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The Nigerian Exchange Limited (NGX) has sanctioned five brokerage firms over market manipulation and price distortion, imposing on them cumulative N291.29 million fines and corrective measures to curb unethical trading practices.

According to a formal notification dated March 27, 2026, NGX Regulation Limited (RegCo) informed the Securities and Exchange Commission (SEC) of the disciplinary actions approved by its board.

Market stakeholders noted that recent regulatory actions show that regulators have shifted from passive oversight to active policing of the market, urging jail terms against market operators found culpable for grave infractions like market manipulations.

The notification seen by Nairametrics stated that the sanctions followed investigations and hearings conducted by the Investigation Panel between February and March 2026, which uncovered “recurring patterns of infractions.”

The NGX reiterated its commitment to maintaining a fair and transparent market, noting that stricter enforcement is necessary to protect investors and sustain confidence.

NGX Regulation noted that the sanctions were “commensurate to the infractions” and are designed to serve as a deterrent against future violations.

However, the NGX stated that it had implemented corrective measures to ensure a fair and orderly market.

Regulators in Nigeria’s capital market have intensified enforcement following the enactment of the ISA 2025, signaling a shift toward stricter oversight and zero tolerance for infractions. The latest sanctions reflect a broader crackdown on market abuse and governance lapses.

Recent NGX RegCo’s X-Compliance Report showed that 34 listed companies also paid N540.37 million in penalties for the late submission of financial statements between 2024 and 2025.

Also, NGX RegCo recently imposed N378 million in penalties on 13 listed insurance firms for disclosure breaches.

The X-Compliance framework has been introduced to enforce transparency and timely reporting.

The SEC has consistently reiterated a zero-tolerance stance on fraud and unethical practices, warning that violators will face tougher penalties.

These latest enforcement actions mirror broader regulatory crackdown aimed at strengthening market integrity under the ISA 2025 framework. The aim is to deter infractions, improve market discipline, and rebuild investor confidence in Nigeria’s capital market.

In a tacit response to the development, Chief Blakey Ijezie, the founder of Okwudili Ijezie & Co., commended the regulators, saying they are living up to expectations in ways never seen in Nigeria’s capital market.

The stakeholders concluded that recent enforcement trends show that “regulators are moving from passive oversight to active policing,” consistent with the SEC’s strengthened mandate under ISA 2025.

Market manipulation was a major trigger of Nigeria’s 2008 stock market crash that wiped out over N8 trillion of investors’ wealth.

By 2007, many emerging and global markets were already in a “bubble stage,” driven by liquidity surges and speculative capital flows rather than fundamentals. The inflated valuations collapsed after foreign investors offloaded their shares.