SUSPENSION: C&I Leasing blames CBN for late filing, African Alliance reacts to regulator clampdown

African Alliance Insurance Plc and C&I Leasing have given reasons for the late filing of their financial statements for 2021 full year and first quarter (Q1) 2022 after they were sanctioned for not meeting deadline.

The Nigerian Exchange Regulation Limited (NGX RegCo) suspended trading on African Alliance Insurance and C&I Leasing until both companies release their Audited Financial Statements (AFS) for the year ended 31 December 2021 and Unaudited Financial Statements for the period ended 31 March 2022.

Financial statements for full year 2021 is mandated to be out 90 days after the end of the year, while quarterly result have a deadline of 30 days after the end of each period. Companies are required to halt release of quarter earnings until their yearly financials is out.

The suspension on trades will have a negative impact on their shareholders investment, eliminating possibility of growth. The regulatory sanction could also trigger a sell off among investors, which will further reduce investment value.

In a statement released separately on Monday, African Alliance Insurance said the late submission of the financials was due to the company’s inability to receive the Financial Statements of one of its off-shore subsidiaries.

Read also: CBN blamed, as C&I Leasing, Universal Insurance fail to meet financial reports deadline

African Alliance said it is necessary for consolidation of the Group’s Audited Financial Statements. The statement further reads that upon regulatory approval from National Insurance Commission (NAICOM), it will submit the earnings report.

While for C&I Leasing, the company blamed Central Bank of Nigeria (CBN) for the delay in releasing its financial statements. The firm said the apex bank was still reviewing its earnings report.

“We had envisaged and made requisite plans in ensuring the approvals for filing was obtained before the stipulated regulatory filing deadline. However as at today, we are yet to obtain the approval of CBN to proceed to file.” C&I Leasing statement reads.

Both companies said their Audited Financial Statements (AFS) for the year ended 31 December 2021 and Unaudited Financial Statements for the period ended 31 March 2022 would be out once their industry regulator approved them.

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