EFCC cracks down on unlicensed Capital Market Operators in Lagos

Lagos Zonal Directorate 2 of the Economic and Financial Crimes Commission (EFCC), arraigned a company, Quintessential Investment Company Limited, before Justice Dipeolu of the Federal High Court sitting in Ikoyi, Lagos.

According to the Head, Media and Publicity, EFCC, Mr. Dele Oyewale, the company is being prosecuted on a two-count charge bordering on operating collective investment schemes without a licence by the Central Bank of Nigeria, (CBN).

One of the counts reads: “That you, Quintessential Investment Company Limited, sometime within January and December 2020 in Nigeria, within the Judicial Division of this Honourable court, being a company incorporated in Nigeria, failed to obtain a valid licence from the Central Bank of Nigeria, CBN, to carry on your business of investment management and you thereby committed an offence contrary to Section 57 of the Banks and Other Financial Institutions Act 2020 and punishable under Sections 57(5) of the same Act.”

A “not guilty” plea was entered for the company.

Given his plea, the prosecution counsel, Abdulhamid .L.Tukur, called on Nnadikwu Izuchukwu Collins, an investigator with the EFCC, to review the facts.

Collins, in his review of the facts, stated that the Commission, between 2021 and 2022, received over 25 petitions from various investors, including one Wisdom Odianosen Okoduwa, against the defendant, Quintessential Investment Company Ltd., and its alter ego, Joshua Adeyinka Kayode.

According to him, “ the petitioners alleged that the defendant made wide-range adverts in 2020 and 2021 calling on members of the public to invest in his forex trading business, with a promise of 35% monthly return on their investments.

“ Based on the defendant’s assurances, they cumulatively invested the total sum of N1.2bn and $5,000.00.

Continuing, Collins said: “They further alleged that, at the maturity of their investments, the return on investments and capital were never received. They also alleged that the defendant had been evading all communications, hence they wrote a letter of complaint to the Commission.”

In the course of investigations, letters of investigation activities were sent to the Security and Exchange Commission, SEC, banks, the Central Bank of Nigeria, CBN, and the Corporate Affairs Commission, (CAC), respectively.

He added: “ Responses were received from the above institutions and were analyzed accordingly. The responses from the SEC and the CBN revealed that the defendant, Quintessential Investment Company Limited, is not licensed to deal in investment and forex trading business in Nigeria.

“Further analysis of the defendant’s account in the United Bank of Africa, UBA, revealed that the defendant received the total sum of N1.19bn and this money was disbursed for personal use and paying back existing investors.

Counsel to the prosecution, thereafter, sought to tender, in evidence, the statements from United Bank for Africa, the petition received by the EFCC from a group of investors, investigation reports capturing other investors, banks’ statements, letters to the CAC, CBN, SEC and UBA and their responses.

Justice Dipeolu admitted and marked them as exhibits.

Justice Dipeolu adjourned the case till July 8, 2025, for cross-examination and continuation of trial.