$13 Million Oil Block Fraud Case: Court to Rule on Forfeiture of Funds Linked to Nigerian Company

A Nigerian court is set to rule on whether $13 million paid for two lucrative oil blocks should be permanently forfeited to the federal government, with anti-graft investigators alleging the funds represent proceeds of unlawful activity. The case centres on Oceangate Engineering Oil & Gas Limited, a company linked to businesswoman Aisha Achimugu that secured deep offshore and shallow water petroleum licences despite questions about the source of its payment.

The Federal High Court in Abuja has scheduled March 25, 2025 to determine whether to grant the Economic and Financial Crimes Commission's application for final forfeiture of the funds. The EFCC claims the money was laundered through a network of intermediaries to meet signature bonus requirements for petroleum prospecting licences PPL 302 and PPL 3007.

Background and Context

The controversy emerged after Oceangate participated in Nigeria's oil block licensing process in 2024, successfully bidding for deep offshore PPL 302 and shallow water PPL 3007 through the Nigerian Upstream Petroleum Regulatory Commission. The company was required to pay signature bonuses totalling $37.2 million to secure the licences, of which investigators allege $13 million came from illicit sources.

Court records show that Justice Emeka Nwite initially granted an interim forfeiture order on August 22, 2025, directing the EFCC to publish the order in a national newspaper and invite interested parties to show why the funds should not be permanently forfeited. The case highlights ongoing challenges in Nigeria's efforts to combat money laundering in its lucrative oil sector.

Key Figures and Entities

EFCC investigator Usman Aliyu stated in court filings that Oceangate was registered with the Corporate Affairs Commission in 2005 under registration number RC 617736. The company's alleged controller, Aisha Achimugu, serves as group chief executive officer and reportedly admitted in an extrajudicial statement to exercising "the most significant control" over the company.

The case also involves several intermediaries, including Suleiman Chiroma, described by Oceangate as a licensed bureau de change operator, and companies including Ashrab Energy and Oil Services Limited. Court documents allege that Ashrab Energy received N2.45 billion in government contractor funds, converted them to dollars, and transferred them to Oceangate's account. Another individual named in court filings is Iliya Wakil, who identified himself as an Oceangate director but whom investigators claim was actually an employee of Felak Concept Group Limited, another company owned by Achimugu.

Legal and Financial Mechanisms

According to the EFCC's investigation, Oceangate paid approximately $20 million to the federal government between March 20 and April 3, 2025, through multiple transfers from its Zenith Bank account. The remaining $13 million allegedly came through a complex money laundering scheme involving Lagos government contractors and bureau de change operators.

Investigators allege that public funds intended for Lagos state contracts were diverted to Oceangate through intermediaries, with no legitimate business relationship between the contractors and the oil company. The EFCC claims the company's auditor, Godwin Ukah, admitted in questioning that he prepared audit reports without reviewing Oceangate's account statements and that the company had not actively earned from oil and gas exploration.

International Implications and Policy Response

The case underscores persistent challenges in Nigeria's efforts to ensure transparency in its oil sector, which has historically been plagued by corruption allegations. The alleged use of intermediary companies and bureau de change operators to obscure the origins of funds highlights the sophisticated methods employed to move illicit money through legitimate financial channels.

Regulatory oversight remains a concern, with investigators describing Oceangate as "a briefcase/shell company created as a vehicle for the purpose of holding petroleum-related assets procured with funds reasonably suspected to be proceeds of unlawful activity." The outcome of this case could influence how Nigerian authorities approach similar cases involving questionable ownership structures in the oil sector.

Sources

This report draws on court filings from the Federal High Court of Nigeria, EFCC investigation reports, corporate records from the Corporate Affairs Commission, and banking documentation referenced in proceedings between 2024 and 2025. Information was also drawn from public statements made by parties involved in the case.