In a bid to improve transparency, the Securities and Exchange Commission in a new policy have directed all public listed companies to henceforth publish their financial statements on their official websites effective January 2025. The agency issued a circular yesterday, warning that non-compliance with the directive would attract stiffer sanctions.
According to the Commission, the directive aims at ensuring seamless public access to financial information, which is critical for making sound investment decisions by would-be investors.
The circular stated, “The Securities and Exchange Commission has observed that public companies file their periodic returns with the Commission and relevant securities exchanges without simultaneously publishing them on their websites.
It added, “This omission is a contravention of Rules 39 and 41 of the Commission’s Rules and Regulations.”
The SEC noted that though public companies routinely make submission of their financial returns to regulatory bodies, however, many fail to make these documents accessible to the investing public via their websites.
The commission reiterated that this lack of accessibility undermines investor confidence and violates disclosure requirements of freedom of information act.
Highlighting the importance of timely disclosures, the SEC stated, “The rationale for the publication of periodic returns on their websites is to provide seamless access by the public to such information, which would serve as a guide to making sound investment decisions.
“It is also important to reiterate in this regard that timely disclosures remain a key component of shareholders’ engagement.”
The SEC warned that “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 the same on its website would be penalised as appropriate.”
The commission revealed that the policy aim to enhance transparency, bolster shareholder engagement, and build investor confidence in the Nigerian capital market.
Meanwhile, the Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, called for urgent action to address the challenges hindering the full potential of Nigeria’s capital market, which he believes is crucial to the country’s goal of achieving a $1tn economy.
