The Federal High Court in Lafia, Nasarawa State, has convicted 21 companies of operating without licences from the Securities and Exchange Commission (SEC). The companies were sentenced to a N30 million fine each, totalling N630 million, and ordered to pay N200,000 for each day they had committed the offence. The trial judge, Anyalewa Onoja-Alapa, delivered the verdict on Monday.
The companies, including Ngwuoke Daniels Technologies, Credio Banco Ltd, and Digital Company Ltd, were arraigned by the Economic and Financial Crimes Commission (EFCC) on September 15 and 16 for operating illegally. The EFCC stated that the act was contrary to Section 57 (1) of the Banks and Other Financial Institutions Act of 2020. The section stipulates that no person shall carry on specialised banking or business of other financial institution in Nigeria without a valid licence.
The 21 companies, which also include Qnet Nigeria Ltd, Qnet Professional Skill Academy Ltd, and Mastermind Energy & Agro Nigeria Ltd, were all arraigned on one count each. For instance, Megadrop Quality Stores Limited and Ngwuoke Daniels Technologies were charged with engaging in financial investment management without a valid licence from the SEC, despite being registered with the Corporate Affairs Commission (CAC).
None of the companies appeared in court to take their plea, prompting the EFCC's lawyer, Nasir Umar, to request that a not-guilty plea be entered on their behalf. The judge agreed, and the trial commenced. The EFCC presented witnesses and documents, including intelligence reports and statements from investigating officers, as evidence against the companies.
The EFCC said its investigations into the companies followed actionable intelligence that linked them to investment fraud and operating without a licence. During the investigations, the EFCC interrogated promoters of the companies in December 2022 and January 2023, but they all ignored the invitation. The commission said the promoters evaded interrogation for five years.
The SEC has warned Nigerians against investing in companies operating without a valid licence. In December, it warned the public to avoid an online investment platform known as Glorious Wealth Fund, saying the entity is not registered to operate in the country's capital market. The EFCC has also prosecuted some companies, including Green Eagles Agribusiness Solutions Limited, which was arraigned before the Federal High Court in Lagos in June 2025.
The conviction of the 21 companies is a significant milestone in the EFCC's efforts to crack down on illegal investment schemes in Nigeria. The commission's actions aim to protect Nigerians from investment fraud and promote a safe and regulated financial sector. The SEC and EFCC will continue to monitor and regulate the financial sector to prevent such illegal activities.
Key points
- The Federal High Court in Lafia, Nasarawa State, convicted 21 companies of operating without SEC licences and fined them N630m.
- The companies were arraigned by the EFCC for operating illegally, contrary to Section 57 (1) of the Banks and Other Financial Institutions Act of 2020.
- The SEC has warned Nigerians against investing in companies operating without a valid licence, and the EFCC will continue to prosecute such companies.
