The Nigerian Exchange Ltd. (NGX) has reinstated trading for Mutual Benefits Assurance Plc shares, effective Thursday, March 20, 2025, ending a months-long suspension that had left investors in limbo. This move, announced in the NGX’s weekly report, allows shareholders to once again engage in the buying and selling of the company’s securities on the exchange’s platform.
“We refer to our Market Bulletin dated 8 July 2024,” the NGX stated, recalling the initial suspension, which stemmed from Mutual Benefits Assurance’s failure to submit its financial accounts within the stipulated timeframe. This non-compliance triggered Rule 3.1 of the NGX’s Rules for Filing of Accounts and Treatment of Default Filing, a regulatory mechanism designed to ensure market transparency and investor protection.
Essentially, this rule acts as a safeguard, requiring timely financial disclosures to maintain the integrity of the market. When companies miss these deadlines, they risk suspension, a measure that underscores the NGX’s commitment to accountability. “When an issuer fails to submit its accounts by the expiration of the cure period, the Exchange will issue a “Second Filing Deficiency Notification,” suspend trading in the issuer’s securities, and notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension,” the NGX reiterated.
The lifting of the suspension follows Mutual Benefits Assurance’s submission of its Audited Financial Statements (AFS) for the year ended December 31, 2023, and the outstanding Unaudited Financial Statements for 2024. “Mutual Benefits Assurance Plc has now filed its Audited Financial Statements (AFS) for the year ended 31 December 2023, as well as the outstanding Unaudited Financial Statements for 2024,” the NGX confirmed.
This development aligns with Rule 3.3 of the Default Filing Rules, which dictates, “The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts.” The NGX deemed the submitted accounts compliant with its rules, signaling a return to normalcy for the company’s shareholders.
For investors, this resumption of trading is a significant moment. The suspension likely caused considerable anxiety, as their assets were effectively frozen. Now, they regain the ability to manage their portfolios and respond to market dynamics. This situation underscores the importance of regulatory compliance in maintaining investor confidence.
Simultaneously, the Nigerian Exchange Group Plc reported its 2024 financial results, showcasing a record-breaking profit before tax (PBT) of N13.6 billion, a remarkable 157.3% year-on-year increase. This surge in profitability, driven by robust revenue growth and strategic cost management, reinforces the overall positive trajectory of the Nigerian capital market. Gross earnings also saw a substantial rise, climbing 103.2% to N24.0 billion.
The NGX Group’s performance culminated in a historic dividend payout of N4.4 billion, or N2.00 per share, approved by the Board of Directors. This dividend, the highest in the Group’s history, signals a strong return for investors and reflects the positive sentiment within the exchange.
What I find compelling about these developments is the interplay between regulatory enforcement and market resilience. The NGX’s decisive action in suspending and then reinstating trading demonstrates its commitment to upholding standards. And the strong financial performance of the NGX Group itself serves as a testament to the potential within the Nigerian capital market.
Ultimately, these events highlight the importance of transparency and compliance in fostering a healthy and vibrant investment environment. As investors, it is essential to stay informed about regulatory changes and company performance.
