Investor groups are pushing for harsher penalties after the Nigerian Exchange flagged three companies over insider trading violations.
Shareholders’ associations are calling for stricter enforcement and tougher penalties following insider trading warnings issued by the Nigerian Exchange Limited (NGX).
The exchange recently sanctioned Sterling Financial Holdings Company Plc, Mutual Benefits Insurance Plc and Austin Laz & Company Plc for breaching listing rules linked to insider dealing.
Moses Igbrude, President of the Independent Shareholders Association of Nigeria, said corporate governance rules must be strictly enforced, stressing that sanctions should go beyond warnings.
“When there are breaches, there must be real consequences. Sanctions must serve as a deterrent,” he said.
He also argued that individual executives — not just companies — should be held accountable, suggesting penalties such as fines, suspension, removal from office, or licence withdrawal depending on the severity.
Other shareholder activists echoed similar concerns.
Bisi Bakare of the Pragmatic Shareholders Association described insider trading as a serious betrayal that undermines investor confidence and market fairness. She urged stronger monitoring systems, better disclosure requirements, and closer collaboration between regulators to detect suspicious trades early.
Boniface Okezie of the Progressive Shareholders Association said repeat offenders should face tougher sanctions, especially targeting directors responsible for violations.
Sunny Nwosu of ISAN also praised the NGX action but stressed the need for consistent enforcement to restore trust in Nigeria’s capital market.
Shareholders say firm and transparent action is critical to protect investors, deter abuse, and strengthen confidence in the financial system.
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