Appeal Court overturns forfeiture of Emefiele’s assets, orders fresh trial

The Court of Appeal in Lagos has set aside an order of final forfeiture of some assets seized from embattled former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele.

The court’s three-member bench overturned the forfeiture order in a two-to-one split decision, with the binding majority decision citing conflicting evidence and procedural missteps in the trial court.

The PUNCH, relying on the certified true copy (CTC) of the decision, reported on Monday that the judgement was delivered on 9 April.

According to the newspaper, the Court of Appeal, through its majority decision, ordered a retrial at the Federal High Court, Lagos, which had on 1 November 2024 granted the Economic and Financial Crimes Commission’s (EFCC) application for the final forfeiture of Mr Emefiele’s assets.

PREMIUM TIMES had reported that the disputed assets include multiple high-value properties in Lagos and Delta states. Among them are two detached duplexes at No. 17B Hakeem Odumosu Street, Lekki Phase 1, Lagos; a bungalow and undeveloped land on Oyinkan Abayomi Drive (formerly Queen’s Drive), Ikoyi and a four-bedroom duplex at 12A Probyn Road, Ikoyi.

Others are industrial complex under construction on 22 plots in Agbor, Delta State; eight uncompleted apartment units on Adekunle Lawal Road, Ikoyi; a detached duplex on Bank Road, Ikoyi; shares in Queensdorf Global Fund Ltd, and $2,045,000 in cash.

Although the Court of Appeal’s majority decision overturned the final forfeiture of the properties, it ruled that the final forfeiture of the $2,045,000 cash was in order.

It is not clear whether an appeal has already been filed or is planned for the Supreme Court against the Court of Appeal’s decision. When contacted by phone on Monday, EFCC spokesperson Dele Oyewale stated that he could not immediately confirm the existence or possibility of such an appeal.

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But it was learnt that case has been back to the Federal High Court for a retrial based on oral and documentary evidence as ordered by the Court of Appeal

EFCC’s claims

The EFCC had argued that the properties were acquired with proceeds of unlawful activities, and that Mr Emefiele failed to provide clear proof of ownership or legitimate purchase.

The anti-graft agency noted that many of the properties were registered under companies in which he was neither a shareholder nor a director.

The trial judge, Dehinde Dipeolu, accepted these arguments, concluding that there was a “dark” element to the acquisitions and that the former CBN boss had failed to demonstrate any lawful interest in the assets.

Delivering the judgement, Mr Dipeolu granted an order for the final forfeiture of the assets to the federal government.

Appeal issues

Displeased with the verdict, Mr Emefiele, represented by Olalekan Ojo, who is a Senior Advocate of Nigeria (SAN), appealed against it.

The appellant raised five key issues, including whether the trial court properly evaluated the affidavit evidence.

He also urged the Court of Appeal in Lagos to determine whether the trial judge erred in not holding that the appellant had established an interest in the listed properties, thereby warranting a refusal of the forfeiture application.

He also asked the court to determine if it was proper to dismiss the appellant’s motion for a stay of proceedings in both the civil and criminal cases against the appellant.

Another issue of appeal is whether the trial court ought to have struck out the EFCC’s counter-affidavit for not being provided for under Section 17 of the Advance Fee Fraud Act and whether the trial judge was correct in declining jurisdiction to entertain the appellant’s application for a stay of proceedings.

The EFCC, represented by Rotimi Oyedepo, also a SAN, countered the appeal.

He contended that Mr Emefiele failed to link any legitimate source of funds to the acquisitions, adding that none of the assets were in his name and were not declared to the Code of Conduct Bureau.

Majority decision favours Emefiele

However, the appellate court’s majority decision, endorsed by two of the three members of the panel, overturned the Federal High Court’s decision.

In his lead judgement, a member of the Court of Appeal’s panel, Abdulazeez Anka, held that the affidavit evidence was conflicting for a final decision to be made without oral testimony and cross-examination.

“These funds are the legitimate earnings of the appellant as provided,” Mr Anka said.

READALSO: EFCC arraigns Emefiele for stealing, unlawful acquisition of 753 housing units

He noted that Mr Emefiele had disclosed severance packages from Zenith Bank exceeding N1.75 billion, shareholding worth N500 million, and earnings as CBN governor totalling N350 million per annum, along with quarterly reimbursements and estacodes amounting to over $6 million.

Given the complexity and disputes over the origin and ownership of the assets, the court ruled that “a proper trial with oral evidence” was necessary.

While the court reversed the forfeiture of the properties, it upheld the final forfeiture of the $2,045,000, as Mr Emefiele did not contest it.

Mohammed Mustapha concurred fully with Mr Anka, stressing that there was no legal barrier to properties being acquired in trust for someone else.

Minority decision disagrees

However, another member of the panel, Danlami Senchi, dissented, describing the call for oral evidence as unnecessary and a waste of judicial time.

Mr Senchi, whose opinion is non-binding, argued that the companies used to purchase the properties did not challenge the forfeiture and that Mr Emefiele had no legal standing to do so on their behalf.

“The interested party has denied any links with the companies that purchased the property and so cannot lay claim to what is not his,” Mr Senchi ruled, dismissing the appeal and affirming the trial court’s judgement.

Background

The forfeiture case is one of several legal battles involving the former CBN chief, who served from 2014 until his suspension by President Bola Tinubu in June 2023.

Apart from the assets in issue in the case, there is also an estate of over 753 housing units in Abuja, seized from Mr Emefiele. The former CBN governor is on appeal challenging the forfeiture order.

READ ALSO: EFCC arraigns Emefiele for stealing, unlawful acquisition of 753 housing units

On Monday, EFCC arraigned him at the FCT High Court in Abuja on charges of unlawful acquisition of the property. He denied the charges.

Mr Emefiele is currently facing three other separate criminal trials, including a case of 23 counts of fraud at the Lagos Special Offences Court in Ikeja.

He also faces charges of illegal currency printing at the FCT High Court in Abuja. Prosecutors alleged in the case that he authorised the printing of N684 million in banknotes for N18.96 billion without presidential approval.

Also, a $6.23 million fraud and forgery case is pending against him at the FCT High Court. In the case, EFCC accused Mr Emefiele of forging a presidential directive and unlawfully awarding contracts.

All three cases are based on findings of Jim Obaze, a special investigator appointed by the Tinubu administration to probe the CBN under Mr Emefiele’s leadership.

But Mr Emefiele has denied all charges.