Section 89 Investments and Securities Act 2025

Section 89 of the Investments and Securities Act 2025 is about System of internal control of public companies. It is under Part IX (Regulation of Securities) of the Act. It provides as follows:

(1) A public company shall establish a system of internal controls over its financial reporting and security of its assets and the board of directors shall ensure the integrity of the company’s internal controls and reporting.

(2) The board of directors of a public company shall report on the effectiveness of the company’s internal control system in its annual report.

(3) In this section, “internal control” means policies, procedures and practices prescribed by management to ensure safety of assets, accuracy of financial records and reports, achievement of corporate objectives and compliance with laws, regulations and applicable corporate governance standards.

(4) A public company which contravenes the provisions of section 88 and this section, is liable to a penalty of not less than N5,000,000 and a further penalty of N50,000 per day for every day the violation continues.