EFCC says firms were prosecuted after investigations linked them to alleged unlicensed investment activities…..
The Federal High Court sitting in Lafia, Nasarawa State, has convicted 21 companies for allegedly operating investment-related businesses without the required licences from the Securities and Exchange Commission.
Justice Anyalewa Onoja-Alapa imposed a fine of N30 million on each of the companies following their prosecution by the Economic and Financial Crimes Commission.
The EFCC disclosed the convictions on Monday.
The companies were arraigned by the commission’s Abuja Zonal Directorate on September 15 and 16, 2026, on separate one-count charges relating to the operation of specialised financial businesses without valid licences.
The charges were brought under Section 57(1) of the Banks and Other Financial Institutions Act, 2020.
The affected companies are 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.
What the EFCC told the court
According to the EFCC, some of the companies were alleged to have advertised and operated financial investment management businesses despite not obtaining the necessary SEC approvals.
The charge against Mega Drop Quality Stores Limited, for instance, alleged that the company engaged in the specialised business of another financial institution without a valid licence.
It stated: “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 specialised business of other financial institution without valid licence to wit: advertising and operating a financial investment management without valid licence from the Securities and Exchange Commission; and you thereby committed an offence, contrary to Section 57(1) of the Banks and Other Financial Institutions Act, 2020 and punishable under Section 57(5)(a) of the same Act.”
The EFCC said similar allegations were made against Ngwuoke Daniels Technologies, which it accused of conducting specialised financial activities without the required regulatory authorisation.
The commission said the alleged conduct violated provisions of the BOFIA 2020, which restrict the operation of banking and other specified financial businesses without the appropriate licence.
Court enters pleas after companies fail to appear
The EFCC said representatives of the companies were not present in court when the charges were read.
Following an application by the prosecution counsel, Nasir Umar, the court entered not-guilty pleas on behalf of the companies before proceedings commenced.
To support its case, the prosecution presented intelligence reports, statements from investigating officers, letters relating to investigative activities, responses obtained from the Corporate Affairs Commission and correspondence from the SEC.
After considering the evidence and submissions before the court, Justice Onoja-Alapa convicted the companies and imposed a N30 million fine on each of them.
The court also ordered the companies to pay N200,000 for every day they were found to have committed the offence, according to the EFCC.
Investigation dates back to 2022
The commission said the prosecution followed intelligence linking the companies to alleged investment fraud and the operation of financial businesses without the necessary licences.
According to the EFCC, promoters of the companies were invited for questioning on December 22, 2022, and again on January 12, 2023, but allegedly failed to appear.
The commission said the companies’ handlers continued to evade its invitations for about five years, eventually leading to criminal proceedings against the companies.
The convictions form part of a broader pattern of enforcement against businesses accused of carrying out regulated financial activities without the necessary approvals.
SEC tightens oversight of digital assets
The latest convictions also come amid increased regulatory scrutiny of financial and digital asset businesses in Nigeria.
The SEC has been expanding its regulatory framework for the digital asset sector, including proposed changes to registration fees and minimum capital requirements for operators.
The commission has proposed a N30 million registration fee for certain crypto firms, while capital requirements for digital asset operators could reach N2 billion depending on the category of business.
The enforcement actions underline the increasing emphasis by Nigerian regulators on licensing and compliance for companies operating within the financial services and investment space.
