The Nation Newspaper

Tag: companies

  • Stock Exchange suspends trading on 17 companies

    Stock Exchange suspends trading on 17 companies

    the Nigerian Stock Exchange (NSE) has suspended trading on the shares of 17 companies following the failure of the companies to adhere to best corporate governance and extant post-listing requirements.

    The suspended companies included African Alliance Insurance, Equity Assurance,  Fortis Microfinance Bank, Guinea Insurance, Premier Paints, Resort Savings & Loans, Sovereign Trust Insurance, African Paints (Nigeria), Aso Savings & Loans, Ekocorp, Evans Medical, Goldlink Insurance, Great Nigeria Insurance, Omatek Ventures, Union Dicon Salt, Union Homes Savings & Loans and Universal Insurance Company.

    A circular obtained by The Nation indicated that the companies were suspended after they failed to file their accounts and operational reports as required by the listing rules at the Exchange. The suspension will remain in place until the companies file the relevant accounts and reports.

    With the suspension, investors will not be able to trade on the shares of the companies, thus denying them opportunities to raise funds through such investments in case of financial needs.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

    Most quoted companies including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year.  Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31. While March 31 is usually the deadline for submission of annual report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.

    NSE tags and applies fines on companies that fail to meet earnings reports’ deadline. The Exchange had on January 1, 2017 launched its new sanction regime for delay in submission of companies’ results. Under the new sanction regime, companies may pay fines that range from N100, 000 to more than N100 million as penalties for delay in the submission of their corporate earnings reports.

    Companies that also delayed their financial statements and accounts face threats of suspension and delisting in addition to the monetary fines.

  • Stock Exchange suspends trading on 17 companies

    Stock Exchange suspends trading on 17 companies

    The Nigerian Stock Exchange (NSE) has suspended trading on the shares of 17 companies following the failure of the companies to adhere to best corporate governance and extant post-listing requirements.

    The suspended companies included African Alliance Insurance, Equity Assurance,  Fortis Microfinance Bank, Guinea Insurance, Premier Paints, Resort Savings & Loans, Sovereign Trust Insurance, African Paints (Nigeria), Aso Savings & Loans, Ekocorp, Evans Medical, Goldlink Insurance, Great Nigeria Insurance, Omatek Ventures, Union Dicon Salt and Union Homes Savings & Loans and Universal Insurance Company.

    A circular obtained by The Nation indicated that the companies were suspended after they failed to file their accounts and operational reports as required by the listing rules at the Exchange. The suspension will remain in place until the companies file the relevant accounts and reports.

    With the suspension, investors will not be able to trade on the shares of the companies, thus denying them opportunities to raise funds through such investments in case of financial needs.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

    Most quoted companies including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year.  Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31. While March 31 is usually the deadline for submission of annual report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.

    NSE tags and applies fines on companies that fail to meet earnings reports’ deadline. The Exchange had on January 1, 2017 launched its new sanction regime for delay in submission of companies’ results. Under the new sanction regime, companies may pay fines that range from N100, 000 to more than N100 million as penalties for delay in the submission of their corporate earnings reports.

    Companies that also delayed their financial statements and accounts face threats of suspension and delisting in addition to the monetary fines.

    Under the new rules, quoted companies will be required to file their unaudited quarterly accounts with the NSE not later than 30 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication. Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the newspaper publication. Where the company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter.

    For annual audited accounts, the new rules require companies to file their audited annual report and accounts with the Exchange not later than 90 calendar days after the relevant year end, and published in at least two national daily newspapers not later than 21 calendar days before the date of the annual general meeting, and posted same on the company’s website with the web address disclosed in the newspaper publications. Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the publication.

    Under the new rules, late submission under the first instance of 90 days could attract N9 million, the additional period of 90 days will attract N18 million while such delay beyond the first 180 days to the next 180 days could attract as much as N72 million, bringing fines payable by a defaulting company within a year to N99 million.

