A closed period is a timeframe during which company insiders are prohibited from trading shares because they may have access to material, non-public information, usually financial results.
In Nigeria, this is mandated by the Issuers’ Rules of the Nigerian Exchange Limited (NGX) to prevent insider trading and ensure a level playing field.
In its latest filing, Aradel Holdings Plc disclosed that its closed period commenced on 1 January 2026 ahead of the consideration of its Q4 2025 unaudited results at a Board meeting scheduled for 28 January 2026. Importantly, the closed period does not end on the board meeting date. It will only lapse 24 hours after both the Q4 unaudited results and the 2025 audited financial statements are filed and released on the NGX Issuers’ Portal.
The reference to “24 hours” does not mean the closed period lasts just one day. Rather, it is a mandatory cool-off window after public disclosure, allowing the market time to absorb the information before insiders may resume trading.
What Is a Closed Period?
A closed period is a defined timeframe during which company insiders are prohibited from trading in the company’s shares because they may have access to material, non-public information, typically financial results.
In Nigeria, closed periods are governed by the Issuers’ Rules of the Nigerian Exchange Limited (NGX) and are a core element of market-integrity and investor-protection rules.
Why Companies Declare a Closed Period
Closed periods are declared when a listed company is preparing, reviewing, or approving unreleased financial statements.
The objectives are to:
• prevent insider trading,
• ensure equal access to price-sensitive information,
• preserve confidence in the fairness of the capital market.
How the Closed Period Works — The Aradel Example
In its notice, Aradel Holdings Plc disclosed that:
• Its Board will meet on Wednesday, 28 January 2026 to consider its Q4 2025 unaudited financial statements.
• The company’s closed period commenced on Thursday, 1 January 2026.
• The closed period will end 24 hours after the filing and release of:
• the Q4 2025 unaudited financial statements, and
• the 2025 audited financial statements
on the NGX Issuers’ Portal.
Key Clarification: The Closed Period Is Not 24 Hours Long
The 24-hour reference defines when the closed period ends, not how long it lasts.
For Aradel:
• Start: 1 January 2026
• End: 24 hours after both the Q4 unaudited and full-year audited accounts are publicly released
The extra 24 hours is a cool-off window to allow the market to absorb the information before insiders can trade again.
Who Is Restricted?
The restriction applies to:
• directors and senior management,
• employees with access to unpublished financial data,
• advisers and consultants with insider knowledge,
• connected persons, including spouses and entities controlled by insiders.
Trading is prohibited directly or indirectly, including via nominees.
Investment strategies during a closed period
For non-insider investors, trading is unrestricted. Strategies commonly adopted include:
• Results-anticipation positioning, based on historical trends and sector dynamics.
• Gradual accumulation during periods of thinner liquidity, typical when insiders are absent.
• Risk management, including trimming exposure ahead of earnings uncertainty.
• Event-driven positioning, focusing on post-results price reactions rather than speculation.
• Fundamental review, reassessing valuation metrics ahead of fresh numbers.
