The Central Bank of Nigeria has requested the Federal High Court in Abuja to dismiss a forfeiture case initiated by the Economic and Financial Crimes Commission concerning a property valued at ₦2.7 billion.
This property, located at Plot 781, Cadastral Zone 001, Karmo District, Abuja, was used as collateral for a loan granted through the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending under the CBN’s Anchor Borrowers’ Programme.
CBN’s lawyer, Joseph Abah, told Justice Emeka Nwite that the apex bank had filed court documents to join the EFCC case and seek its dismissal.
He stated that the bank submitted a counter-affidavit and a written address to demonstrate that the property in question was a legitimate loan collateral under the NIRSAL.
Reports indicate that the legal dispute began when the EFCC filed an originating motion ex parte on August 8, 2024, seeking court approval for the interim forfeiture of Plot 781, Cadastral Zone 001, Karmo District, Abuja.
The EFCC legal team also requested a court order allowing the agency to appoint a qualified individual or firm to manage the temporarily forfeited asset on behalf of the federal government pending the outcome of investigations and possible prosecution of Toks Properties Limited.
On September 3, 2024, Justice Emeka Nwite granted the EFCC’s request and prohibited any disposal, lease, sale, or mortgage of the property, in line with the agency’s application.
At the resumed hearing on Thursday, CBN’s lawyer and another lawyer representing Salis Ventilated Homes Limited informed the court that they had separately filed applications to join the EFCC forfeiture case as defendants.
In its court filings, the CBN argued that it oversees the monitoring and regulation of banks and all banking activities in Nigeria.
The CBN legal team, led by Abah, stated that in 2020, the CBN, through NIRSAL under its Anchor Borrowers’ Programme, granted a loan of ₦3,872,882,250 to Sadolen Interworld Limited to finance rice production.
“The said collateral (property), which is located in the Karmo District of the Federal Capital Territory, is valued at N2.7 billion,” the CBN stated.
The CBN further stated that during the loan transaction, the surety executed a Deed of Legal Mortgage in its favor through NIRSAL, and the original title document of the collateral was deposited with and handed over to NIRSAL.
The CBN also explained that the surety executed an undertaking not to alienate, sell, or transfer the property without prior written approval from the CBN through NIRSAL.
The apex bank stressed that “the loan sum has not been discharged, and the subject property remains the security for the mortgage,” maintaining that the CBN has an equitable interest in the property.
“We urge the Honourable Court to resolve the sole issue in favor of the respondent (CBN), set aside the interim forfeiture order, and dismiss the instant suit (by the EFCC) for want of jurisdiction,” the CBN stated in its court filings.
Justice Emeka Nwite asked the CBN lawyer whether he had served the EFCC legal team with the court processes, and Abah confirmed that he had.
The EFCC legal team then informed the judge that they had received the CBN’s documents that day and would need time to file a formal response.
The EFCC maintained that it was only seeking to preserve the property pending the outcome of its financial crimes investigation against the parties involved.
