The Nigerian Exchange Group (NGX Group), using its regulatory branch called NGX Regulation Limited (NGX Regco), has given 3,792 penalties to people with trading licenses from 2011 to 2023. These penalties happened because of different wrongdoings, like selling investors’ shares without permission and misappropriation of funds, as detailed in the BrokerTraX compliance report.
The highest number of penalties was in 2015 with 608, but in 2020, there were only 82 because the rules were relaxed during the COVID-19 crisis. In other years, the number of penalties changed, with 2023 having 208.
Between 2012 and 2024, 37 stockbroking firms were involved in unauthorized sales of shares, with cases largely resolved or addressed via the Investors’ Protection Fund (IPF). Additionally, 64 dealing clerks have been blacklisted for unethical practices, and 15 firms and 40 individuals were referred to the Economic and Financial Crimes Commission (EFCC) for investigation.
The NGX’s zero-tolerance policy and the introduction of BrokerTraX have led to improved compliance, with stockbroker adherence to regulatory requirements rising from 55% in 2011 to 90% in 2022.
