Ecobank Fined N3.2m, PZ Cussons Slammed with N4.8m Amid Clampdowns

The Nigeria Exchange Limited (NGX) has imposed sanctions on Ecobank Transnational Incorporated, PZ Cussons, John Holt, and Guinea Insurance Plc for violating the capital market regulations in Nigeria.

For various infractions committed during the financial year prior, the four companies were hit with fines totaling N11.65 million.

This is supported by the X-Compliance Report from the capital market regulator, which was acquired on Tuesday, March 21, 2023, but is dated March 17, 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 on-going 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.

The largest penalties, N4.8 million, was imposed on PZ Cussons for failing to file its audited and interim financial accounts in 2022.

John Holt and Ecobank were both punished with N3.2 million fines for breaking the laws governing the publishing of financial accounts.

Guinea Insurance received the lowest fine of N453,600 for failing to use the issuers’ site to submit sensitive information.

The study also details other offenses committed by other businesses, such as Multi-Trex Integrated Foods Plc’s breach of the NGX’s rule requiring the production of notice and other information paperwork.

Also, it was claimed that Infinity Trust Mortgage Bank Plc had broken the rules of rule 17.5 on price-sensitive information and the exchange’s 2015 issuers’ rules by failing to notify the appointment’s confirmation of its new managing director.

Infinity Trust Mortgage Bank and Multi-Trex Integrated Foods were both ordered to complete Mandatory Compliance Training, but neither company was given a financial penalty.