The Nigerian Exchange Limited (NGX) has sanctioned five brokerage firms for market manipulation and price distortion, imposing cumulative fines of N291.29 million alongside corrective measures to address unethical trading practices.
In a notification dated March 27, 2026, NGX Regulation Limited (RegCo) informed the Securities and Exchange Commission (SEC) that the disciplinary actions were approved by its board following thorough investigations.
The sanctions stem from findings by the Investigation Panel, which conducted hearings between February and March 2026 and uncovered recurring patterns of infractions among the affected firms.
According to the report, the violations included wash trades, self-matching transactions, artificial price formation, and other practices aimed at misleading the market. These actions were found to be in breach of provisions under the Investments and Securities Act (ISA) 2025.
Breakdown of Sanctions
- CSL Stockbrokers Limited received the highest fine of N91.29 million
- Cowry Securities Limited – N50 million
- Meristem Stockbrokers Limited – N50 million
- SMADAC Securities Limited – N50 million
- Associated Asset Managers Limited – N50 million
Beyond financial penalties, all five firms have been directed to undergo mandatory compliance and market conduct training. The initiative is aimed at strengthening internal controls and improving adherence to regulatory standards across the market.
Stronger Regulatory Oversight
Market stakeholders say the development signals a shift from passive oversight to active enforcement, with increasing calls for stricter penalties, including possible jail terms, for severe infractions such as market manipulation.
The NGX reaffirmed its commitment to maintaining a fair, transparent, and orderly market, emphasizing that stricter enforcement is essential to protect investors and sustain market confidence.
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