     

  • Lagos’ fifth top destination of Fortune 500 companies

    Lagos is the fifth leading destination of Fortune 500 companies within the Middle East and Africa (MEA), a new report  by Infomineo, a global business research company specialising in the region, has said.

    Nigeria’s   commercial   nerve   centre   was   ahead   of   Cairo,   but   queues   behind   Dubai,     Johannesburg, Casablanca and Nairobi. Casablanca and Nairobi rank as leading destinations for Fortune 500 companies establishing international headquarters, the report said.

    The report said overall, there was a 17 per cent increase in the number of Fortune 500 companies   in   MEA  in   2016   compared   to   2015,   with   Johannesburg   being   the   leading destination for Africa Egypt remains behind the leaders due to political instability. However, it has seen a 250 percent increase in Fortune 500 investment since 2015, the report said. Germany and France are leading in terms of coverage rate while China has the lowest presence in the region.

    The MEA region has become increasingly important for the majority of global Fortune 500 companies. The report focuses on multinationals looking at entering, or already present, in the MEA region.

    The Infomineo analysis includes the regional footprint of multinationals in the MEA region, the most commonly chosen cities, and the factors which influence the selection of a region, country and city – each element revealing the dynamic growth patterns within the region and a clear trend of Fortune 500 companies establishing presence in MEA.

    Last year, 196 Fortune 500 companies had established a dedicated regional headquarters in the MEA  region. In the Middle-East, Dubai is the most  popular choice with  138 companies   establishing a dedicated entity in the city.

    There has also been a marked uptick in companies deciding to cover MEA from outside of the region – 38 companies up from 22 have established a regional headquarters in areas such as London, Brussels and Paris.

    Industry type plays a pivotal role in the selection of city and country. Financial services are  more likely to base  MEA coverage from London, while technology companies are  more inclined towards Casablanca or Lagos.

    The   latter   city   is   also   the   premier   location   for   organisations   looking   to   manage   their operations across Western Africa with 12 Fortune 500 companies already established in the city.

  • NSE gives 142 companies Oct. 31 deadline on earnings report

    NSE gives 142 companies Oct. 31 deadline on earnings report

    Atotal of 142 companies are expected to submit their third quarter (Q3)  earnings report in the next 16 working days,  according to the Nigerian Stock Exchange’s (NSE’s) filing regulation.

    This is necessary to avoid  the poor corporate governance tag and sanction of the NSE.

    The filing calendar of the NSE obtained at the weekend indicated that most of the quoted companies are  required to submit their nine-month earnings report   on October 31, this year.

    The Nation’s investigation at the weekend showed that  of the 144 companies that are expected to submit their reports, only two have  done so. The early filers were United Capital Limited and Infinity Trust Mortgage Bank Plc.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than three months after the expiration of the period.They also require quoted companies to submit interim report not later than 30 days after the end of the  period.

    Most quoted companies, including banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31. While March 31 is usually the deadline for submission of yearly report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.

    The regulatory filing calendar indicated that Monday, October 31 would be the deadline for the results for the Q3 ended September 30, this year. NSE  fines companies that fail to meet reports’ deadline.

    Sources at the weekend said there would be increased inflow of Q3 earnings reports in the next two weeks, citing the previous compliance record of more than 85 per cent.

    The sources added that several companies could finalise their Q3 reports this week while the rate of submission might pick up by the weekend.

    Companies that are expected to submit their reports in the 16 working days include Julius Berger Nigeria, Lafarge Africa, Lasaco Assurance, Law Union and Rock Insurance, Learn Africa, Linkage Assurance, Livestock Feeds, Mansard Insurance, May & Baker Nigeria, Mcnichols, Mobil Oil Nigeria, Morison Industries, Mrs Oil, Mtech Communications and MTI.

    Others are Multiverse Resources, Mutual Benefit Assurance, National Salt Company Nigeria, NCR, NEM Insurance Company, Nestle Nigeria, Niger Insurance Company, Nigeria Sewing Machine Manufacturing Compan, Nigerian Aviation Handling Company, Nigerian Breweries, Nigerian Ropes, Nigerian Wire & Cable, NPF Microfinance Bank, Oando, Okomu Oil Palm, Omatek Ventures.

