EFCC Files Multi-Billion Naira Forex Fraud Charges Against Banks and Corporate Entities

Nigeria's Economic and Financial Crimes Commission has filed charges worth N4.3 billion against United Bank for Africa Plc and several corporate entities and individuals in a major forex fraud case. The charges were presented at the Ikeja Special Offences Court, though proceedings were adjourned after none of the defendants appeared for their scheduled arraignment.

Background and Context

The case represents another significant effort by Nigerian authorities to curb foreign exchange manipulation and financial crimes in the country's banking sector. The EFCC has increasingly focused on forex-related offences as Nigeria continues to manage foreign currency shortages and multiple exchange rates. The alleged activities occurred between September 2022 and March 2023, a period marked by significant volatility in Nigeria's foreign exchange market.

Key Figures and Entities

The defendants include United Bank for Africa Plc, one of Nigeria's largest financial institutions; Muyiwa Akinyemi and Amangbo Stephen, identified as individuals; and two corporate entities—Gesos Global Service Ltd and Fedat Global Ltd. According to court proceedings, the second and third defendants (Akinyemi and Stephen) are currently evading authorities, with EFCC counsel Temitope Banjo informing the court that efforts are underway to locate them.

Legal and Financial Mechanisms

The prosecution has filed a four-count charge including conspiracy, theft, money laundering, and retention of proceeds of crime. Central to the case is the alleged fraudulent conversion of N4.3 billion belonging to Energy Shield Petrochemical Ltd. Additionally, the defendants are accused of conspiring to sell foreign exchange at rates exceeding those stipulated by the Central Bank of Nigeria, subsequently laundering the proceeds. UBA is specifically cited for allegedly retaining the disputed sum in account number NGN0991931102.

The charges reference multiple violations of Nigerian law, including Sections 8 and 17(a) of the Advance Fee Fraud and Other Related Offences Act, No. 14, 2006; Sections 285 and 332(1) of the Criminal Laws of Lagos State (2015); and Section 17 of the Economic and Financial Crimes Commission (Establishment, etc.) Act, 2004.

International Implications and Policy Response

This case highlights ongoing challenges in Nigeria's financial regulatory framework, particularly concerning foreign exchange controls and corporate governance. The involvement of a major commercial bank raises questions about internal controls and compliance mechanisms within Nigerian financial institutions. The case may also impact Nigeria's international standing as it continues efforts to improve its anti-money laundering and counter-terrorist financing regime.

Sources

This report is based on court proceedings and documents from the Ikeja Special Offences Court, along with information provided by the Economic and Financial Crimes Commission. The proceedings were documented in April 2024.