How NSE suspends 19 companies in four years

The Nigerian Stock Exchange (NSE) has suspended 19 companies in four years over failure to comply with the post-listing requirement of the bourse.

The NSE on September 1, 2020, suspended six companies as they failed to submit December 31, 2019, audited result and accounts.

The six companies are Medview Airline Plc, Capital Oil Plc, FTN Cocoa Processors Plc, Niger Insurance Plc, R.T. Briscoe (Nigeria) Plc and Union Dicon Salt Plc.

Although, Medview Airline in 2019 said it suspended operations because all its planes were under maintenance.

The airline also referred to a media report on the suspension as “misleading and tantamount to demarketing”.

According to a disclosure it made on the NSE, the airline, however, said it did not inform the regulatory authority (NCAA), “or other any agency, nor the press that its operations were suspended.

“At this time of the year, all those concerned or involved know that Medview will concentrate her entire operations in the inbound airlift of Hajj Pilgrims from Saudi Arabia to Nigeria,” it said.

The airline said its B737-500 (5N-BQM) aircraft developed a technical fault en route Abuja a few days ago “that requires engine replacement”.

It said the engine has been procured and is being mounted to commence operation next week.

The disclosure, which was signed by the company’ secretary, Abdullahi Abdullahi, said two (5N-MAB and 5N-MAA), out of the three B737 aircraft in its domestic fleet was sent for C- Check at approved MRO in Estonia, Europe, and Aero-Contractors in Nigeria.

It said the works are already at an advanced stage, “up to 85 per cent and the aircraft is expected to enter service on its domestic route soon”.

“In the last 12 years of operation as Hajj carrier and domestic operator, Medview Airline is profoundly known and widely recognised for its safety consciousness which cannot be compromised.

“Our airline is ever committed to its corporate value, which is the ability to succeed in providing the desired services for customers’ satisfaction and return on investment to shareholders,” it said.

The shares of the six under listed companies were suspended from trading via the facilities of The Exchange, effective from last Tuesday having failed to file their Audited Financial Statement for the year ended December 31, 2019

The Exchange explained that “In accordance with the rules set forth above, the suspension of trading in the shares of the above-listed companies will only be lifted upon the submission of the relevant accounts and provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.”

The management of the NSE on July 2, 2019, suspended Goldlink Insurance Plc, Resort Saving & Loans Plc, Standard Alliance Insurance Plc.

However, on July October 2018, the NSE suspended Multi-Trex Integrated Foods Plc, International Energy Insurance Plc, Unic Diversified Holdings Plc, DN Tyre & Rubber Plc and Staco Insurance Plc for the late failing of December 31, 2018 results.

Findings have, however, revealed that the bourse on October 3, 2017, suspended Nigerian German Chemical Plc, Roads Nigeria Plc, Aso Savings & Loans Plc, Evans Medical Plc and Union Homes Savings & Loans plc.

Our correspondent gathered that most companies immediately after the suspension always comply and submit audited results to the NSE, while some resolved with shareholders to delist from the bourse.

Further checks, also, showed that Evans Medical, Nigerian German Chemicals and Roads Nigeria are currently undergoing delisting process from the NSE.

On the contrary, Aso Savings & Loans, FTN Cocoa Processors, Goldlink Insurance, International Energy Insurance, Union Dicon Salt, Union Homes Savings & Loans Plc, DN Tyre & Rubber and Multi-Trex Integrated Foods Plc were approved by the National Council of the NSE to undergo restructuring status subject to the filing of quarterly compliance report.