The Nigerian Exchange Group (NGX) has imposed 3,792 regulatory sanctions on trading license holders over the past 13 years to curb market infractions and bolster investor confidence. Through its regulatory arm, NGX Regulation Limited (NGX Regco), the organization identified 193 breaches by stockbroking firms, including unauthorized sales of shares and misappropriation of investor funds. Using the BrokerTraX compliance tool, the NGX has streamlined enforcement efforts, which peaked at 608 actions in 2015 and totaled 208 in 2023. The COVID-19 pandemic in 2020 caused a temporary dip in sanctions due to regulatory concessions.
As part of its zero-tolerance policy, the NGX blacklisted 64 dealing clerks and referred 55 firms and individuals to the Economic and Financial Crimes Commission (EFCC) for various allegations, including share misappropriations and unregistered investment schemes. Notably, 37 stockbroking firms were implicated in unauthorized share sales between 2012 and 2024. To enhance transparency, the NGX leveraged the Investors’ Protection Fund and BrokerTraX to resolve and publicize cases, guiding investors on compliant firms and restoring stolen funds in several instances.
The NGX’s sustained efforts have significantly improved compliance rates among stockbrokers, rising from 55% in 2011 to 90% in 2022. The exchange remains committed to reducing rule violations and maintaining market integrity. By blacklisting erring individuals and firms, enforcing penalties, and strengthening monitoring systems, the NGX aims to restore trust in Nigeria’s capital markets while fostering a culture of accountability among its stakeholders.