    Omoluabi Savings and Loans, Paints and Coatings Manufacturing, Pharma Deko, Portland Paint & Product, Premier Paints, Presco, Prestige Assurance Company, RT Briscoe, Regency Alliance Insurance, Resort Savings & Loans and Rokana Industries are also expected to same.

    While Royal Exchange, SCOA Nigeria, Secure Electronic Technologies, Seplat Petroleum Development Co Ltd, Skye Bank, Smart Products Nigeria, Sovereign Trust Insurance, Staco,  Stanbic IBTC Holdings, Standard Alliance, Sterling Bank, Stokvis Nigeria, Studio Press, Tantalizers, Total Nigeria, Trans Nationwide Express, Transcorp Hotels, Transnational Corporation of Nigeria, UAC of Nigeria, UACN Property Development, United Bank for Africa, UNIC Insurance, and Unilever Nigeria and many others are expected to do so.

    Union Bank of Nigeria, Union Diagnostic & Clinical Services, Union Dicon Salt, Union Homes Savings & Loans, Union Ventures &Petroleum, Navitus Energy, Unity Bank, Unity Kapital Assurance, Universal Insurance Company, UTC Nigeria, Wema Bank, West Africa Glass Industries and Zenith Bank.

    Others included AG Leventis Nigeria, Abbey Mortgage Bank, Africa Prudential Registrar, African Alliance Insurance, African Paints , Afrik Pharmaceuticals ,Aiico Insurance ,Airline Services & Logistics, ,Alumaco ,Aluminium Extrusion Nigeria,  Anino International ,Arbico , Ashaka Cement , Aso Savings & Loans, Associated Bus Company, Austin Laz & Company ,B.O.C. Gases , Beco Petroleum Product, Beta Glass Company, C &I Leasing, Cadbury Nigeria, CAP, Capital Hotel, Capital Oil, Caverton Offshore Support Group Grp, Cement Company of Northern Nigeria ,Champion Breweries ,Chams ,Computer Warehouse Group, Conoil, Consolidated Hallmark Insurance, Continental Reinsurance, Cornerstone Insurance, Courteville Business Solutions ,Custodian and  Allied Insurance, Daar Communications, Dangote Cement, Dangote Sugar, Diamond Bank, DN Meyer, Ecobank Transnational Incorporated, Ekocorp ,Equity Assurance, Eterna Oil & Gas ,Evans Medical, FBN Holdings, FCMB Group, Fidelity Bank, First Aluminium Nigeria, Forte Oil, Fortis Microfinance Bank, FTN Cocoa Processors ,GlaxoSmithKline Nigeria, Goldlink Insurance, Great Nigeria Insurance, Guaranty Trust Bank, Guinea Insurance, Ikeja Hotel , Intercontinental Wapic Insurance, International Energy Insurance, Investment & Allied Assurance, IPWA, Japaul Nigeria , Jos International Breweries and Juli Plc.

     

  • Avoid bad companies, graduands told

    Graduating pupils of Livingstone College Ikorodu, Lagos have been advised to keep off bad companies, as the kind of people they interact with will either bring them fulfillment or sorrow.

    The school’s founder Dr Kola Christwealth spoke during the school’s valedictory and graduation  at Ikorodu Town Hall.

    He said: “As you go into the world, you will come across different kinds of people, the good, the bad and the ugly; the generous and the stingy, the optimist and pessimist.

    “The runner, walker, crawler and the consistent. You will come across the dynamic and the fixated, the neat, the dirty, the organised and the disorganised, the spiritual, free thinker and the atheist.”

    He added:”There is power in association and you will be influenced by such people. Whether you like it or not, your association will either speed up or delay the realisation of your vision.”

    Christwealth urged the graduands to seek those who would inspire them to greatness as well as encourage their progress.

