Oando, Caverton, others face NGX N123m penalties as experts question deterrent effect of fines

The Nigerian Exchange (NGX) has imposed penalties totalling N123.17 million on 15 companies for failing to submit their audited and interim financial statements within prescribed deadlines, prompting capital market experts to call for tougher sanctions, including possible delisting of persistent offenders. The penalties, contained in the latest NGX RegCo X-Compliance Report, have renewed concerns about corporate governance, regulatory enforcement and the effectiveness of financial sanctions in compelling listed companies to meet their disclosure obligations.

Three capital market experts interviewed by Nairametrics argued that repeated filing defaults require stronger regulatory intervention, greater board-level accountability and, where necessary, additional disciplinary measures, reports Nairametrics. The latest compliance report contains 22 penalty entries covering defaults involving audited financial statements and interim financial reports. Of the N123.17 million in penalties, N87.30 million relates to audited accounts, while N35.87 million covers interim financial statements. International Energy Insurance attracted the highest penalty of N28.20 million, followed by Caverton Offshore Support Group, which accumulated N19.20 million across both reporting categories, and Legend Internet, with N16.80 million. The three companies accounted for approximately 52.12 per cent of the total penalties. Other companies appearing in both reporting categories include Caverton, NCR (Nigeria), Cornerstone Insurance, Jaiz Bank, Sterling Financial Holdings and Regency Alliance Insurance. Their combined penalties amounted to N56.10 million. Additional penalties include N10.40 million against Oando, N4.20 million against Fidelity Bank, N1.30 million against Ecobank Transnational, N1 million against International Breweries and N600,000 against PZ Cussons. The repeated appearance of some companies on compliance lists has raised questions about whether the existing financial penalties are sufficiently deterrent to prevent further breaches. However, the report does not, by itself, establish that the affected companies deliberately withheld their financial statements or regarded the penalties as routine business expenses. Experts demand stronger enforcement Dr David Walter Ogogo, pioneer registrar of the Institute of Capital Market Registrars (ICMR), said persistent filing defaults should attract regulatory attention beyond the Nigerian Exchange. He recommended that the NGX refer repeat offenders to the Securities and Exchange Commission (SEC) for consideration of additional sanctions. Ogogo also proposed that affected companies be summoned before the SEC’s Administrative Proceedings Committee to strengthen accountability at board level. “Sanctions may not be enough. A company may pay a penalty and continue doing what it was doing before,” he said. “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 the boards and management teams of defaulting companies, 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,” Fakrogha said. Aruna Kebira, chief executive officer of Globalview Securities Limited, stressed that timely disclosure of corporate performance was a fundamental obligation of companies seeking to raise capital from the investing public. “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,” he said. Kebira, however, cautioned that the Exchange must operate within its legal authority, noting that delisting could make it more difficult for existing shareholders to sell their investments. Although the experts differed on the appropriate enforcement measures, they agreed that repeated filing breaches raised concerns about corporate governance and investor confidence. Filing delays show mixed progress A comparison of filing delays involving the 2024 and 2025 audited accounts shows that compliance improved for some companies but deteriorated for others. The analysis uses the NGX’s March 31 deadlines for the respective reporting years. Jaiz Bank reduced its filing delay from approximately 93 days to 45 days, while Prestige Assurance improved from about 140 days to 45 days. Regency Alliance Insurance also reduced its delay, from approximately 155 days to 116 days. However, 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 mixed results suggest that although some companies have improved their reporting timelines, others continue to struggle to meet disclosure deadlines. 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. Previous reports also documented penalties of N540.37 million against 34 companies and N378 million against 13 insurers during the 2024/2025 cycle. The figures highlight the continuing debate over whether monetary penalties alone can secure compliance or whether regulators need to apply additional measures to persistent offenders. Oando penalty raises questions about deterrence Oando’s N10.40 million penalty has also drawn attention when compared with the company’s reported N135.76 billion pre-tax profit for 2025. The fine represents approximately 0.008 per cent of that reported profit, raising questions about whether the financial consequences of late filing are proportionate to the scale of some listed companies. However, the comparison does not establish that the penalty failed to deter the company or that other firms were unaffected by existing sanctions. For investors, timely financial reporting is essential for assessing corporate performance, comparing investment opportunities and making informed decisions. Persistent delays can leave shareholders and prospective investors without current information needed to evaluate a company’s financial position and prospects. The latest penalties have therefore renewed calls for a more effective enforcement framework that combines proportionate financial sanctions with board-level accountability and further regulatory action against companies that repeatedly violate disclosure requirements. 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