By Emmanuel Enitan
The Nigerian Exchange Limited (NGX) has imposed penalties totalling N123.17 million on 15 listed companies for delays in submitting audited and interim financial statements, prompting calls for tougher sanctions against repeat offenders.
The penalties, contained in the latest NGX Regulation (NGX RegCo) X-Compliance Report, comprise N87.30 million for delayed audited accounts and N35.87 million for overdue interim financial statements. The report contains 22 penalty entries across the affected companies. Cite refs={[“turn693471search0″,”turn693471search3″
The development has renewed concerns about corporate disclosure and governance standards in Nigeria’s capital market, particularly whether financial penalties are sufficient to compel listed companies to meet reporting deadlines.
International Energy Insurance Plc attracted the highest penalty of N28.20 million, followed by Caverton Offshore Support Group Plc with N19.20 million and Legend Internet Plc with N16.80 million. The three companies accounted for more than half of the total penalties.
Other companies sanctioned include Oando Plc, fined N10.40 million; Fidelity Bank Plc, N4.20 million; Ecobank Transnational Incorporated, N1.30 million; International Breweries Plc, N1 million; and PZ Cussons Nigeria Plc, N600,000.
Six companies—Caverton Offshore Support Group, NCR (Nigeria), Cornerstone Insurance, Jaiz Bank, Sterling Financial Holdings and Regency Alliance Insurance—appeared under both categories of filing defaults, with combined penalties of N56.10 million. <Cite refs=”turn693471search0″,”turn693471search1″
Reacting to the recurring breaches, capital market stakeholders called for stronger enforcement, arguing that repeated defaults could undermine investor confidence and weaken the effectiveness of disclosure requirements.
Dr David Walter Ogogo, pioneer registrar of the Institute of Capital Market Registrars, recommended referring persistent defaulters to the Securities and Exchange Commission (SEC) for further action, including possible appearances before its Administrative Proceedings Committee.
He argued that financial penalties alone might not prevent repeated breaches, urging closer scrutiny of the companies and their boards.
Similarly, Charles Fakrogha of ECL Asset Management Limited called for direct engagement with the management and boards of defaulting companies, with delisting considered in persistent cases.
Aruna Kebira, chief executive officer of Globalview Securities Limited, stressed that timely disclosure of financial performance was a fundamental obligation of companies seeking to raise capital from the investing public.
However, stakeholders also cautioned that enforcement must remain within the regulatory framework, noting that delisting could make it more difficult for existing shareholders to trade their holdings.
The NGX operates an X-Compliance reporting system to provide investors with information on listed companies’ compliance with disclosure and other listing requirements. The system is intended to promote transparency, market integrity and investor protection. <Cite refs=”turn693471search3”
The latest penalties have intensified the debate over whether stronger financial sanctions, increased board-level accountability and closer regulatory oversight are needed to address persistent delays in corporate financial reporting.
