Unlicensed Investment Operations: 21 Companies Fined N30 Million Each by Federal High Court
The Federal High Court in Lafia, Nasarawa State, has delivered a significant judgment, convicting and sentencing 21 companies for engaging in financial investment operations without the requisite licences from the Securities and Exchange Commission (SEC). This ruling underscores the stringent regulatory environment governing financial services in Nigeria and serves as a stark warning to entities operating outside legal frameworks.
Presided over by Justice Anyalewa Onoja-Alapa, the court’s decision followed the arraignment of the companies by the Abuja Zonal Directorate of the Economic and Financial Crimes Commission (EFCC) on September 15 and 16, 2026. The companies faced charges under Section 57(1) of the Banks and Other Financial Institutions Act, 2020, which prohibits operating as a financial institution without proper authorisation.
The convicted entities 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, Mastermind Energy & Agro Nigeria Ltd, 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.
Representatives of these companies were notably absent during the proceedings. Upon an application by prosecution counsel, Nasir Umar, the court entered not-guilty pleas on their behalf and proceeded with the trial. The prosecution presented substantial evidence, including intelligence reports, statements from investigating officers, correspondence detailing investigation activities, and crucial responses from the Corporate Affairs Commission (CAC) and the SEC.
A key charge highlighted in the proceedings against Mega Drop Quality Stores Limited detailed its engagement in financial institution business, including the advertisement and operation of financial investment management, without a valid SEC licence.
Justice Onoja-Alapa imposed a substantial penalty on each convicted company, ordering a fine of N30 million. Furthermore, the court mandated an additional payment of N200,000 for each day the offence was committed, escalating the financial repercussions for non-compliance.
The EFCC stated that the prosecution was initiated following actionable intelligence linking the companies to investment fraud and unlicensed operations. The Commission revealed that promoters of these companies were invited for interrogation on December 22, 2022, and January 12, 2023, but failed to appear. This evasion of investigation for a period of five years ultimately led to the legal action against the corporate entities. This judgment reinforces the critical need for due diligence and regulatory adherence for all businesses involved in financial services and investment management in Nigeria.
