The Federal High Court in Lafia, Nasarawa State, has found 21 companies guilty of conducting financial investment operations without the necessary licenses from the Securities and Exchange Commission (SEC). The convictions were handed down by Justice Anyalewa Onoja-Alapa after the companies were arraigned by the Economic and Financial Crimes Commission (EFCC) on September 15 and 16, 2026.

The companies faced charges under Section 57(1) of the Banks and Other Financial Institutions Act, 2020. Notable firms among those convicted include Ngwuoke Daniels Technologies, Credio Banco Ltd, Digital Company Ltd, and Mega Drop Quality Stores Ltd, among others. A total of 21 companies were implicated in the case, which highlighted serious regulatory breaches in the financial sector.

During the court proceedings, the representatives of the companies were absent when the charges were read. Despite their absence, the court entered not-guilty pleas on their behalf and proceeded with the trial. The prosecution, led by Nasir Umar, presented various pieces of evidence, including intelligence reports, statements from investigating officers, and letters from the Corporate Affairs Commission (CAC) and SEC.

One of the significant charges against Mega Drop Quality Stores Limited detailed that the company had been involved in financial institution activities without a valid license, specifically mentioning its operations in financial investment management.

After reviewing the evidence, Justice Onoja-Alapa convicted all 21 companies and imposed a fine of N30 million on each. Additionally, the court mandated that each company pay N200,000 for each day it had engaged in the unlawful activities.

The EFCC stated that the prosecution followed actionable intelligence that linked these companies to investment fraud and unlicensed operations. The commission had previously invited the promoters of these firms for questioning on December 22, 2022, and January 12, 2023, but they failed to appear. The EFCC noted that the promoters had evaded interrogation for five years, which ultimately led to the legal actions taken against them.

This case underscores the importance of regulatory compliance in Nigeria's financial sector, as the EFCC continues to crack down on unlicensed investment operations that pose risks to investors and the economy.