International Energy Insurance, Caverton and Legend Internet account for more than half of the penalties, as market experts call for tougher sanctions against repeat offenders……
The Nigerian Exchange Limited (NGX) has imposed penalties totalling N123.17 million on 15 companies for failing to submit their audited accounts and interim financial statements within the stipulated deadlines, renewing concerns over persistent disclosure violations in the capital market.
The sanctions, detailed in the Exchange’s latest X-Compliance Report, have sparked fresh calls for stronger regulatory enforcement, with capital market experts questioning whether monetary fines are enough to compel listed companies to comply with reporting requirements.
The latest list includes several companies previously flagged in reports on delayed financial disclosures, raising concerns about the effectiveness of existing penalties in preventing repeated breaches.
According to the report, the N123.17 million in penalties is spread across 22 entries covering audited financial statements and interim financial reports. Of the total, N87.30 million relates to overdue audited accounts, while N35.87 million covers interim filings.
International Energy Insurance attracted the highest penalty at N28.20 million, followed by Caverton Offshore Support Group, with cumulative fines of N19.20 million across both reporting categories, and Legend Internet, which incurred N16.80 million.
Combined, the three companies account for approximately 52.12 per cent of the total penalties imposed in the latest report.
Other companies appearing in both categories include NCR (Nigeria), Cornerstone Insurance, Jaiz Bank, Sterling Financial Holdings and Regency Alliance Insurance. Together, the six companies accumulated N56.10 million in penalties.
The list also includes Oando, which attracted a fine of 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 has intensified questions about whether the financial consequences of late filings are sufficiently severe to discourage future violations.
However, the penalties alone do not establish that the affected companies deliberately withheld information or regarded the fines as an ordinary cost of doing business.
Filing records show uneven compliance
A comparison of filing delays for the 2024 and 2025 audited accounts shows that some companies have improved their reporting timelines, while others have taken longer to submit their financial statements.
Using the NGX’s March 31 deadlines for the respective reporting years, Jaiz Bank reduced its filing delay from approximately 93 days to 45 days. Prestige Assurance also improved, cutting its delay from about 140 days to 45 days.
Regency Alliance Insurance recorded a reduction in its delay from approximately 155 days to 116 days.
However, the trend moved in the opposite direction for some companies. Oando’s filing delay increased from about 65 days to 97 days, while Cornerstone Insurance’s rose from approximately 66 days to 78 days.
The figures suggest that while some companies have made progress in meeting disclosure requirements, compliance remains inconsistent among firms that have previously defaulted.
Earlier reports documented NGX penalties of N76.8 million against nine companies in 2024, while N325.47 million was reported across 59 breaches covering 2025 and 2026.
The report also highlighted the scale of Oando’s penalty relative to its earnings. The company’s N10.40 million fine represents less than 0.01 per cent of its reported N135.76 billion profit before tax for 2025, raising questions about the deterrent effect of financial sanctions on larger companies.
However, the comparison is based on companies that recorded filing defaults and does not establish how many other listed firms have complied because of existing penalties.
Previous reports also documented penalties of N540.37 million against 34 companies and N378 million against 13 insurance firms during the 2024/2025 reporting cycle.
The recurring breaches have therefore kept pressure on regulators to determine whether the current enforcement framework adequately addresses late financial disclosures.
As the debate continues, the central issue for the Exchange and the wider capital market remains how to ensure that listed companies publish their financial results on time, provide investors with reliable information and face consequences that effectively discourage repeated non-compliance.
