The Federal High Court in Nasarawa has convicted and sentenced 21 companies for operating investment schemes without licences from the Securities and Exchange Commission (SEC).
Justice Anyalewa Onoja-Alapa found the companies guilty on a one-count charge of illegal operation, contrary to Section 57(1) of the Banks and Other Financial Institutions Act, 2020.
The companies
The convicted companies 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.
The charge
Part of the charge sheet read: “That you, Megadrop Quality Stores Limited, a body corporate, registered with the Corporate Affairs Commission, sometime in 2025, at Abuja within the jurisdiction of the Federal High Court of Nigeria, did engage in the specialised business of other financial institution without valid licence to wit: advertising and operating a financial investment management without valid licence from the Securities and Exchange Commission; and you thereby committed an offence, contrary to Section 57(1) of the Banks and Other Financial Institutions Act, 2020 and punishable under Section 57(5)(a) of the same Act.”
An identical charge was read against Ngwuoke Daniels Technologies.
Trial in absentia
Representatives of all the companies were absent when the charges were read. Counsel for the Economic and Financial Crimes Commission (EFCC), Nasir Umar, asked the court to enter a “not guilty” plea on their behalf so the trial could begin.
Umar presented witness testimonies and documents to prove the case. He also tendered statements from investigating officers, letters on investigation activities, and responses from the Corporate Affairs Commission (CAC) and the SEC.
Sentence
After the prosecution closed its case, Justice Onoja-Alapa fined each company N30 million. She also ordered each to pay N200,000 for every day the offence was committed.
Ignored invitations
According to the EFCC, the promoters ignored invitations to appear for interrogation on December 22, 2022, and Thursday, January 12, 2023. The agency said the companies evaded interrogation for more than five years.
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