*Nigeria’s Securities and Exchange Commission approves a fresh set of rules for implementation of tougher and more stringent corporate governance regulations in the country’s Capital market

Emmanuel Akosile | ConsumerConnect

In a bid to ensure that Directors and Management teams of quoted companies uphold full and prompt disclosures, the Nigerian Capital market has said it will commence implementation of a new set of tougher and more stringent corporate governance regulations in the country, effective January 2022.

ConsumerConnect gathered the Nigeria’s Securities and Exchange Commission (SEC) has approved a fresh set of rules after they had gone through the full process of rule-making, including exposure of the draft to stakeholders and approval of the Council of the NGX Regulation Limited, the self-regulatory organisation (SRO) that regulates activities at the Nigerian Exchange (NGX).

Trading floor of the Nigerian Exchange (NGX)

The market regulators stated that the new rules are scheduled to take effect Tuesday, January 4, 2022, which is the first trading day in the New Year.

The implementation is coming three years after the NGX  first drafted the amendments, underlining the scrupulous procedure undertaken by the stakeholders because of the far-reaching impact of the rules on the market, report said.

Tinuade Awe, Chief Executive Officer (CEO) of NGX Regulation Limited, reportedly confirmed that the market would begin implementation of amendments to major rules dealing with Board meetings and general meetings as trading commences 2022.

ConsumerConnect also gathered the new rules has expanded the scope of price sensitive information and also reduced by half the time lag for the report of any Board meeting for consideration of such sensitive information.

All quoted companies, the fresh regulations state, must notify the Exchange, and by extension, the general investing public, in writing of the date and time of Board of Directors’ meeting at which interim or audited financials, recommendation of dividends, bonus or issuance of rights, capital restructuring and other price sensitive information would be considered at least seven business days before such meeting.

Besides, interim or audited financials and capital restructuring are not specified under the current rules due for change early next year, while the notification date currently is 14 days.