By Samiat Dec, 18, 2024 Featured
Nigeria’s SEC to Sanction Companies for Failing to Publish Financial Results OnlineKey Highlights:
1. New Directive:
The Securities and Exchange Commission (SEC) of Nigeria has warned all quoted companies to publish their periodic financial results on their websites alongside filing them with the SEC and relevant exchanges.
2. Enforcement Timeline:
• The directive will take effect from January 2025.
• Non-compliance will attract penalties.
3. Reason for the Mandate:
• The SEC is concerned about companies submitting financial returns to regulatory bodies without publishing them online.
• This practice contravenes Rules 39 and 41 of SEC regulations, which emphasize:
• Transparency in information dissemination.
• Easy access for the investing public to critical financial data.
Why It Matters
• Investor Empowerment:
The SEC highlighted that publishing financial results online allows investors to make informed decisions based on up-to-date information.
• Timely Disclosures:
Timely access to financial data promotes:
• Effective shareholder engagement.
• Investor confidence in the Nigerian capital market.
SEC’s Official Warning
From January 2025, any public company that fails to:
• File periodic returns with the SEC and relevant exchanges
Simultaneously publish the returns on their corporate websites,
…will face appropriate penalties.
Broader Implications
1. For Companies:
• Quoted companies must review their disclosure processes and align with SEC regulations.
2. For Investors:
• Investors are encouraged to leverage the online availability of financial results for due diligence.
3. For the Market:
• The directive strengthens transparency and fosters a level playing field for all market participants.
Key Facts Investors Should Know
• Financial Filing Requirements:
• Companies must file annual financial results with the SEC and Nigerian Exchange Limited (NGX) within 90 days of the accounting year’s end.
• Financial results must also be:
• Published in two national newspapers within 21 days before the Annual General Meeting (AGM).
• Posted on the company’s website, with the web address included in newspaper publications.
This development marks a significant step toward improving transparency in Nigeria’s capital market. What’s your take on this directive? Share your thoughts below!
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