for 2023 on or before 30th June 2024.
Similarly, VFD Group said it will submit its audited financial statements for 2023 on or before April 30, 2024.
“The implementation of the International Accounting Standard (IAS) 29 –Financial Reporting in Hyper-Inflationary Economies with our auditors is taking longer than planned and continues to affect the timely completion of the audit,” VFD Group said in a note to the NGX.
Sterling Holdings is among the institutions that missed the submission deadlines.
