NGX suspends shares of Unity Bank and seven other companies

NGX Regulation, the regulatory arm of NGX Group, has suspended trading in shares of eight companies because they have not filed their corresponding financial statements for 2023.

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

According to the market bulletin, the companies affected include Unity Bank, C&I Leasing Plc, Guinea Insurance, Lasaco Assurance, Mutual Benefits Assurance, NPF Microfinance Bank, Regency Alliance Insurance and Secure Electronic Technology Plc.

Iwenekhai said: “Trading in the shares of the following eight companies has been suspended with effect from today, Monday, July 8, 2024, on the Nigerian Exchange Limited (NGX or The Exchange) due to their failure to file their audited financial statements for the financial year ended December 31, 2023.”

According to the post-listing requirements, companies listed on the stock exchange are required to submit their accounts and other documents within a specified time frame.

NGX RegCo stated that it acted pursuant to Rule 3.1 on Account Filing and Treatment of Standard Filings (Standard Filing Rules), which states: “If an issuer fails to file the applicable accounts by the end of the cure period, the exchange will (a) send the issuer a second filing deficiency notice within two 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 and the market within 24 hours of the suspension.”

According to the regulation, the suspension of trading in the shares of the companies concerned would be lifted as soon as they comply with the rules.

Due to the introduction of the IFRS 17 standard, insurance companies experienced delays in submitting their 2023 annual reports.

IFRS 17 requires an entity to recognise profits when providing insurance services (rather than when receiving premiums) and to provide information about profits from insurance contracts that the entity expects to earn in the future.