The Federal High Court in Lafia, Nasarawa State, has convicted 21 companies for operating financial investment businesses without valid licences from the Securities and Exchange Commission (SEC). The companies were prosecuted by the Abuja Zonal Directorate of the Economic and Financial Crimes Commission (EFCC) under Section 57(1) of the Banks and Other Financial Institutions Act, 2020.
The companies were arraigned separately on September 15 and 16, 2026. As their representatives were absent when the charges were read, the court entered not-guilty pleas on their behalf following an application by the prosecution counsel, Nasir Umar. The trial subsequently commenced.
To support its case, the prosecution presented intelligence reports, statements from investigating officers, official correspondence, and responses obtained from the Corporate Affairs Commission and the SEC. The evidence indicated that the companies had engaged in financial investment activities, including advertising investment management services, without the required regulatory approval.
The EFCC stated that the companies were investigated after intelligence linked them to investment fraud and unlawful financial operations. Their promoters were invited for questioning in December 2022 and January 2023 but allegedly failed to appear. The Commission further claimed that the promoters avoided interrogation for several years.
Justice Anyalewa Onoja-Alapa found the companies guilty and sentenced each to a fine of N30 million. The court also ordered each company to pay an additional N200,000 for every day the offence was committed. The judgment underscores the importance of regulatory compliance and the legal consequences of operating financial businesses without proper licences.