    Four hundred and sixty graduands across the senior secondary school cadre passed out from the school.

    The school’s Administrator Mr Abayomi Adeniyi, charged students on the advantages and disadvantages of their new- found freedom and independence.

    “You are gradually taking your own destiny in your own hands. Owing to your freedom, you are bound to flow amid many co-travellers with their various types of influence. It is up to you to decide what suits your purpose and ambition,” Adeniyi said.

    Adeniyi said aside academics, other students that excelled in extracurricular activities would similarly be encouraged.

     

  • SEC, NSE to go after indicted companies’ directors

    SEC, NSE to go after indicted companies’ directors

    The Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) are to sanction indicted companies’ directors, including seizing their assets.

    In what appeared to be a renewed push in line with the  government’s anti-corruption campaign, sources said the capital market authorities would henceforth go after directors of companies that abused their offices and took advantage of their positions to undermine corporate performance.

    Interim report by the Central Bank of Nigeria (CBN)-appointed new board for a quoted bank indicted the sacked directors of the bank of corporate governance failures, resulting in near collapse of the bank, which led to the apex bank’s intervention.

    Also, the Supreme Court recently ordered three former managing directors of three defunct quoted banks – Mr Okey Nwosu of Finbank Plc, Dr. Erastus Akingbola of Intercontinental Bank and Mr Francis Atuche of Bank PHB-to stand trial for alleged fraud. Akingbola was accused of stealing N47.1 billion while Atuche and Nwosu were accused of stealing N25.7 billion and N18 billion, totalling N90 billion.

    Regulatory sources said SEC and NSE would adopt any indictment against the directors by applying capital market laws, in addition to any penalty the non-capital market enforcement jurisdictions might have imposed in their indictments.

    “In the event of an indictment by other regulatory agencies, the Exchange will adopt such indictment and will not undertake its own separate investigation,” a management source at the NSE had told The Nation.

    The source noted that companies listed on the Exchange are required to comply with the SEC’s Code of Corporate Governance for Public Companies in Nigeria, which empowers SEC to enforce corporate governance rule, including imposition of penalties on directors for breach of the code.

    Investors have lost more than N3 billion in market value in the latest takeover of a quoted bank by the CBN on the allegation of corporate abuses and mismanagement. Similar takeover of Intercontinental Bank, Bank PHB and Finbank had led to massive losses for investors. CBN’s takeover of allegedly poorly run banks has been a major disruption and source of losses for investors. Within eight days of the takeover of Bank PHB and others, investors in banking stocks had lost N329 billion, which also contributed to the long-running recession at the stock market.

    The Investment and Securities Act (ISA) empowers SEC to seize the assets of persons and institutions that undermine the integrity of the capital market, abuse their offices, provide false or misleading information and act in a way that willfully undermine corporate performance and investors’ trust.

    The ISA empowers SEC to “in furtherance of its role of protecting the integrity of the securities market, seek judicial order to freeze the assets (including bank accounts) of any person whose assets were derived from the violation of this Act, or any securities law or regulation in Nigeria or other jurisdictions”.

    The ISA vested SEC with the responsibilities and powers to “act in the public interest having regard to the protection of investors and the maintenance of fair and orderly markets” as well as to “protect the in0tegrity of the securities market against all forms of abuses including insider dealing”.

    The Act also empowers SEC to “call for information from and inspect, conduct inquiries and audit of securities exchanges, capital market operators, collective investment schemes and all other regulated entities”.

  • ‘Less than 1,000 companies ISO certified’

    Despite the administration’s emphasis on encouraging non-oil exports to diversify the economy, less than 1,000 Nigerian companies have achieved the (International Organisation for Standardisation) ISO 9001: 2008 Certification for Quality Management, a quality management practitioner and National President of the Association of Systems Management Consultants, Mazi Colman Obasi, has said.

    ISO 9001:2008 is accepted worldwide as the standard that defines quality, sets the criteria for a quality management system and provides the necessary framework to improve company efficiency, minimise risk and maximise opportunities.

