The Securities and Exchange Commission (SEC) has announced that starting January 2025, public companies listed on Nigerian exchanges will face penalties if they fail to publish their financial results on their official websites.
The directive, issued in a circular on Tuesday, aims to improve transparency and ensure that critical financial information is easily accessible to investors. The SEC noted that some companies currently file their financial returns with the SEC and relevant exchanges but neglect to publish them online, a violation of its Rules 39 and 41.
The SEC highlighted that publishing financial results on company websites allows investors to access timely information, enabling them to make informed decisions. In its warning, the SEC stated,“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 will be penalised accordingly.
The SEC said it expects all quoted companies to adhere to the following requirements: file their audited financial results with the SEC and the Nigerian Exchange Limited (NGX) within 90 days of the fiscal year-end; publish the results in at least two national newspapers within 21 days before the annual general meeting; and upload financial results to their websites, including the web address in the newspaper publication.
It noted that the directive is part of its broader effort to enhance investor confidence and promote accountability in the capital market. It noted that by ensuring financial disclosures are readily available, the Commission seeks to empower investors and foster a more transparent investment ecosystem.
It encouraged market participants to utilise these online resources to perform due diligence before making investment decisions, while companies are urged to align their practices with regulatory requirements to avoid sanctions.
