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Ardova Presco 11 other companies get N90.69 million fine for default filings



The Nigerian Exchange Limited (NGX) has fined thirteen quoted companies N90.690 million for failure to file their quarterly interim financial statements after the regulatory due date.

The companies include Thomas Wyatt Nigeria Plc, Royal Exchange Plc, Flour Mills of Nigeria Plc, Honeywell Flour Mills Plc, and Presco Plc.

Others include Ardova Plc, Briclinks Africa Plc, C&I Leasing Plc, Universal Insurance Plc, Unity Bank Plc, FBN Holdings Plc, Conoil Plc, Caverton Offshore Support Group Plc.

What market operators said

Market operators agreed that the sanction for non-compliance with the rules of listing on NGX is a welcome development, as it will lead to more appropriate pricing of securities.

More quoted entities would be compelled to give information to the market on a timely basis.

The Managing Director, of Crane Securities Limited, Mr. Mike Eze, while reacting to the development on an inquiry by Nairametrics, said the action of NGX would boost investor confidence in the market because it is sending a signal for the need for investors to get companies’ financial reports as at when due.

He added that investors needed to make informed decisions before choosing which stock to buy and this can only be achieved if there is adherence to good corporate governance by the quoted companies.

According to the founder of, the Independent Shareholders Association of Nigeria (ISAN), Sir. Sunny Nwosu, going by what the exchange said, those involved deserved to be sanctioned.

Nwosu noted that the affected companies and persons supposed to have ensured that they met the requirements as such would help shareholders to understand their financial health for investment decisions.

  • “It is not a new thing and it does not come to us as a surprise. We have constantly written to the exchange and raised the issue at annual general meetings that there is a need to know the status of these companies to enable us to take investment position,” he noted.

Also, the President, of Progressive Shareholders Association, Mr. Boniface Okezie, said it was better for Nigerians to have a few companies that are ready to play by the rules than to have all the companies in the world that are not ready to satisfy post-listing requirements.

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Okezie said that penalizing companies for non-compliance with the rules of listing on NGX was a welcome development, as it will lead to more appropriate pricing of securities.

He said more entities would be compelled to give information to the market on a timely basis, adding that investor confidence in the regulatory capacity of NGX and the market would be enhanced.

A founding member of Nigeria Shareholders Solidarity Association and one of the leading shareholder activists, Alhaji Gbadebo Olatokunbo said:

  • “We must always abide by the rules, sanctions would make the companies sit up and post their results as and when due, thereby providing investors, analysts, and stockbrokers the platform to predict the real value of the companies”.

What you should know

The Exchange in its X-Compliance report explained that the initiative was designed to maintain market integrity and protect the investors by providing compliance-related information on all listed companies.

  • The report thus stated that “Companies that are listed on the Exchange are required to adhere to high disclosure standards which are prescribed in Appendix 111 of the Listing Rules.
  • “Financial information which is periodic disclosure and on-going material events disclosure should be released to The Exchange in a timely manner to enable it efficiently perform its function of maintaining an orderly market”.
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