    Obasi said ISO certification for a company’s products ultimately represents quality management system standard.

    According to him, the certification validates that a company’s quality processes and systems meet specific criteria. He said conformity to international standards helps reassure consumers that products are safe, efficient and good for the environment. International standards also bring technological, economic and societal benefits.

    He said, for instance, that they help to harmonise technical specifications of products and services, making industries more efficient and breaking down barriers to international trade. They also ensure that business operations are as efficient as possible, increase productivity and help companies access new markets.

    Obasi told The Nation that because most firms in Nigeria are yet to get ISO certification hence, they lack standardisation, the situation poses serious challenge for the current administration’s efforts at growing the non-oil economy. He said lack of standardisation due to lack of a national quality infrastructure is also damaging the nation’s economy and brand reputation.

  • Nigeria looses $3.3b to oil and gas Companies 

    Nigeria looses $3.3b to oil and gas Companies 

    Nigeria has lost in the minimum as much as $3.3 billion as result of a series of extraordinary tax breaks granted by the Nigerian government to some of the world’s biggest oil and gas companies.

    The companies include Shell, Total and ENI, which form part of the Nigeria Liquified Natural Gas (NLNG) consortium. The tax break started in 1999. The NLNG Act grants a ten year tax holiday making the company exempt from all corporate tax payments for the first ten years of operation.

    According to ActionAid, the NLNG Act makes the consortium the only company in Nigeria with its own law defining its tax framework, also permanently exempts the consortium from a range of other taxes.

    The Country Director of ActionAid Nigeria, Ojobo Atuluku disclosed this during the launch of the report “Leaking Revenue: How a big tax break to European gas companies has cost Nigeria billions” in Abuja, Tuesday.

    According to Atuluku, “that amount is the equivalent of twice our national education budget and thrice the healthcare budget for 2015.”

    “This calls for serious concern in a country where over 20 million children do not go to school and almost 15 out of one hundred children die before their fifth birthday,” she said.

    ActionAid researches from 2013, she said, “show that the tax incentives cost developing countries at least $138 billion every year, part of which is an estimated amount of $2.9 billion, or a whopping N577 billion Nigeria forfeits every year as a result of tax incentives.” Adding that much of this fund would have gone into social infrastructure developments.

    “There is incontrovertible evidence from researches conducted in many developing nations that corporate profits are soaring, and corporate investments in low income countries had tripled since the 1980s. Yet the corporate tax revenues of the countries where these profits are generated have flat-lined as a percentage of their GDP,” she said.

    This, she said, has resulted to “women and children suffering as healthcare, schools and other key public services are starved of resources,” while suggesting that if many of these tax incentives are presented, we will be able to improve the lives of women and children with improved availability of health, education and other key public services.

    ActionAid and their partners on the Tax Justice platform “want Nigeria and other resource rich developing countries to begin to review their tax incentive policies and Nigeria National Assembly in particular not only to review existing laws on tax incentives but to exercise caution in the proposed amendment to the Companies Income Tax Act 2004.”

    The proposed amendment, Atuluku said, “aims to provide additional tax incentives for gas utilization, mining sectors and businesses located in areas with inadequate infrastructure. It suggests increasing the length of specific sectors’ tax holidays, and offering 10 year tax holidays to companies established where no infrastructure, that is electricity, water, or tarred road, is provided by the government.”

    “As a consequence of this new bill, more foreign companies would be allowed to benefit from large breaks as the three oil companies in this case study did,” she said.

    ActionAid urged the government to publish all tax incentive policies and practices; to systematically count and publish the full cost of tax in incentives through published tax expenditure reports and publish all communications with corporations pertinent to tax incentives.

    ActionAid urged multinational companies to be transparent about their finances, including reporting their profits, sales, assets, number of employees and tax payments to governments in each country whee they operate (including taxes not paid due to tax breaks.

