FEDERAL HIGH COURT CONVICTS 21 COMPANIES OVER UNLICENSED INVESTMENT OPERATIONS, IMPOSES N30M FINE EACH

The Federal High Court sitting in Lafia, Nasarawa State, has convicted 21 companies for allegedly operating investment businesses without valid licences from the Securities and Exchange Commission (SEC).

Justice Anyalewa Onoja-Alapa delivered the convictions following the prosecution of the companies by the Abuja Zonal Directorate of the Economic and Financial Crimes Commission (EFCC).

The companies were separately arraigned on September 15 and 16, 2026, on one-count charges relating to the operation of specialised financial businesses without the required regulatory licences.

According to the EFCC, the offences contravened Section 57(1) of the Banks and Other Financial Institutions Act, 2020, and are punishable under Section 57(5)(a) of the same law.

The companies convicted by the court are Ngwuoke Daniels Technologies, Credio Banco Ltd, Digital Company Ltd, Co Request Capital Nigeria Ltd, Mega Drop Quality Stores Ltd, Norland Global Ltd, Oxford International, Creative Agriculture Cooperative, Qnet Nigeria Ltd, Qnet Professional Skill Academy Ltd and Mastermind Energy & Agro Nigeria Ltd.

Others are Atus West Africa Investment Company, Eatrich360 Farms, Matag Agro General Services, Viables X Agribusiness Ltd, Kwakol Markets Ltd, Light Shade International Ltd, Value Growth Ltd, B12 Synergy Nigeria Ltd, Phresh Farm Ltd and Omega Pro Global Resources.

One of the charges, filed against Mega Drop Quality Stores Limited, alleged that the company operated a financial investment management business in Abuja in 2025 without a valid SEC licence.

The charge also alleged that the company advertised and operated the investment business without the required regulatory approval.

A similar charge was brought against Ngwuoke Daniels Technologies, with the EFCC alleging that the company operated a financial investment management business without a valid SEC licence.

The representatives of the companies were reportedly absent when the charges were read in court. Following an application by EFCC prosecutor Nasir Umar, the court entered not-guilty pleas on behalf of the companies and proceeded with the trial.

During the proceedings, the prosecution presented witnesses and documents contained in its proof of evidence in support of the cases against the companies.

The EFCC also tendered intelligence reports, statements from investigating officers, letters relating to its investigation and responses obtained from the Corporate Affairs Commission (CAC) and the Securities and Exchange Commission.

After considering the evidence presented by the prosecution, Justice Onoja-Alapa convicted the 21 companies and imposed a fine of N30 million on each company.

The court further ordered each of the convicted companies to pay an additional N200,000 for every day it was found to have committed the offence.

The EFCC said the prosecutions followed actionable intelligence that allegedly linked the companies to investment fraud and the operation of businesses without the required licences.

According to the commission, its investigation showed that promoters of the companies had been invited for questioning on December 22, 2022, and January 12, 2023, but allegedly failed to honour the invitations.

The EFCC said the continued failure of the promoters to appear for questioning contributed to the decision to prosecute the companies.

The convictions highlight the regulatory requirement for companies engaging in investment and other specialised financial activities to obtain the appropriate licences before commencing operations.

Street News Reporters reports that the court’s ruling means each of the 21 companies is liable to the N30 million fine as well as the additional daily penalty ordered by the court, based on the period applicable to each offence.