NGX fines 15 companies N123.17 million for late filings, experts seek tougher sanctions

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.

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.

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.

Charles Fakrogha of ECL Asset Management Limited advocated direct engagement with company boards and management, with delisting considered where persistent non-compliance continues.

Aruna Kebira, Chief Executive Officer of Globalview Securities Limited, emphasised that disclosure is a fundamental obligation of listed companies.

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.

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.

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.

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