NGX Imposes N74 Million Fine on Lasaco, Guinea, 5 Other Insurance Companies
- The Nigerian Exchange fined five insurance companies N74 million for their late submission of financial reports
- The goal of NGX Regulation Limited's X-Compliance Report transparency initiative is to protect investors and maintain market integrity
- According to the NGX Rulebook (Issuers' Rules), businesses who are listed on the exchange must timely submit their financial statements
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigerian Exchange has fined five insurance companies N74 million for failing to submit their financial reports on time.
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This was revealed in the local stock exchange's most recent X-Compliance Report, which was made public on Friday, December 27, 2024.
NGX Regulation Limited's X-Compliance Report transparency effort aims to preserve market integrity and safeguard investors by offering compliance-related data on all listed businesses.
According to the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of NGX (Issuers’ Rules), companies listed on NGX are required to submit their financial statements on time.
The most recent report stated that several insurance companies, including Guinea Insurance Plc, Universal Insurance Plc, Regency Alliance Insurance, Lasaco Assurance, and African Alliance Insurance Plc, had failed to file their 2023 Annual Financial Statement.
Punch reports that Lasaco was fined N8.7 million for failing to submit its 2023 AFS. The final result was turned in on September 25, 2024. On September 16, 2024, Regency Alliance Insurance Plc filed its results, and as a result, it was fined N7.8 million.
Guinea Insurance was also fined N3.4 million for failing to submit its 2023 annual report by the deadline, while Universal Insurance Plc was fined N2.8 million. Their final results were sent to the exchange on August 3rd and July 28th, 2024.
Similarly, Universal Insurance was also fined N3 million for failing to submit its unaudited financial statement for the first quarter of 2024. The report was submitted on July 30, 2024.
When African Alliance Insurance Company eventually filed its 2022 annual report on November 22, 2023, it was late and was fined N48.6 million, the highest amount.
This was the company's first financial statement to be sent to the exchange in almost a year.
The National Insurance Commission, which regulates the insurance sector, recently sacked African Alliance's board and management for failing to meet its obligations to clients, especially annuitants.
NGX unveils e-platform for Nigerians to buy shares
Legit.ng also earlier reported that as banks begin the push to raise capital following the directive of the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) and the Nigerian Exchange Group unveiled digital solutions for the capital-raising process, focusing on public offers and rights issues.
At the unveiling, the NGX stated that the platform represents a major advancement in digitizing the capital-raising process for issuers.
Experts say stakeholders would benefit from enhanced efficiency, streamlined due diligence capabilities, ease of use and accessibility, faster information-sharing, and seamless compliance with regulatory requirements embedded in the platform.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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