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The Nigerian Exchange Group (NGX) has imposed sanctions on five trading license holders for market manipulation and illegal dealings.
The affected firms are CSL Stockbrokers Limited, Cowry Securities Limited, Meristem Stockbrokers Limited, SMADAC Securities Limited, and Associated Asset Managers Limited.
According to a letter from NGX Regulation Limited (NGX Regco) dated March 27, 2026, sent to the Securities and Exchange Commission (SEC), the firms were found guilty of wash trades, self-matching transactions, artificial price formation, and misleading market activity.
The letter further reads that the Regulation and New Business Committee (RNBC) of NGX Regco, which met on March 16 and 24, 2026, recommended sanctions, which were confirmed by the Board of NGX Regco on March 27, 2026.
Sanctions Imposed:
1. CSL Stockbrokers Limited: ₦91,291,200.24 fine
2. Cowry Securities Limited: ₦50,000,000 fine
3. Meristem Stockbrokers Limited: ₦50,000,000 fine
4. SMADAC Securities Limited: ₦50,000,000 fine
5. Associated Asset Managers Limited: ₦50,000,000 fine
The letter, addressed to SEC DG, Dr. Emomotimi Agama, and signed by NGX Regco’s Ugochi Eke, explained that the sanctions aim to deter similar violations and maintain market integrity.
This move demonstrates NGX Regco’s commitment to enforcing regulations and protecting investors.
It will be recall that both the SEC and NGX has zero tolerance for market infractions.
The NGX RegCo currently uses automated surveillance to identify potential market abuse and enforce compliance with securities laws.
Recent Enforcement (2025–2026): In early 2026, the NGX stepped up its enforcement against price manipulation, including suspending stocks that experienced astronomical increases (e.g., a 772% surge in one month).
Rules and Regulations: Rule 17.13 of the Rulebook (2015) mandates strict disclosure of changes in beneficial ownership of shares, particularly when it hits 5% or more.
