Court Fines 21 Companies N30m Each Over Illegal Investment Schemes

The Federal High Court in Nasarawa has convicted 21 companies for operating investment schemes without valid licences from the Securities and Exchange Commission (SEC). Each company was fined N30 million, plus N200,000 for every day it ran the unlicensed business.

Justice Anyalewa Onoja-Alapa found the firms guilty of illegally operating specialised financial businesses, contrary to Section 57(1) of the Banks and Other Financial Institutions Act (BOFIA), 2020. The Economic and Financial Crimes Commission (EFCC) prosecuted the case.

How the case was decided

The companies were registered with the Corporate Affairs Commission (CAC) but advertised and operated financial investment management businesses without the required SEC licences, the EFCC told the court. Charges against some of the firms, including Mega Drop Quality Stores Limited and Ngwuoke Daniels Technologies, alleged the offences occurred in Abuja in 2025.

Representatives of the companies were not in court when the charges were read. EFCC counsel Nasir Umar asked the court to enter not-guilty pleas on their behalf so the trial could proceed. Umar presented witness statements, correspondence from investigators and written responses from the CAC and SEC in support of the commission's case.

The EFCC also told the court it invited the promoters of the companies for questioning on December 22, 2022 and January 12, 2023, but they failed to honour the invitations. That refusal to appear stretched the matter over five years before the prosecution closed its case.

The companies convicted

The convicted firms 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.

The remaining 10 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.

What it means for investors

The judgement restates a simple rule for anyone selling investment or specialised financial services in Nigeria. Obtaining the necessary regulatory licence is a condition for operating or advertising such services to the public. The firms here held CAC registration, but that is not the same as an SEC licence to manage money or sell investment products.

The ruling lands as the SEC pushes sweeping new rules to govern online foreign exchange and Contracts for Difference (CFD) trading in Nigeria. The proposed framework, which is not yet in force, would cover how brokers are licensed, how they advertise and how client money is protected. It could also extend to offshore platforms that target Nigerians through local advertising, influencers or affiliate partnerships.