The Nigerian Stock Exchange has fined seven financial institutions for not filing their financial results before the regulatory due date.
The affected banks are: Wema Bank, Sterling Bank, Sovereign Trust Insurance, Fidelity Bank, First City Monument Bank, First Bank and Abbey Mortgage Bank.
According to the listing rules provided by the stock exchange, companies are expected to submit their financial year-end result latest by 90 days after the end of each year.
Quarterly results are also expected to be submitted at most 60 days after the end of each quarter.
In its Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2018/2019, the Central Bank of Nigeria threatened to remove the chairman and managing director of any bank that fails to publish its financial results 12 months after the period under review ends.
The CBN also said it would bar the chief executive or his/her nominee from participation at the bankers’ committee and disclose the reason for such suspension.
As penalty for delaying their financial results, the institutions are expected to pay the following fines:
- First Bank – N2.1 million
- Abbey Mortgage Bank – N700,000
- First City Monument Bank – N100,000
- Fidelity Bank – N2.7 million
- Sovereign Trust Insurance – N2.1 million
- Sterling Bank – N1.3 million
- Wema Bank – N800,000.
Other companies fined for the same reason are Academy Press, which is expected to pay N35 million; International Breweries to pay N100,000; Meyer Plc to pay N2.1 million, Presco to pay N1.3 million and Vitafoam to pay N800,000.