The Nigerian Exchange Limited (NGX) has officially lifted the trading suspension placed on Mutual Benefits Assurance Plc, allowing the company’s shares to resume trading on the stock market from Thursday, March 20, 2025.
The decision comes nearly eight months after the insurance firm was suspended for failing to meet its financial reporting obligations.
The suspension, which took effect on July 8, 2024, was imposed under the NGX’s Rule 3.1 on the Filing of Accounts and Treatment of Default Filing. The rule states that any publicly listed company that fails to submit its financial statements within the stipulated deadline will receive a Second Filing Deficiency Notification from the Exchange. If the company does not comply within the cure period, the Exchange is required to suspend trading on its securities and notify the Securities and Exchange Commission (SEC) and the general public within 24 hours.
Register for Tekedia Mini-MBA edition 17 (June 9 – Sept 6, 2025) today for early bird discounts. Do annual for access to Blucera.com.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register to become a better CEO or Director with Tekedia CEO & Director Program.
The NGX recalled this action in a statement, emphasizing the regulatory reasons behind the decision. The statement read, “We refer to our Market Bulletin dated 8 July 2024 with Reference Number: NGXREG/IRD/MB35/24/07/08, wherein we notified Trading License Holders and the investing public of the suspension in the trading on the securities of Mutual Benefits Assurance Plc.”
Mutual Benefits Assurance Plc was penalized for not filing its audited financial statements for the year ending December 31, 2023, within the prescribed timeframe. The company also failed to submit its unaudited financial statements for 2024, raising concerns about transparency and compliance.
After months of inactivity on the Exchange, Mutual Benefits Assurance Plc has now submitted its audited financial statements for the 2023 fiscal year, as well as all outstanding unaudited financial reports for 2024. The NGX confirmed that the company had met all necessary requirements and was now in full compliance with the Exchange’s regulations.
Providing an update, the NGX stated, “In view of the company’s submission of its 2023 AFS, and pursuant to Rule 3.3 of the Default Filing Rules, which states that, ‘The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts,’ the Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.”
The lifting of the suspension means that shareholders and investors who had been unable to trade Mutual Benefits Assurance Plc’s shares since July 2024 can now freely buy and sell the company’s stock on the NGX platform. The resumption of trading is expected to generate heightened market activity, as investors react to the company’s return to compliance.
Market analysts believe that the company’s stock could experience volatility in the short term, with some investors eager to offload their shares while others see an opportunity to acquire the stock at potentially undervalued prices. The company’s ability to rebuild investor confidence will depend on its financial health and future corporate governance practices.
NGX Group’s Record Financial Performance
In a related development, the Nigerian Exchange Group Plc has announced record-breaking financial results for the fiscal year ending December 31, 2024. The company posted a profit before tax of N13.6 billion, representing a significant 157.3 percent increase compared to the previous year. The NGX Group attributed this impressive performance to robust revenue expansion, effective cost management, and increased market participation.
Gross earnings soared to N24.0 billion, more than double the N11.8 billion recorded in 2023. The strong financial performance prompted the company’s Board of Directors to approve a final dividend payout of N4.4 billion, translating to N2.00 per share. This represents the highest dividend in the history of the NGX Group, further demonstrating its commitment to delivering shareholder value while maintaining a strong capital position.
The performance of the NGX Group underscores the resilience of the Nigerian capital market, despite ongoing economic challenges. Analysts believe that the record-breaking profit signals increased confidence in the Exchange and could attract further investment into the market.
For Mutual Benefits Assurance Plc, the return to active trading presents an opportunity to rebuild trust among investors and strengthen its financial standing. The company’s ability to maintain regulatory compliance and implement sound corporate governance practices will be key to its long-term stability in the stock market.
With the NGX continuing to enforce strict compliance measures, publicly listed companies are expected to be more diligent in meeting financial reporting deadlines. This regulatory vigilance is aimed at enhancing transparency, protecting investors, and fostering confidence in the Nigerian capital market.