Court Convicts 21 Companies for Operating Illegal Investment Schemes

A Federal High Court sitting in Lafia, Nasarawa State, has convicted and sentenced 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) after investigations allegedly linked them to investment-related offences and operations without the required regulatory approvals. They were arraigned on September 15 and 16, 2026, on separate one-count charges under Section 57(1) of the Banks and Other Financial Institutions Act, 2020.

Justice Anyalewa Onoja-Alapa subsequently convicted the 21 companies and imposed a ₦30 million fine on each, amounting to ₦630 million in total. The court also ordered each company to pay an additional ₦200,000 for every day the offence was committed.  

The EFCC said its case was supported by intelligence reports, statements from investigating officers, investigation-related correspondence and responses from the Corporate Affairs Commission and the SEC. The Commission also stated that promoters of the companies had been invited for questioning in December 2022 and January 2023 but allegedly failed to honour the invitations.  

The development underscores the regulatory requirement for businesses offering investment and other specialised financial services to obtain the appropriate licences before operating. Authorities have repeatedly advised members of the public to verify the regulatory status of investment platforms before committing their funds.