21 Companies Prosecuted for Running Unlicensed Investment Schemes
- The Federal High Court in Nasarawa convicted 21 companies for operating investment schemes without valid licences from the Securities and Exchange Commission
- The EFCC prosecuted the companies under Section 57(1) of the Banks and Other Financial Institutions Act, 2020, after they evaded interrogation for over five years
- Each convicted company faces a N30 million fine plus N200,000 for every day the unlicensed operation continued
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Federal High Court in Nasarawa has convicted 21 companies for operating investment schemes without the required approval from the Securities and Exchange Commission (SEC).
Justice Anyalewa Onoja-Alapa found the companies guilty of illegally operating specialised financial businesses, contrary to Section 57(1) of the Banks and Other Financial Institutions Act (BOFIA), 2020.
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The Economic and Financial Crimes Commission (EFCC) prosecuted the companies.
Companies found guilty
The convicted 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, BusinessDay reports.
The remaining 10 companies are Atus West Africa Investment Company, Eatrich360 Farms, Matag Agro General Services, Viables X Agribusiness Ltd, Kwakol Markets Ltd, Light Shade International, Value Growth Ltd, B12 Synergy Nigeria Ltd, Phresh Farm Ltd and Omega Pro Global Resources.
How the EFCC built its case
The EFCC told the court that the companies were registered with the Corporate Affairs Commission (CAC) but allegedly advertised and operated financial investment management businesses without obtaining the required SEC licences.
Charges against some of the companies, including Mega Drop Quality Stores Limited and Ngwuoke Daniels Technologies, alleged that the offences occurred in Abuja in 2025.
Representatives of the companies were not present in court when the charges were read. EFCC counsel Nasir Umar asked the court to enter not-guilty pleas on their behalf to allow the trial to proceed.
Umar presented witness statements, correspondence from investigators and written responses from the CAC and SEC in support of the commission's case, Leadership reports.
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The EFCC also told the court that it invited the promoters of the companies for questioning on December 22, 2022, and January 12, 2023, but they failed to honour the invitations.
Penalties handed down
After the prosecution closed its case, Justice Onoja-Alapa convicted the 21 companies and imposed a N30 million fine on each.
The court also ordered each company to pay N200,000 for every day it operated the unlicensed business.
The judgement highlights the requirement for businesses offering investment or specialised financial services in Nigeria to obtain the necessary regulatory licences before operating or advertising such services to the public.
SEC releases new rules for forex trading
Earlier, Legit.ng reported that the Securities and Exchange Commission (SEC) has proposed sweeping new rules to govern online foreign exchange and Contracts for Difference (CFD) trading in Nigeria, covering everything from how brokers are licensed to how they advertise their services and protect client money.
The proposed framework, which is not yet in force, would apply to operators offering these services to Nigerian residents.
It could also extend to offshore platforms that target Nigerians through local advertising, influencers or affiliate partnerships
Source: Legit.ng
