The Economic and Financial Crimes Commission (EFCC) has secured the conviction of 21 companies for allegedly operating investment management businesses without valid licences from the Securities and Exchange Commission (SEC). The companies were convicted by Justice Anyalewa Onoja-Alapa of the Federal High Court, Lafia Division, Nasarawa State, following their arraignment by the Abuja Zonal Directorate of the EFCC on September 15 and 16, 2026.
The convicted companies include Ngwuoke Daniels Technologies, Credio Banco Ltd, Digital Company Ltd, Co Request Capital Nigeria Ltd, and Mega Drop Quality Stores Ltd, among others. They were prosecuted on one-count charges bordering on illegal operation of specialised financial institutions, contrary to Section 57(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020. The EFCC alleged that the companies engaged in investment-related activities without obtaining the required SEC licences.
The charge against Mega Drop Quality Stores Limited, for instance, alleged that the company in 2025, in Abuja, engaged in the specialised business of another financial institution by advertising and operating financial investment management without a valid SEC licence. A similar charge was filed against Ngwuoke Daniels Technologies over its alleged operation of financial investment management without a valid SEC licence.
The representatives of the companies were absent when the charges were read in court. Following an application by the prosecution counsel, Nasir Umar, the court entered not-guilty pleas on behalf of the companies before the trial commenced. The prosecution relied on witnesses and documents contained in the proof of evidence, tendering intelligence reports, statements of investigating officers, letters relating to investigation activities, and responses from the Corporate Affairs Commission (CAC) and SEC.
Delivering judgment after the prosecution’s presentations, Justice Onoja-Alapa convicted the 21 companies and sentenced each to a N30 million fine. The court also ordered each company to pay an additional N200,000 for every day it committed the offence. The EFCC Spokesman Dele Oyewale said the prosecution followed actionable intelligence linking the companies to alleged investment fraud and operation without the requisite licences.
According to the Commission, its investigation showed that promoters of the companies were invited for interrogation on December 22, 2022, and again on January 12, 2023, but allegedly failed to honour the invitations. The promoters continued to evade interrogation for about five years, leading to the prosecution of the companies. The EFCC’s investigation and prosecution of the companies aim to curb illegal investment operations and protect investors.
The conviction and sentencing of the 21 companies mark a significant milestone in the EFCC’s efforts to regulate the investment sector and prevent financial crimes. The Commission’s actions demonstrate its commitment to enforcing the law and ensuring that companies operate within the bounds of the law. The N630m fines imposed on the companies serve as a deterrent to others engaging in similar illegal activities.
Key points
- The EFCC secured the conviction of 21 companies for operating investment management businesses without valid licences from the SEC.
- The companies were sentenced to a N30 million fine each and ordered to pay an additional N200,000 for every day they committed the offence.
- The prosecution followed actionable intelligence linking the companies to alleged investment fraud and operation without the requisite licences.
