Court convicts 21 firms of operating illegal investment schemes, imposes N630m fines

The Federal High Court in Lafia, Nasarawa State, on Monday, convicted 21 companies of operating without licences from the Securities and Exchange Commission (SEC).

​Trial judge Anyalewa Onoja-Alapa sentenced the companies to a N30 million fine each, totalling N630 million, and ordered them “to pay N200 000 for each of the days they had committed the offence.”

​The companies 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 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.

​The Economic and Financial Crimes Commission (EFCC) said in a statement on Monday that it arraigned the companies on 15 and 16 September for illegal operation. It said the act was contrary to Section 57 (1) of the Banks and Other Financial Institutions Act of 2020.

​The section states that “no person shall carry on specialised banking or business of other financial institution in Nigeria other than insurance, pension fund management, collective investment schemes and capital market business as defined respectively in the Insurance Act, the Pension Reform Act and the Investment and Securities Act except it is a company duly incorporated in Nigeria and holds a valid license granted under the provisions of this Act.”

​They were all arraigned on one count each. For instance, the charge against Megadrop Quality Stores Limited and Ngwuoke Daniels Technologies stated that despite being registered with the Corporate Affairs Commission (CAC), they engaged in “financial investment management without valid licence from the SEC.”

​None of the companies appeared in court

EFCC’s statement said none of the companies was in court to take their plea. This prompted the anti-graft agency’s lawyer, Nasir Umar, to go to court to request that a not-guilty plea be entered on behalf of the 21 companies.

​The judge agreed, and the trial commenced.

​EFCC presented witnesses and documents against the companies.

​The documents include “intelligence reports, statements of the investigating officers, letters of investigation activities, response from CAC, and response from SEC in evidence against the companies.”

​The EFCC said its investigations into the companies followed “actionable intelligence available to the Commission that linked them to investment fraud and operating without a license.”

​During the investigations, the EFCC interrogated promoters of the companies in December 2022 and January 2023, but they all ignored the invitation, according to the statement.

​Similarly, for five years, they evaded interrogation, the EFCC added.

​The commission said it invited the promoters of the companies for interrogation on 22 December 2022 and on 12 January 2023, which they all ignored.

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​After the EFCC’s presentation in court, the trial judge convicted and sentenced the companies.

​SEC has warned Nigerians against investing in companies operating without a valid licence.

​In December, it warned the public to avoid an online investment platform known as Glorious Wealth Fund, saying the entity is not registered to operate in the country’s capital market.

​The EFCC has also prosecuted some companies. In June 2025, it arraigned Green Eagles Agribusiness Solutions Limited before the Federal High Court in Lagos.