NGX insider trading warning: Tantalizers Plc and NPF Microfinance Bank sanctioned for share deals during closed periods amid price surges

The Nigerian Exchange Limited (NGX) has issued cautionary letters to Tantalizers Plc and NPF Microfinance Bank Plc over insider dealings in their shares, raising concerns about corporate governance and market transparency.

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The letters, dated February 10 for Tantalizers and February 17 for NPF Microfinance Bank, allege both companies breached listing rules by engaging in share transactions during closed periods times when insiders are prohibited from trading due to potential possession of price-sensitive, non-public information.

NGX regulations require listed companies to submit timely and accurate disclosures to allow investors to make informed decisions.

The regulator said both firms failed to comply with specific provisions of its Listings Rules, prompting the formal warnings.

Shares of Tantalizers have surged 116 per cent year-to-date, closing at N5.40 on Friday, February 20, 2026.

Despite the rally, NGX noted that the company engaged in insider trading during a closed period, breaching Rule 17:18, which restricts directors and insiders from trading ahead of material announcements.

Tantalizers recently announced that its subsidiary, Tantainment Limited, secured a N2 billion equity investment from RGM Materials Solutions Limited, granting the investor a 10 per cent stake.

Proceeds are earmarked for studio equipment, content development, and operational upgrades.

While the investment represents a key milestone in the company’s diversification strategy, the NGX caution letter highlights gaps in internal compliance.

NPF Microfinance Bank has recorded a 69 per cent increase in its share price this year, closing at N6.27 on February 20.

NGX’s February 17 letter noted that the bank similarly engaged in insider dealing during a closed period, also breaching Rule 17:18.

The regulation exists to prevent insiders from gaining an unfair advantage over the investing public.

While cautionary letters stop short of suspension or heavier penalties, they formally warn companies and alert investors to regulatory breaches.

Both cases underscore the need for robust compliance systems within listed entities, particularly during periods of rapid stock price growth and corporate transformation.

Market participants are expected to scrutinise both firms’ governance practices and observe how they restore investor confidence.

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NGX’s action reaffirms its commitment to maintaining market integrity and preventing any unfair advantage from insider knowledge.