EFCC Secures N30 Million Fine Against 21 Firms Over Illegal Investment Schemes

​ABUJA — The Federal High Court sitting in Lafia, Nasarawa State, has handed down convictions to 21 corporate entities for running unauthorized financial investment schemes without regulatory backing from the Securities and Exchange Commission (SEC).

​Presiding over the matter, Justice Anyalewa Onoja-Alapa ordered each of the convicted companies to pay a heavy fine of N30 million. Furthermore, the court imposed an additional daily penalty of N200,000 for the entire duration the illegal operations were maintained.

​The successful prosecution was spearheaded by the Abuja Zonal Directorate of the Economic and Financial Crimes Commission (EFCC), following a painstaking multi-year investigation into unverified digital and agro-investment platforms.

​Anatomy of the Fraud and Legal Battle

​The companies—which include prominent names such as Ngwuoke Daniels Technologies, Credio Banco Ltd, Digital Company Ltd, Qnet Nigeria Ltd, and Kwakol Markets Ltd—faced a one-count charge each. The charges centered on violations of Section 57(1) of the Banks and Other Financial Institutions Act (BOFIA) of 2020, punishable under Section 57(5)(a) of the same legislation.

​According to court filings, investigations revealed that the firms engaged in specialized financial businesses, notably advertising and managing investment portfolios without securing the requisite operating licenses from the SEC.

​During the court proceedings, representatives of the 21 corporate bodies failed to appear. Consequently, prosecution counsel Nasir Umar applied for a “not guilty” plea to be entered on their behalf, paving the way for a swift trial. The EFCC presented compelling evidence, including intelligence reports, statements from investigators, official responses from the Corporate Affairs Commission (CAC), and verification documents from the SEC, which sealed the convictions.

​Evading Justice

​The crackdown follows actionable intelligence gathered by anti-graft operatives linking the firms to widespread investment fraud. Investigators noted that the promoters of these entities consistently frustrated efforts to bring them to book.

ADVERTISEMENT

​Records show that the promoters ignored formal invitations for interrogation issued on December 22, 2022, and January 12, 2023. Having successfully evaded investigative authorities for nearly five years, the EFCC ultimately shifted its legal strategy toward prosecuting the corporate entities directly, culminating in the recent court judgment.

​Financial analysts view this landmark ruling as a strong deterrent against unlicensed operators exploiting unsuspecting citizens through dubious digital, agricultural, and general investment ventures.