N5.7bn Fraud Case: Bauchi Finance Commissioner Faces Money Laundering Charges in Federal Court
Nigeria's anti-corruption agency has arraigned Bauchi State's Commissioner for Finance, Yakubu Adamu, on money laundering charges related to an alleged N5.7 billion fraud involving phantom motorcycle contracts and diverted bank loans. The case, heard before the Federal High Court in Abuja, exposes how state officials allegedly exploited banking systems to channel public funds through corporate networks while leaving government contracts unfulfilled.
Adamu, previously a branch manager at Polaris Bank in Bauchi, faces six counts alongside two companies—Ayab Agro Products and Freight Company Limited—after investigations by the Economic and Financial Crimes Commission (EFCC) uncovered what prosecutors describe as a sophisticated scheme to divert funds earmarked for public procurement.
Background and Context
The case centers on a purported contract between the Bauchi State Government and Emmanuel Asomugha General Enterprises for the supply of motorcycles. According to EFCC investigators, the company obtained a N4.65 billion loan facility from Polaris Bank, allegedly guaranteed by the state government, despite having no apparent capacity to fulfill the contract.
The alleged fraud represents a continuing challenge for Nigeria's anti-corruption efforts, with public procurement remaining particularly vulnerable to exploitation through financial intermediaries and political connections. Similar schemes have been documented across Nigeria's state governments, where guaranteed loans often disappear through complex corporate structures.
Key Figures and Entities
Court documents identify Yakubu Adamu as the central figure, leveraging his positions as both a Polaris Bank branch manager and subsequently as Bauchi's Finance Commissioner. The EFCC alleges Adamu conspired with Ishaku Mohammed Aliyu and Muntaka Mohammed Duguri—managing directors of companies currently at large—to facilitate the alleged money laundering operations.
The investigation extends to Sa'idu Abubakar, Bauchi's former Accountant-General, whom whistleblower testimony suggests participated in directing the flow of funds. Two corporate entities—Ayab Agro Products and Freight Company Limited—were named as recipients of portions of the diverted N4.6 billion, with financial transfers allegedly orchestrated through Adamu's banking connections.
Legal and Financial Mechanisms
The alleged scheme relied on exploiting Nigeria's banking sector and government procurement processes. Prosecutors contend that while Polaris Bank released funds based on state guarantees and assurances of delivery, no motorcycles were actually supplied to the Bauchi State Government.
The charges reference violations of Nigeria's Money Laundering (Prevention and Prohibition) Act, 2022, specifically Section 21(a), which criminalizes the conversion, transfer, and concealment of funds known to be proceeds of unlawful activity. One count specifically alleges Adamu acquired and transferred N976 million through I.S. Makayye Investment Resources Limited despite knowledge of its criminal origins.
International Implications and Policy Response
While this case unfolds within Nigeria's domestic legal system, it highlights broader challenges in combating financial crimes across developing economies where state guarantees can be exploited to access international banking channels. The involvement of commercial banks in facilitating such transactions raises questions about due diligence requirements and the implementation of international anti-money laundering standards.
The case underscores the ongoing tension between Nigeria's anti-corruption mandate and systemic vulnerabilities in public financial management. International partners monitoring Nigeria's governance reforms continue to emphasize the need for strengthened safeguards around guaranteed lending and procurement processes, particularly at subnational levels where oversight mechanisms often prove inadequate.
Sources
This report draws on court filings from the Federal High Court in Abuja, EFCC investigation documents, and Nigerian legal statutes. The case timeline spans from June to December 2023, with ongoing proceedings expected to address bail applications in January 2026. Primary documentation includes the six-count charge sheet and related financial transaction records reviewed by investigators.
