Nigeria’s SEC to Penalize Companies for Not Publishing Financial Results on Websites

The Securities and Exchange Commission (SEC) has issued a strong warning to all quoted companies in Nigeria to ensure they publish their periodic financial returns on their corporate websites simultaneously with submissions to the SEC and relevant exchanges.

In a circular sent on Tuesday, the SEC stated that sanctions would take effect from January 2025 for companies that fail to comply with this requirement. The Commission raised concerns about companies submitting financial returns to the SEC and other relevant exchanges without making them publicly available on their websites.

Violation of Rules

According to the SEC, this failure violates Rules 39 and 41 of its existing regulations, which aim to ensure transparency and allow investors to make informed decisions based on public financial information.

The SEC stressed that requiring companies to publish their financial information on their websites provides investors with easier and faster access to critical financial data, which supports timely and sound decision-making.

The circular warned: “Effective from January 2025, any public company that fails to comply with the requirement of the referenced Rules in respect of the filing of its periodic returns with the Commission, relevant securities exchanges, and the simultaneous placement of same on its website would be penalised as appropriate.”

Wider Implications

This directive signals the SEC’s commitment to improving transparency and fostering investor confidence in Nigeria’s capital market. By ensuring timely and public access to financial information, the SEC seeks to create a fairer playing field for all market participants.

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Quoted companies are expected to review their disclosure practices and ensure alignment with the SEC’s rules. Investors are also encouraged to use these financial reports available on company websites as part of their due diligence processes when making investment decisions.

Key Information for Investors and Companies

Quoted companies in Nigeria are already required to file annual financial results with the SEC and the Nigerian Exchange Limited (NGX) within 90 days after the end of each financial year. For instance, audited financial statements for 2022 were due by March 31, 2023.

Additionally, companies must publish these financial results in at least two national newspapers at least 21 days before their Annual General Meetings. They are also mandated to share their financial reports on their corporate websites, with the web address included in the newspaper publications.