The Nigerian Stock Exchange, Nigeria’s apex market for trade in stocks and securities has sent a bad signal to investors and dealers that the shares of the under-listed 11 Nigerian companies are now suspended from trading on the Exchange. The suspension is because the companies failed to file their accounts with the NSE within the stipulated time.
Nigeria’s NSE’s market rules states that if an issuer fails to file the relevant accounts by the expiration of the Cure Period, the bourse will first send to the Issuer a “Second Filing Deficiency Notification” within two business days after the end of the Cure Period; suspend trading in the Issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the Market within 24 hours of the suspension.
A Look At The Affected Companies
The suspended companies include:
Conoil Plc
This company was also suspended last year for failing to file its audited financial statements as required by the market rules. The company declared over N1.4 billion dividends during its last financial year. The dividend declaration meant N2.00 on every 50 kobo ordinary share of the company.
Between 2012 and 2016, the company has paid a total of N8.4bn as a dividend. Conoil Plc is Nigeria’s indigenous petroleum marketing company. The 2016 revenue of the company stood at 85 billion naira. Nigerian Billionaire Mike Adenuga is the Chairman of the company.
FTN Cocoa Processors Plc
The company was also suspended last year October 8, 2018, for non-compliance with rule 3.1 of the Exchange (Issuers’ Rules) − rules for the filing of accounts and treatment of default filing. is a provider of processed agricultural commodities. The company’s market capitalization stands at NGN440m and it sold at 20 kobo per share on July 1 before the suspension.
The company is one of the few cocoa processing industries in the country. It supplies beverages to Nigeria’s leading beverage companies like Nestle Nigeria Plc and Promasidor Nigeria Limited, makers of Cowbell Milk and Cocoa products. The company has failed to convene an annual general meeting or declare a dividend for two consecutive years now. In a statement issued in March 2019, the company said it has lacked sufficient working capital to continue with production.
Goldlink Insurance Plc
The company has previously been suspended in 2017 for failure to file the relevant accounts by the expiration of the Cure Period. In 2010, the company paid its investors 2 kobo dividend per share. The company has not declared any dividend since 2017.
Lasaco Assurance Plc
The insurance declared 4 kobo per share dividend last year. Its market capitalization stands at NGN2.124 Billion.
Niger Insurance Plc
The company’s annual report for the year ended December 31, 2017. The report indicated a zero dividend per share. The company has also been faced with claims of its inability to pay off its indebtedness.
R.T. Briscoe Plc
The company is the distributor of Toyota motors in Nigeria. Trading on the company’s shares were suspended in 2018 for failing to file relevant financial results and accounts as expected.
Other suspended companies include:
- Resort Savings & Loans
- Royal Exchange
- Standard Alliance Insurance
- Universal Insurance.
The Implication of The Suspension
In view of the submission of its accounts and pursuant to rule 3.3 of the Default Filing Rules, which provides that the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts, provided the Exchange is satisfied that the accounts comply with all applicable rules of the Exchange, the Exchange shall thereafter also announce through the medium by which the public and the SEC were initially notified of the suspension.
Consequently, the suspension of the above-listed companies will only be lifted upon the submission of the relevant accounts and provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.