{"id":40696,"date":"2021-02-25T11:52:13","date_gmt":"2021-02-25T11:52:13","guid":{"rendered":"http:\/\/watchdogplusmedia.com\/?p=40696"},"modified":"2021-02-25T11:52:22","modified_gmt":"2021-02-25T11:52:22","slug":"businessnahco-in-market-abuse-as-it-silently-suspends-ceo-adetokunbo-fagbemi","status":"publish","type":"post","link":"https:\/\/watchdogplusmedia.com\/?p=40696","title":{"rendered":"BUSINESSNAHCO in market abuse as it silently suspends CEO, Adetokunbo Fagbemi"},"content":{"rendered":"\n
\"NAHCO<\/figure>\n\n\n\n

Nigerian Aviation Handling Company (NAHCO) has suspended its Group Managing Director and Chief Executive Officer, Adetokunbo Fagbemi, silently for four weeks without notifying the investing public.<\/p>\n\n\n\n

NAHCO had announced, on January 7, the company would hold its board of directors meeting on January 27 and 28 to discuss its 2020 fourth quarter unaudited financial statements, but didn\u2019t disclose the management will deliberate the suspension of Fagbemi, neither did NAHCO announce her suspension afterwards.<\/p>\n\n\n\n

Why Nahco suspended Fabgemi<\/strong><\/p>\n\n\n\n

NAHCO decided to suspend Fagbemi on January 27 during the board of directors meeting, but the suspension took effect on February 3. She had been suspended for the company\u2019s failure to procure an equipment from a vendor.<\/p>\n\n\n\n

The company was said to have wasted time in dealing with the acquisition, leading to the failure. As the head of the Aviation service firm, the blame was laid on Fagbemi, and the board resolved to put her on suspension with half-salary paid.<\/p>\n\n\n\n

To beat the suspension, she was directed to provide a certified bill of lading for the equipment by February 2, but Fagbemi was unable to produce the bill, leading to the suspension taking effect the next day.<\/p>\n\n\n\n

During Fagbemi\u2019s suspension, Olumuyiwa Olumekun, NAHCO\u2019s Group Executive Director for Corporate Services, took over her position as MD\/CEO.<\/p>\n\n\n\n

The suspension lasted for four weeks following the provision of the certified bill of lading for the equipment by Fagbemi on February 24. The bill of lading provides departure and arrival dates of the equipment.<\/p>\n\n\n\n

Fagbemi\u2019s suspension was only brought to the attention of the investing public, in a statement, after the Board held an emergency meeting on Wednesday, February 24, to reinstate Fagbemi.<\/p>\n\n\n\n

Market abuse<\/strong><\/p>\n\n\n\n

According to Nigerian Stock Exchange (NSE) listing rules, listed companies are compelled to immediately reveal to the investors and the public, all factors or corporate information that might affect investors\u2019 interest (shares), but NAHCO took four weeks before informing the public of Fagbemi\u2019s suspension.<\/p>\n\n\n\n

And the company only revealed the suspension when it lifted it. The NSE listing requirements is placed under market abuse, and the suspension of Fagbemi had a material effect on stock market activity as monitored by Ripples Nigeria.<\/p>\n\n\n\n

After the board agreed to suspend Fagbemi, Nahco\u2019s share price value significantly declined, as the company lost N0.17kobo in share price in one day, to close the market at N2.18kobo on February 1, against the N2.35kobo it opened with.<\/p>\n\n\n\n

Since then, NAHCO\u2019s share price has been fluctuating, but trading below the price (N2.35kobo) it held prior to Fagbemi\u2019s suspension. The share price recorded its biggest decline on February 11, as it plunged to N2.08 per share.<\/p>\n\n\n\n

Between January 27 and February 24, the four weeks period NAHCO kept the information from investing public, NAHCO\u2019s share price lost N0.13kobo, as it closed market at N2.22kobo per share on Wednesday, February 24.<\/p>\n\n\n\n

How will NSE act in such situation<\/strong><\/p>\n\n\n\n

Checks by Ripples Nigeria, showed that any company that fails to inform the NSE of a corporate information or development that has potential to impact on their company\u2019s market performance will be fined of 50% of the annual listing fee.<\/p>\n\n\n\n

\u201cPublication of accounts, notices of Annual General Meetings, closure of register, payment dates, changes in directorate, changes in capital structure, alteration to memorandum and articles of association, changes in general character of the company, all corporate information\/development with potential to impact on the company\u2019s performance etc. without prior written approval of The Exchange shall attract a fine of 50% of the annual listing fee.\u201d NSE stated.<\/p>\n\n\n\n

It is, however, unsure if NSE will hit the hammer on NAHCO, but according to the market authority, such breach of market requirement and directive attract a financial sanction.<\/p>\n","protected":false},"excerpt":{"rendered":"

Nigerian Aviation Handling Company (NAHCO) has suspended its Group Managing Director and Chief Executive Officer, Adetokunbo Fagbemi, silently for four weeks without notifying the investing public. NAHCO had announced, on January 7, the company would hold its board of directors meeting on January 27 and 28 to discuss its 2020 fourth quarter unaudited financial statements, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_mi_skip_tracking":false},"categories":[4],"tags":[],"yoast_head":"\nBUSINESSNAHCO in market abuse as it silently suspends CEO, Adetokunbo Fagbemi » WatchDog Plus Media<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/watchdogplusmedia.com\/?p=40696\" \/>\n<meta name=\"author\" content=\"Odofin\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/watchdogplusmedia.com\/?p=40696#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/watchdogplusmedia.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business\",\"item\":\"https:\/\/watchdogplusmedia.com\/?cat=4\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"BUSINESSNAHCO in market abuse as it silently suspends CEO, Adetokunbo Fagbemi\"}]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"BUSINESSNAHCO in market abuse as it silently suspends CEO, Adetokunbo Fagbemi » WatchDog Plus Media","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/watchdogplusmedia.com\/?p=40696","author":"Odofin","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"BreadcrumbList","@id":"https:\/\/watchdogplusmedia.com\/?p=40696#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/watchdogplusmedia.com\/"},{"@type":"ListItem","position":2,"name":"Business","item":"https:\/\/watchdogplusmedia.com\/?cat=4"},{"@type":"ListItem","position":3,"name":"BUSINESSNAHCO in market abuse as it silently suspends CEO, Adetokunbo Fagbemi"}]}]}},"rttpg_featured_image_url":null,"rttpg_author":{"display_name":"Odofin","author_link":"https:\/\/watchdogplusmedia.com\/?author=2"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/watchdogplusmedia.com\/?cat=4\" rel=\"category\">Business<\/a>","rttpg_excerpt":"Nigerian Aviation Handling Company (NAHCO) has suspended its Group Managing Director and Chief Executive Officer, Adetokunbo Fagbemi, silently for four weeks without notifying the investing public. NAHCO had announced, on January 7, the company would hold its board of directors meeting on January 27 and 28 to discuss its 2020 fourth quarter unaudited financial statements,…","_links":{"self":[{"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=\/wp\/v2\/posts\/40696"}],"collection":[{"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40696"}],"version-history":[{"count":-4,"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=\/wp\/v2\/posts\/40696\/revisions"}],"wp:attachment":[{"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/watchdogplusmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}