The Federal High Court in Lafia, Nasarawa State, has convicted and sentenced 21 companies for allegedly operating financial investment businesses without valid licences from the Securities and Exchange Commission, SEC. The companies were charged separately with offences contrary to Section 57(1) of the Banks and Other Financial Institutions Act, 2020.
The companies were arraigned by the Abuja Zonal Directorate of the Economic and Financial Crimes Commission, EFCC, on September 15 and 16, 2026. Justice Anyalewa Onoja-Alapa convicted the companies after they were found guilty of operating without licences. The EFCC said the companies were prosecuted after actionable intelligence linked them to investment fraud and operating without licences.
Some of the companies convicted include Ngwuoke Daniels Technologies, Credio Banco Ltd, Digital Company Ltd, Co Request Capital Nigeria Ltd, and Mega Drop Quality Stores Ltd. Others are Atus West Africa Investment Company, Eatrich360 Farms, Matag Agro General Services, Viables X Agribusiness Ltd, and Kwakol Markets Ltd.
The representatives of the companies were absent when the charges were read. Following an application by prosecution counsel, Nasir Umar, the court entered not-guilty pleas on their behalf and commenced trial. The prosecution tendered intelligence reports, statements from investigating officers, letters on investigation activities, as well as responses from the Corporate Affairs Commission (CAC) and the SEC.
One of the charges against Mega Drop Quality Stores Limited stated that the company had engaged in the business of a financial institution without a valid licence, including “advertising and operating a financial investment management without valid licence from the Securities and Exchange Commission.”
Justice Onoja-Alapa subsequently convicted the companies and sentenced each to a N30 million fine. The court also ordered each company to pay N200,000 for each day it had committed the offence. The EFCC said the promoters of the companies evaded interrogation for five years, leading to the prosecution of the companies.
The EFCC had invited the promoters for interrogation on December 22, 2022, and January 12, 2023, but they failed to honour the invitations. The conviction of the 21 companies is a major breakthrough in the EFCC's efforts to crack down on investment fraud and unlicensed financial operations in Nigeria.
Key points
- The Federal High Court in Lafia, Nasarawa State, convicted 21 companies for operating financial investment businesses without valid licences.
- The companies were sentenced to a N30 million fine each and ordered to pay N200,000 for each day they committed the offence.
- The EFCC said the promoters of the companies evaded interrogation for five years, leading to the prosecution of the companies.
