By Ayomide Otitoju
The Federal High Court in Lagos has ordered the final forfeiture of cash, luxury vehicles, and properties worth over ₦800 million traced to a fraud scheme involving the illegal diversion of funds from 575 dormant customer accounts at Union Bank.
The ruling, delivered on Friday by Justice Nicholas Osiagor, followed an application by the Economic and Financial Crimes Commission (EFCC) for a non-conviction-based forfeiture of assets believed to be proceeds of financial crime.
Representing the EFCC, Hanatu Kofar-Naisa argued that the forfeiture was necessary to prevent the retention of illicit gains by individuals or entities. The application relied on Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006 and Section 44(2)(b) of the 1999 Constitution (as amended).
“This application is not targeted at persons but at properties acquired through criminal diversion of funds. To allow them to keep these assets would be to endorse illegality,” Kofar-Naisa told the court.
Among the forfeited items are luxury vehicles, including Mercedes Benz C300, BMW SUVs, Range Rovers, and Toyota Hilux pickups, as well as properties and large sums of cash, including money discovered inside a black Cadillac Escalade SUV.
According to a 285-paragraph affidavit deposed by EFCC investigator Sulaiman Aminu Muhammad, approximately ₦2.007 billion was fraudulently withdrawn between 2022 and 2023 from dormant or “no-debit” accounts flagged by Union Bank’s internal audit team.
Two companies—Actus Homes Limited and Fav Oil and Gas Limited—were identified as key vehicles used in the diversion, despite having no known relationship with the affected customers.
Union Bank filed a formal complaint with the EFCC in October 2022, followed by a detailed petition in July 2023, prompting an in-depth investigation.
While Union Bank recovered ₦519.1 million from internally flagged accounts, the EFCC successfully traced and secured additional assets. An interim forfeiture order was granted on May 16, 2025, followed by a public notice published in Vanguard newspaper on June 5, with no objections received.
Justice Osiagor, having reviewed all submissions and due process, granted the final forfeiture order. Although the forfeiture is civil in nature, the EFCC confirmed that criminal proceedings against individuals involved are ongoing.
