Two of the 17 companies that were recently suspended by the Nigerian Stock Exchange (NSE) for late submission of results have blamed their primary regulators the Central Bank of Nigeria (CBN) and National Insurance Commission (NAICOM) for not submitting their results on time. This excuse is however not tenable. Regulators do not gain anything from delaying results. The defense being put up by the companies, hold very little weight.
Excuses are not tenable
Both companies did not state when they submitted their results to NAICOM and CBN for approval. Were the results presented in the approved format ? Do they contain key information required by regulators. Several firms operating in that same sectors have established a tradition of submitting their results on time, to the point that investors can predict the exact month results are released for several years running. How are these firms able to do so? Results are most often delayed when they are very poor. Companies may have to consider querying staff who do not submit results on time.
How to prevent late submission
Regulators, also need to work together to achieve prompt verification of results. There may be need to form a joint committee comprising all regulators, to screen these results so they can be approved on time. Shareholders of these companies must mount pressure on management to sit up, or they will continue to bear the brunt of fines imposed by regulators.
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