A Federal High Court in Lafia, Nasarawa State, has convicted 21 companies for operating illegal investment schemes without valid licenses from the Securities and Exchange Commission (SEC). The companies were arraigned by the Abuja Zonal Directorate of the Economic and Financial Crimes Commission (EFCC) on September 15 and 16, 2026, on a one-count charge each. The charges bordered on illegal operation, contrary to Section 57 (1) of the Banks and Other Financial Institutions Act of 2020.
The companies, including Ngwuoke Daniels Technologies, Credio Banco Ltd, and Digital Company Ltd, were found guilty of engaging in specialized business of other financial institutions without valid licenses. The charge against Megadrop Quality Stores Limited reads: "That you, Megadrop Quality Stores Limited, a body corporate, registered with the Corporate Affairs Commission, sometime in 2025, at Abuja within the jurisdiction of the Federal High Court of Nigeria, did engage in specialized business of other financial institution without valid licence."
The representatives of all the companies were absent when the charges were read, and upon application by the prosecution counsel, Nasir Umar, the court entered a "not guilty" plea on behalf of the companies and commenced trial. The prosecution counsel relied on witnesses and documents contained in the proof of evidence to prove his case against the companies. Intelligence reports, statements of investigating officers, letters of investigation activities, and responses from the Corporate Affairs Commission and SEC were tendered in evidence.
Justice Anyalewa Onoja-Alapa convicted and sentenced the companies to N30 million fine each. In addition, she ordered them to pay N200,000 for each day they had committed the offence. The companies were prosecuted following actionable intelligence that linked them to investment fraud and operating without licenses. The EFCC had invited the promoters of the companies for interrogation on December 22, 2022, and January 12, 2023, which they ignored.
Over a period of five years, the companies evaded interrogation by the Commission, prompting their prosecution. The EFCC's investigation revealed that the companies were operating without valid licenses, contrary to the Banks and Other Financial Institutions Act of 2020. The court's decision is a significant milestone in the EFCC's efforts to curb investment fraud and protect Nigerians from unscrupulous financial activities.
The 21 companies convicted include 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.
The EFCC's action is a warning to companies operating in Nigeria to ensure they have the necessary licenses and permits to conduct their businesses. The Commission's efforts aim to protect Nigerians from investment scams and promote a safe and secure financial environment. The court's decision also highlights the importance of collaboration between regulatory agencies to combat financial crimes and protect the country's economy.
Key points
- The Federal High Court convicted 21 companies for operating illegal investment schemes without valid licenses from the Securities and Exchange Commission.
- The companies were sentenced to N30 million fine each and ordered to pay N200,000 for each day they had committed the offence.
- The EFCC's investigation and prosecution of the companies aim to curb investment fraud and protect Nigerians from unscrupulous financial activities.
