LAGOS — The Nigerian Exchange Limited (NGX) has ramped up its enforcement of post-listing obligations, imposing a staggering N540.37 million in penalties on 34 listed companies for failing to file their financial statements on time. According to the latest X-Compliance Report from NGX Regulation Limited (NGX RegCo), the sanctions cover defaults in both Audited Annual Financial Statements (AFS) and Interim Unaudited Financial Statements (UFS) for the 2024 and 2025 cycles.
The data reveals a deepening divide between compliant blue-chip firms and sectors struggling with “governance weaknesses,” with the insurance and oil & gas sectors emerging as the primary offenders.
Sector Breakdown: Where the Penalties Fell
The report highlights a heavy concentration of defaults in specific industries, suggesting systemic reporting challenges:
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Insurance Sector (The Lead Defaulter): 13 insurance firms collectively paid N378.7 million, accounting for 70.1% of total penalties. Analysts point to “persistent reporting delays and governance weaknesses” as the root cause.
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Oil & Gas (Repeated Breaches): Three entities led by Oando Plc and Conoil Plc accounted for N110.2 million (20.4%). Oando alone paid N95 million, nearly triple Conoil’s sanctions, reflecting multiple filing breaches across 2023, 2024, and 2025.
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Banking & Financial Services: Seven firms recorded N96.3 million in fines, though most were linked to minor interim delays rather than the multi-year defaults seen in other sectors.
The High Cost of Silence
The NGX Rulebook mandates that companies file audited results within 90 days of year-end and quarterly results within 30 days. Failure to do so triggers a “Cure Period,” after which monetary penalties accrue daily.
Top Individual Defaulters by Fine Amount: | Company | Sector | Total Fine (Approx.) | Key Breach | | :— | :— | :— | :— | | Oando Plc | Oil & Gas | N95.0 Million | Multi-year late audited filings | | Mutual Benefits Assurance | Insurance | N67.4 Million | Late 2024 Audited Statements | | African Alliance Insurance| Insurance | N48.6 Million | Reporting delays | | Universal Insurance | Insurance | N47.1 Million | Reporting delays | | Conoil Plc | Oil & Gas | N27.4 Million | Late 2023/2024 filings |
Expert Analysis: “Buying Time” for Poor Performance
Market analysts argue that strict enforcement is critical for maintaining investor confidence. Mr. Aruna Kebira, CEO of Globalview Capital Limited, emphasized that fines serve as a deterrence, not a revenue target.
However, Chief Blakey Ijezie, a chartered accountant, offered a blunter assessment:
“Companies that delay financial statements are buying time because they may not have good results to celebrate. They fear releasing the results due to the impact it may have on the share price.”
