NGX RegCo Returns N500 million to Investors amid Crackdown on Infractions

NGX Regulation Limited (NGX RegCo), the independent regulatory arm of Nigerian Exchange Group, says it has recovered over N500 million in restitution to investors.

The disclosure was contained in a statement published on the Nigerian Exchange Limited website on Thursday, reaffirming the organisation’s commitment to investor protection and market integrity.

The recoveries followed the resolution of several investor complaints against market operators, as NGX RegCo continues efforts to address market infractions and strengthen confidence in Nigeria’s capital market.

What they are saying 

NGX RegCo Chief Executive Officer, Olufemi Shobanjo, said the recoveries are part of the organisation’s broader strategy to address long-standing issues within the capital market, including unauthorised trades, disputed proceeds, and account-related discrepancies.

He noted that the interventions also demonstrate the effectiveness of the regulator’s oversight framework in ensuring fairness and transparency across the market.

• “These outcomes reflect our intentional approach to strengthening market integrity and investor protection. Beyond the recoveries, they demonstrate the effectiveness of our oversight framework and our commitment to ensuring that all market participants operate within a fair, transparent, and equitable system.”
• “We remain focused on sustaining investor confidence and supporting the long-term growth of Nigeria’s capital market.”  

The regulator added that investor protection remains central to its mandate as it continues to strengthen market surveillance and compliance measures.

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One of the major recoveries involved the restitution of N326.85 million to an investor following an unauthorised share transaction reported in 2025.

• NGX RegCo said the case was resolved within a defined timeframe, highlighting its structured approach to dispute resolution and enforcement.
• The organisation said the recoveries were supported by strengthened surveillance systems.

Improved post-trade controls and settlement reforms also contributed to the dispute resolution process.

• NGX RegCo added that the rollout of direct cash settlement mechanisms has helped reduce cases of unauthorised transactions.

The regulator stated that these measures are part of ongoing efforts to improve transparency and accountability within the Nigerian capital market.

More Insights 

NGX RegCo has intensified enforcement actions against market infractions in recent months as part of broader efforts to improve compliance within the capital market.

In March, the regulator sanctioned five brokerage firms over allegations of market manipulation and price distortion, imposing cumulative fines and corrective measures.

• The firms were fined a combined N291.29 million following investigations conducted between February and March 2026.
• The infractions included wash trades, self-matching transactions, artificial price formation, and attempts to mislead the market.
• NGX RegCo said the actions violated provisions of the Investments and Securities Act (ISA) 2025.
• In its February X-Compliance Report, the regulator disclosed that 34 listed companies paid N540.37 million in penalties for late submission of financial statements during the 2024/2025 compliance cycle.

The report also highlighted governance and disclosure lapses across sectors, with the insurance industry accounting for the highest share of sanctions.

What you should know

Nigerian Exchange Group Plc recently reported a strong financial performance for the first quarter of 2026, driven largely by increased trading activity and higher transaction fees.

• The Group posted a pre-tax profit of N5.98 billion in Q1 2026, representing a 140.5% increase compared to N2.49 billion recorded in the corresponding period of 2025.
• Revenue rose by 102.5% to N7.22 billion from N3.56 billion in Q1 2025. The growth was supported by higher transaction fees across the Exchange.
• Strong contributions from equity-accounted investees also boosted earnings performance.

The latest performance underscores growing activity in Nigeria’s capital market amid ongoing regulatory and compliance reforms.