AfriPulse
February 27, (THEWILL) — The Nigerian Exchange Group (NGX Group) has imposed penalties totaling ₦378 million on 13 insurance companies for repeated breaches of financial reporting rules, in a move the exchange described as part of its ongoing effort to enforce market discipline and transparency.
The sanctions, which come after a review of annual and quarterly filings, target insurers that failed to submit timely and accurate audited and unaudited financial statements.
According to NGX, consistent compliance with reporting obligations is essential to maintaining investor confidence and the integrity of Nigeria’s capital market.
Among the heaviest penalties, Mutual Benefits Assurance Plc was fined ₦67.44 million, reflecting delays in filing its 2024 and 2023 audited financial statements, as well as multiple quarterly reports.
African Alliance Insurance Plc was penalized ₦48.6 million for similar reporting lapses, while Universal Insurance Plc incurred fines of ₦47.1 million.
Regency Alliance Insurance Plc faced penalties totaling roughly ₦28 million, and International Energy Insurance Plc was hit with a ₦28.2 million one-off fine for late audited accounts.
Other insurers also felt the impact: Prestige Assurance Plc paid about ₦12.1 million, Cornerstone Insurance Plc ₦10.2 million, and Sovereign Trust Insurance Plc ₦4.4 million.
Collectively, these fines represent the largest enforcement action against the insurance sector in recent compliance cycles, highlighting its persistent struggles with timely disclosure.
Market observers say the penalties send a clear message: NGX is determined to uphold strict corporate governance standards across all listed companies.
The insurance sector accounted for more than 70% of all reporting breaches during this cycle, making it the least compliant segment of the market.
A spokesperson for NGX stated that the fines are intended not just as punitive measures, but as a deterrent to encourage timely, accurate reporting across the board.
Companies that consistently comply with reporting deadlines contribute to a stronger, more transparent market, ultimately boosting investor confidence and supporting sustainable growth in the Nigerian capital market.
NGX has urged all listed companies, particularly insurers, to ensure adherence to reporting guidelines to avoid similar penalties in the future.
The exchange also hinted that enforcement efforts may extend to other sectors with recurrent breaches, signaling a broader crackdown on compliance failures.
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