24 October 2017

Nigeria: Oando Contests Suspension in Court, Faults SEC's Decision

Photo: Premium Times
Nigerian oil company, Oando.

The management of Oando PLC on Tuesday said it had obtained an order of court restraining the Nigerian Stock Exchange, NSE, from placing its shares on technical suspension.

A statement signed by the oil firm's spokesperson, Alero Balogun, and the Chief Compliance Officer, Ayotola Jagun, on Tuesday faulted the decision of the Securities and Exchange Commission, SEC, and the NSE.

The NSE had last week suspended trading on the shares of the oil firm.

The bourse said it was acting on the directive of the SEC.

On Monday, the bourse relaxed its sanction and placed the company's shares on technical suspension, saying trading on its shares will not affect prices.

But Oando in its statement Tuesday evening said that on Monday it obtained an ex-parte order from the Federal High Court granting an interim injunction "... restraining the NSE and any other party working on their behalf from giving effect to the directive of the SEC to implement a technical suspension of the shares of the company pending the hearing and determination of the motion for injunction."

The company also said it obtained a court order restraining the SEC from conducting an audit into its finances pending the hearing of the motion.

The statement said that the notice had been served to the regulatory bodies on Tuesday, adding that the bodies are expected to comply henceforth.

Similarly, the firm said it took its decision because the SEC acted without having concrete evidences, noting that it concluded without thorough investigations.

The statement also condemned the regulatory body's decision to audit expenses in the company's books saying it was not in the best interest of shareholders.

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