    In his address, Member of the House of Representatives, Herman Lorwase Hembe, representing Vandeikya/Konshisha Federal Constituency, Benue State called on his colleagues at the National Assembly to exercise caution in the deliberation on the proposed amendments to the Corporate Income Tax which seeks to extend the granting of pioneer status to companies from five to ten years, as this cannot be in the interest of the country at a time when the country is in need of revenue.

    Reacting to this development, the federal government it was disclosed has set up a committee to review existing tax incentives to determine those that are not in the interest of the country. This disclosure was made by Mr. Funsho Ayo Fadola, Director, Fiscal Policy, Budget Office at the event.

    Fadola also revealed that the committee will start sitting in Abuja given the urgency and importance the minister of finance attaches to the issue of tax incentives.

  • Companies risk huge fines, delisting on delayed results

    Companies risk huge fines, delisting on delayed results

    Quoted companies with habitual and long delay in the submission of their periodic interim and annual audited reports and accounts would henceforth pay heavy fines and may be delisted as the Nigerian Stock Exchange (NSE) revises its rules on filing of accounts and treatment of default filings.

    Companies with chronic history of delay in submission of quarterly and annual reports could pay as much as N100 million fine in some instances, it was gathered.  Average fines may increase to N20 million; based on recent delayed filings. Fines imposed under the existing rules ranged from N100, 000 to N7.1 million. The highest fine of N7.1 million was imposed on Daar Communications Plc.

    The NSE had come under sharp criticisms over its complicity and negligence on long delays in filing of periodic and annual reports, which allowed many companies to hide poor performance and material information. An oil and gas company reported a cumulative net loss after tax of N240 billion after it delayed its annual report and interim report for first and second quarter until the 11th month of the new financial year. The company merely received a fine of N6.2 million for the delay of the three results.

    Under the new rules currently undergoing review, any late submission of accounts shall attract a fine of N100,000 per day for the first 90 days of non-compliance; N200,000 per day for the next 90 days of non-compliance and N400,000 per day thereafter until the date of submission.

    Besides, any issuer or quoted company shall be liable to pay additional fines of a fine of 50 per cent of its annual listing fee; and N25,000 for every day it remains in default for each instance of non-compliance with any directives of the NSE under the new rules.

    The new rules, which draft company was obtained by The Nation, shall be applicable to all companies and securities on the main and premium boards of the NSE.

    The new rules also highlighted a seeming naming and shaming fine under which defaulted company and the Exchange are required to publish the instances and circumstances of the default in at least two national newspapers and the corporate website.

    The Exchange is also empowered to suspend trading on the shares of a defaulting company, issue a caution on trading on the shares of the company and where the NSE decides that the failure has become incurable based on repeated and sustained delay records, it can take steps to delist the shares of the company.

    Also, no quoted company or issuer of a security shall declare interim dividends, final dividends or bonuses or take any other related corporate action without first preparing and filing audited accounts, which shall form the basis of such declaration or action.

    “Any issuer that violates this provision shall be liable to pay a fine of 5 per cent of the nominal value of the dividends or bonuses, or any other related corporate action, and the applicable fine shall not exceed 100 per cent of the nominal value,” according to the draft rules.

    According to the rules, every company shall file its unaudited quarterly accounts not later than 30 days after the relevant quarter, and publish it in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publications.

    A company that chooses, in addition, to audit its quarterly accounts shall file such accounts not later than 60 days after the relevant quarter, and publish it in at least two national daily newspapers and post it on the company’s website, with the web address disclosed in the newspaper publications.

     

     

     

    Audited year-end accounts must be filed with the Exchange not later than 90 days after the relevant year-end, and sent to all shareholders or published in at least two national daily newspapers and posted on the company’s website with the web address disclosed in the newspaper publications.

