The Federal High Court sitting in Lafia, Nasarawa State, has convicted 21 companies for allegedly operating investment and other financial businesses without the required regulatory licences, imposing a N30 million fine on each company.
The convictions followed prosecution by the Economic and Financial Crimes Commission (EFCC) over alleged breaches of Nigeria’s financial-sector licensing requirements.
Justice Anyalewa Onoja-Alapa handed down the convictions, according to a statement issued by the EFCC on Monday.
The companies convicted 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.
Alleged unlicensed investment operations
The companies were arraigned by the Abuja Zonal Directorate of the EFCC on September 15 and 16, 2026, on one-count charges relating to alleged illegal operation of financial businesses without the required regulatory approvals.
The charges were brought under Section 57(1) of the Banks and Other Financial Institutions Act, 2020.
The EFCC alleged that some of the companies engaged in specialised financial activities, including advertising and operating investment-management businesses, without valid licences from the Securities and Exchange Commission (SEC).
In one of the charges, Mega Drop Quality Stores Limited was accused of engaging in the business of an other financial institution without a valid licence, including advertising and operating a financial investment-management business without SEC approval.
The commission alleged that the company, despite being registered with the Corporate Affairs Commission (CAC), carried out the activities without obtaining the necessary regulatory authorisation.
The EFCC said the alleged conduct contravened Section 57(1) of the BOFIA 2020 and was punishable under Section 57(5)(a) of the Act.
A similar allegation was made against Ngwuoke Daniels Technologies, which the EFCC accused of operating and advertising an investment-management business without a valid SEC licence.
The EFCC said 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.
During the proceedings, the prosecution tendered several documents as evidence, including intelligence reports, statements from investigating officers, letters relating to the investigation and responses obtained from the CAC and SEC.
After considering the evidence presented by the prosecution, Justice Onoja-Alapa convicted the companies and imposed a N30 million fine on each of them.
The court also ordered the companies to pay an additional N200,000 for each day they allegedly committed the offences, according to the EFCC.
The EFCC said the prosecution followed actionable intelligence linking the companies to alleged investment fraud and the operation of financial businesses without the necessary licences.
According to the commission, the companies’ promoters were invited for questioning on December 22, 2022, and again on January 12, 2023.
The EFCC said the invitations were ignored.
It added that the handlers of the companies allegedly evaded interrogation for about five years, leading to the eventual prosecution of the companies.
The convictions come amid heightened regulatory scrutiny of investment businesses, digital-asset operators and other financial-service providers operating outside Nigeria’s formal regulatory framework.
The development underscores the increasing enforcement pressure on companies offering investment and financial products to Nigerians without appropriate regulatory approval.
The SEC has in recent months intensified its efforts to bring operators in emerging areas of finance, particularly digital assets and online investment platforms, within its regulatory framework.
The commission has also proposed tougher registration and capital requirements for digital-asset service providers as part of efforts to strengthen investor protection and market oversight.
The latest convictions add to a growing list of enforcement actions against unlicensed financial operators.
Earlier in September, the Federal High Court in Abuja sentenced two Bureau de Change operators to five years’ imprisonment each, with an option of a N2 million fine, for conducting BDC businesses without valid licences from the Central Bank of Nigeria.
The series of actions by the EFCC, SEC and other financial regulators reflects the authorities’ broader push to curb unlicensed financial activities, protect investors and prevent the financial system from being exploited by fraudulent operators.
For investors, the cases also highlight the importance of verifying the regulatory status of companies offering investment, wealth-management, digital-asset or other financial products before committing funds.
