Nigerian Stock Exchange Fines Eight Banks N102.7m

The Nigerian Stock Exchange has sanctioned eight banks with fines totalling N102.7m for failing to file their financial statements at the regulatory date.

The Exchange launched its new sanction regime for the delay in submission of companies’ results on January 1, 2018, saying companies might pay fines ranging from N100, 000 to more than N100m as penalties for delay in the submission of their corporate earnings reports.

The NSE requires quoted companies to file their unaudited quarterly accounts not later than 30 calendar days after the relevant quarter.

Under the new rules, late submission attracts N9m in the first 90 days, N18m in the next 90 days and N400, 000 per day until the date of submission.

Data obtained from the NSE revealed that the total amount of fines due this year was N341.6m, while the carried forward amount of last year was N424.9m, bringing the total amount due from fines to N766.5m.

The Exchange said it applied sanctions in accordance with the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules).

The data showed that of the eight banks sanctioned, Unity Bank Plc owed the highest amount of N80.2m.

Diamond Bank Plc followed as the second highly sanctioned bank with a N7.3m fine.

The bank had an outstanding fine of N2.4m from 2017, added to the N3.8m and N1.1m fines it received at different times this year.

Fidelity Bank Plc followed, with a N6.2m fine, the breakdown of which showed a carried forward amount of N700,000 from 2017.

Union Bank was fined N4.7m for late filing of its audited 2017 and first quarter 2018 financial statements, while FBN Holdings Plc was fined N2.1m for failing to file its audited 2017 financial statements as and when due.

Sterling Bank Plc, Wema Bank Plc, and First City Monument Bank Plc were fined N1.3m, N800,000, and N100,000 respectively for late filing of their audited 2017 financial statements.