NGX Enforces 3,792 Sanctions Over 13 Years

The Nigerian Exchange Group (NGX), through its regulatory body NGX Regulation Limited (NGX Regco), has implemented 3,792 sanctions on trading license holders between 2011 and 2023, as revealed in the compliance report BrokerTraX.

This initiative, launched to enhance market transparency and investor confidence, recorded 193 rule breaches by stockbroking firms over the period.

Enforcement actions peaked at 608 in 2015 but fell to 82 in 2020 due to regulatory concessions granted during the COVID-19 pandemic. The total number of sanctions highlights NGX’s commitment to maintaining a zero-tolerance policy for market infractions.

Key breaches by 37 stockbroking firms, including unauthorised sales of shares and misappropriation of funds, have led to numerous disciplinary actions. At least 64 individuals, including dealing clerks, have been blacklisted for violations, with cases referred to professional bodies and the Economic and Financial Crimes Commission (EFCC).

Through BrokerTraX, investors now access information on firms with compliance issues, enabling more informed decisions. The report shows improvements in compliance rates, rising from 55 percent in 2011 to 90 percent in 2022, highlighting sustained efforts to restore confidence in the market.

NGX’s Chief Executive Officer (CEO) stated that these actions are aligned with its mission to promote transparency, enforce accountability, and safeguard the integrity of Nigeria’s capital markets.