    No later than two business days after the deadline for filing accounts has passed, the Exchange shall send a filing deficiency notification to every defaulter and within three calendar days of the date of the filing deficiency notification, the defaulter shall be required to issue a press release, of not less than half a page, in at least two national daily newspapers and posted on the issuer’s website disclosing that the relevant accounts have not been filed by the due date; a detailed explanation of the reasons for the delay; and the anticipated filing date; or its inability to indicate the anticipated filing date, and reasons for the inability to indicate the anticipated filing date.

    A defaulting company is also expected to apply for an extension of time for filing the relevant quarterly or year-end accounts, but this shall not be longer than eight weeks from the due date for the relevant accounts.

    In the event that a company is subject to oversight by a specific primary government regulator, like the Central Bank of Nigeria (CBN) for banks, the Exchange may grant an additional period not exceeding 12 weeks from the due date for the relevant accounts. The company must however produce evidence of filing the relevant accounts with such primary government regulator not later than four weeks before the due date of filing with the Exchange.

    General Counsel and head of regulation, NSE, Ms Tinuade Awe, said the National Council of the Exchange, its highest body, decided on the draft new rules because it discovered that the disclosure requirements as well as the sanctions provided in the initial rules were not stringent enough to deter violations of the Exchange’s listings requirements with regard to financial disclosure.

    She pointed out that the National Council was of the view that in order to ensure greater compliance, additional measures apart from higher financial penalties should be introduced into the provisions relating to financial disclosures.

    She said the new rules would promote adequate investor protection, prompt and sufficient information sharing, accountability, and transparency within the market.

    “These measures are intended to instill greater diligence, prompt, detailed and more responsible disclosure with regard to financial reporting; whilst simultaneously achieving greater deterrence to issuers against repeated late filing of their financial statements,” Awe said.

  • Firm sensitises companies to act

    The Eni Group made up of Nigeria Agip Oil Company (NAOC) Nigeria Agip Energy (NAE) and Agip Energy and Natural Resources (AENR) has promised to sensitise Nigerian companies on the opportunities available to them in the Nigeria Oil and Gas Industry Content Development (NOGICD) Act of 2010.

    The General Manager, District of NAOC, Mr Paola Carnevale made the promise during the Vendor Upgrade, Awareness and Sensitisation Engagement, which is the third session of the Nigerian Content Week organised in Port Harcourt by Eni for indigenous contractors in the oil and gas industry.

    Carnevale said the training programme, which is in collaboration with the Nigerian Content Development Monitoring Board (NCDMB), would help to enlighten indigenous companies on the provisions of the NOGICD Act.

    Other aspects of the training which he said companies would be enlightened on are “the key requirements for successful tendering and contracting process targeted at eliminating Nigerian content failures; Nigerian content measurement and evaluation; Nigerian content opportunities as well as NCDMB monitoring requirements.”

    He also said the initiative, which began  last year, has so far been attended by 250 companies, pointing out that out of this number, 130 promising companies that were unable to scale the Nigerian content pre-qualification participated in the third session of the training.

    In his keynote address, the Executive Secretary of NCDMB, Mr Denzil Kentebe said the NOGICD Act is a “demonstration of government’s emphasis on indigenous contractors’ active participations in the oil and gas sector.”

    Kentebe, who was represented by the Manager, Monitoring and Evaluation of NCDMB, William Arikekpar also stressed on the five major roles which the NOGICD Act conferred on his board, adding that “the focus of Nigerian content is not ‘Nigerianisation’ of the oil and gas sector but ‘domiciliation’ of value-adding activities.

    The NCDMB boss also said his organisation’s Nigerian Oil and Gas Parks Scheme (NOGAPS) programme would create about 10,000 direct jobs from parks design, construction operations and support.

    Continuing, he said the NOGAPS would stimulate manufacturing of equipment packages, components and spares for oil and gas industry and develop local small and medium entrepreneurs (SMEs) and then partner them with original equipment manufacturers to enable them acquire manufacturing expertise.

    While advising local vendors to take advantage of the fairs being organised for SMEs, he also promised researchers and academics specialised in oil and gas research to adopt and create funding mechanisms for research work and clusters, majority of which are in the Niger Delta area.