The Nigerian Exchange (NGX) has listed penalties totalling N123.17 million against 15 companies for late submission of audited and interim financial statements, renewing concerns over repeated disclosure breaches among listed firms.
The penalties were contained in the latest NGX RegCo X-Compliance Report, while three capital market operators interviewed by Nairametrics questioned whether financial sanctions alone were sufficient to discourage recurring defaults.
The list includes companies previously featured in Nairametrics’ reports on late financial filings, prompting calls for stronger regulatory intervention, board-level accountability, and, in some cases, delisting.
NGX filing default penalties hit N123.17 million
The latest NGX compliance list contains 22 penalty entries covering audited financial statements and interim financial reports.
Of the N123.17 million total, N87.30 million relates to audited accounts, while N35.87 million covers interim statements.
- International Energy Insurance recorded the largest penalty at N28.20 million, followed by Caverton Offshore Support Group and Legend Internet.
- Caverton accumulated N19.20 million in penalties across both reporting categories, while Legend Internet was fined N16.80 million.
- The three companies accounted for approximately 52.12% of the total penalties.
- Caverton, NCR (Nigeria), Cornerstone Insurance, Jaiz Bank, Sterling Financial Holdings and Regency Alliance Insurance appeared in both categories, with combined fines of N56.10 million.
- Other companies listed include Oando at N10.40 million, Fidelity Bank at N4.20 million, Ecobank Transnational at N1.30 million, International Breweries at N1 million and PZ Cussons at N600,000.
The repeated appearance of some companies raises questions about the effectiveness of financial penalties in securing timely disclosures.
However, the list alone does not establish that any company deliberately withheld its financial statements or treated the penalties as a routine business expense.
Experts demand tougher NGX sanctions:
Dr. David Walter Ogogo, Pioneer Registrar of ICMR, said repeated filing breaches should attract attention beyond the Exchange. He recommended referring persistent defaulters to the Securities and Exchange Commission (SEC) for consideration of additional measures.
Ogogo also suggested that affected companies appear before the SEC’s Administrative Proceedings Committee to strengthen board-level accountability.
- “Sanctions may not be enough. A company may pay a penalty and continue doing what it was doing before.”
- “The NGX can report such companies to the SEC, which can consider additional measures.”
Charles Fakrogha of ECL Asset Management Limited advocated direct engagement with company boards and management, with delisting considered where persistent non-compliance continues.
- “When companies deliberately default and repeatedly pay penalties, the exchange needs to consider other measures. There is no point remaining on a platform when you are not meeting its requirements.”
Aruna Kebira, Chief Executive Officer of Globalview Securities Limited, emphasised that disclosure is a fundamental obligation of listed companies.
- “When you come to the NGX, you must be prepared to dance naked for everyone to see. You must be willing to disclose your company’s performance transparently.”
Kebira cautioned that the NGX must operate within its legal authority and that delisting could make it harder for existing shareholders to sell their investments.
The experts therefore differed on the appropriate enforcement measures but agreed that repeated breaches raise concerns about corporate governance and investor confidence.
Filing delays show mixed progress:
A comparison of filing delays for the 2024 and 2025 audited accounts shows that compliance has improved for some companies but deteriorated for others. The analysis uses the NGX’s March 31 deadlines for the respective reporting years.
- Jaiz Bank, Prestige Assurance and Regency Alliance Insurance reduced their delays, while Oando and Cornerstone Insurance took longer to submit their accounts.
- Jaiz Bank’s delay declined from approximately 93 days to 45 days, while Prestige Assurance improved from about 140 days to 45 days.
- Regency Alliance reduced its delay from approximately 155 days to 116 days.
- Oando’s delay increased from about 65 days to 97 days, while Cornerstone Insurance’s rose from about 66 days to 78 days.
- Nairametrics previously reported NGX penalties of N76.8 million against nine companies in 2024 and N325.47 million across 59 breaches covering 2025 and 2026.
- Oando’s N10.40 million penalty represents less than one-hundredth of 1% of its reported N135.76 billion pre-tax profit for 2025.
However, the comparison covers companies that defaulted and cannot establish how many other listed firms were deterred by existing sanctions.
Previous reports also recorded penalties of N540.37 million against 34 companies and N378 million against 13 insurers during the 2024/2025 cycle. The latest figures reinforce the debate over whether repeated financial penalties are sufficient or whether stronger board accountability and regulatory intervention are needed to improve compliance.