The Federal High Court in Lafia, Nasarawa State, has convicted and fined 21 companies N30m each for operating financial investment businesses without valid licences from the Securities and Exchange Commission. The court, presided over by Justice Anyalewa Onoja-Alapa, also ordered each of the companies to pay an additional N200,000 for every day they operated in breach of the law.
The companies were prosecuted by the Abuja Zonal Directorate of the Economic and Financial Crimes Commission after intelligence allegedly linked them to investment fraud and the operation of financial businesses without the required regulatory approval. They include Ngwuoke Daniels Technologies, Credio Banco Ltd, and Digital Company Ltd, among others.
The EFCC arraigned the companies separately on September 15 and 16, 2026, on a one-count charge bordering on illegal operation of specialised financial businesses. The alleged offences contravened Section 57(1) of the Banks and Other Financial Institutions Act, 2020, and were punishable under Section 57(5)(a) of the same Act.
When the charges were read, representatives of the companies were absent in court. Following an application by the prosecution counsel, Nasir Umar, the court entered not-guilty pleas on behalf of the companies and proceeded with the trials. The prosecution tendered intelligence reports, statements made by investigating officers, and responses obtained from the Corporate Affairs Commission and the SEC.
After considering the evidence presented by the prosecution, Justice Onoja-Alapa found the companies guilty and sentenced each of them to a N30m fine. The court further ordered each company to pay N200,000 for every day it committed the offence. The prosecution of the companies followed intelligence received by the EFCC linking them to alleged investment fraud.
According to the EFCC, the promoters of the companies had earlier been invited for questioning on December 22, 2022, and again on January 12, 2023, but failed to honour the invitations. The commission said the promoters subsequently evaded interrogation for about five years, eventually prompting the prosecution of the companies.
The EFCC's investigation and subsequent prosecution of the companies aim to curb investment fraud and ensure that financial businesses operate with the required regulatory licences. The commission's efforts are also geared towards protecting the public from unscrupulous financial activities.
Key points
- The Federal High Court in Lafia, Nasarawa State, has fined 21 companies N30m each for operating financial investment businesses without valid licences.
- The companies were prosecuted by the EFCC for alleged investment fraud and operation of financial businesses without regulatory approval.
- The court ordered each company to pay an additional N200,000 for every day it operated in breach of the law.
