From Peter Moses, Lagos
The NGX Regulation Limited has sanctioned five brokerage firms over market manipulation and price distortion.
The regulator imposed on them cumulative N291.29 million fines and corrective measures to curb unethical trading practices.
According to a formal notification dated March 27, 2026, NGX RegCo informed the Securities and Exchange Commission (SEC) of the disciplinary actions approved by its board.
The notification stated that the sanctions followed investigations and hearings conducted by the Investigation Panel between February and March 2026, which uncovered “recurring patterns of infractions.”
The infractions included wash trades, self-matching transactions, artificial price formation, and broader attempts to mislead the market. These were found to be in breach of provisions under the Investments and Securities Act (ISA) 2025.”
Consequently, the NGX imposed a fine of N91.29 million on CSL Stockbrokers Limited, the highest among the affected firms.
Cowry Securities Limited, Meristem Stockbrokers Limited, SMADAC Securities Limited, and Associated Asset Managers Limited were each fined N50 million.
In addition to financial penalties, all five firms have been mandated to undergo compulsory compliance and market conduct training.
The mandatory compliance training is aimed at correcting internal control weaknesses and improving adherence to regulatory standards within the dealing member community.
The NGX reiterated its commitment to maintaining a fair and transparent market, noting that stricter enforcement is necessary to protect investors and sustain confidence.
NGX Regulation noted that the sanctions were “commensurate to the infractions” and are designed to serve as a deterrent against future violations.
Regulators in Nigeria’s capital market have intensified enforcement following the enactment of the ISA 2025, signaling a shift toward stricter oversight and zero tolerance for infractions.
Recent NGX RegCo’s X-Compliance Report showed that 34 listed companies also paid N540.37 million in penalties for the late submission of financial statements between 2024 and 2025.
Also, NGX RegCo recently imposed N378 million in penalties on 13 listed insurance firms for disclosure breaches.