In a significant ruling, the Federal High Court in Nasarawa has convicted 21 companies for illegally operating investment schemes without the necessary licenses from the Securities and Exchange Commission (SEC). Each company has been fined N30 million and an additional N200,000 for every day they conducted business without the required approval.

The Economic and Financial Crimes Commission (EFCC) spearheaded the prosecution under Section 57(1) of the Banks and Other Financial Institutions Act (BOFIA), 2020. The court found that these companies had evaded scrutiny for over five years, engaging in unlicensed financial operations that contravened established regulations.

Justice Anyalewa Onoja-Alapa presided over the case, which highlighted the importance of regulatory compliance for businesses in the financial sector. The convicted companies include notable names such as Ngwuoke Daniels Technologies, Credio Banco Ltd, and Mega Drop Quality Stores Ltd, among others. The full list of companies found guilty also features Qnet Nigeria Ltd, Atus West Africa Investment Company, and Omega Pro Global Resources.

The EFCC presented a compelling case, detailing how these companies, despite being registered with the Corporate Affairs Commission (CAC), operated financial investment management businesses without obtaining the required licenses from the SEC. The court was informed that some of the offenses occurred in Abuja as recently as 2025.

Representatives from the companies did not attend the court proceedings, leading EFCC counsel Nasir Umar to request that not-guilty pleas be entered on their behalf to facilitate the trial. The EFCC supported its case with witness statements and correspondence from both the CAC and SEC, demonstrating a clear violation of financial regulations.

The court's decision serves as a stern reminder to businesses in Nigeria about the necessity of obtaining the appropriate licenses before offering investment or specialized financial services to the public. The ruling aims to reinforce the regulatory framework governing financial operations in the country, ensuring that companies adhere to legal standards designed to protect investors and maintain market integrity.

This ruling comes amid ongoing discussions about the need for stricter regulations in the financial sector, particularly with the SEC's recent proposals for new rules governing online foreign exchange and Contracts for Difference (CFD) trading in Nigeria. These developments underscore a growing commitment to safeguarding the financial landscape against unlicensed operations and fraudulent schemes.