Ecobank Fined N3.2m, PZ Cussons Slammed With N4.8m Amid Clampdown

Ecobank Transnational Incorporated, PZ Cussons, John Holt and Guinea Insurance Plc have been penalised by the Nigeria Exchange Limited (NGX) for flouting the rules of the Nigerian capital market.

The four companies were slammed with N11.65 million fines combined for various offences committed during the financial period of last year. 

This is according to the capital market authority’s X-Compliance Report obtained on Tuesday, 21 March 2023, but dated 17 March 2023.

“X-Compliance Report is a transparency initiative of The Nigerian Exchange Limited (NGX) which is designed to maintain market integrity and protect the investors by providing compliance-related information on all listed companies. 

“Companies listed on NGX are required to adhere to high disclosure standards which are prescribed in Appendix 111 of the Listing Rules. 

“Financial information which is periodic disclosure and ongoing material events disclosure should be released to NGX in a timely manner to enable it efficiently perform its function of maintaining an orderly market,” the Nigeria Exchange Limited said in a statement. 

PZ Cussons received the highest fine of N4.8 million for defaulting on the filing of their Audited and Interim financial statements in 2022.

Ecobank and John Holt were sanctioned and fined N3.2 million each for also flouting the rules covering the release of financial statements. 

For Guinea Insurance, after failing to utilise the issuers’ portal to file sensitive information, it was handed the lowest fine of N453,600. 

The report also discloses other offences committed by other companies, such as violation of the NGX’s rule on submission of notice and other information documentation by Multi-Trex Integrated Foods Plc. 

Also, Infinity Trust Mortgage Bank Plc was reported to have violated the provisions of rule 17.5 on price-sensitive information, the rulebook of the exchange 2015 issuers’ rules and failed to disclose the confirmation of the appointment of its new managing director. 

Both Infinity Trust Mortgage Bank and Multi-Trex Integrated Foods didn’t receive a monetary fine, but the companies were directed to undergo Mandatory Compliance Training.