In a dramatic move against financial crimes, the Federal High Court in Abuja has ordered the temporary freezing of 21 bank accounts suspected of being used for money laundering. The accounts, domiciled in 13 major Nigerian banks, are linked to an alleged scheme involving fraudulent Navy contracts.
Justice Emeka Nwite issued the ruling on Friday following an ex-parte motion filed by the Inspector-General of Police (IGP) through his counsel, Ibrahim Mohammed. The court directed the banks to halt all withdrawals while allowing deposits into the accounts. Simultaneously, the police were instructed to arrest the account holders for questioning.
“The motion ex-parte is meritorious,” declared Justice Nwite. “The application is hereby granted, except that the investigation can only last for a period of 90 days.”
The Allegations
The IGP’s application alleged that the frozen accounts were used to warehouse proceeds of unlawful activities. According to a sworn affidavit by Glory Ohio, a detective with the Force Criminal Investigation Department, the investigation stemmed from a petition filed on February 12, 2024.
The petition accused an individual of breaching trust in a joint venture agreement involving Indetix Limited, a Special Purpose Vehicle (SPV) company set up to execute contracts for the Nigerian Navy. These contracts included supplying ICT equipment, wooden canoes, outboard engines, inverter batteries, and firefighting equipment.
The petitioner claimed that both parties had initially agreed on sharing 15% of the profits, formalized through a memorandum of understanding. However, disputes arose when one party attempted to unilaterally amend the profit-sharing agreement to 7.5%.
“The refusal of the petitioner to accept the new terms didn’t go down well with the suspect,” the affidavit stated. It further alleged that the suspect removed the petitioner as a signatory to their joint account, effectively gaining sole control.
Money Transfers and Alleged Laundering
Investigators revealed that funds meant for contract execution were suspiciously transferred from the joint account to various other accounts. The affidavit detailed how these funds were later routed back to the suspect’s personal accounts, raising red flags.
“This act was motivated by clandestine motives to steal from the joint account,” Ohio explained, adding that the scheme aimed to disguise the origins of the illicit funds.
The police argued that immediate action was necessary to prevent further tampering with the accounts. “Unless this court grants the order, the investigation will be jeopardized,” the affidavit warned.
Court’s Directives to Banks
In response, Justice Nwite directed the banks—Access Bank, Zenith Bank, GTBank, UBA, and others—to provide detailed account information and place a Post-No-Debit (PND) on the accounts. The banks were also instructed to disable ATM access to the accounts while allowing inflow transactions to proceed.
In a novel approach, the court authorized the banks to apprehend anyone attempting to transact on the frozen accounts and notify the police immediately.
Suspicions of a Larger Network
Preliminary findings suggest that the alleged fraud extends beyond the petitioner and the primary suspect. According to police intelligence, other individuals may be complicit in laundering money through the frozen accounts.
“This is not an isolated incident but part of a broader network aimed at concealing illicit activities,” said a police source familiar with the investigation.
The Bigger Picture
This case highlights ongoing challenges in Nigeria’s fight against financial crimes. Money laundering has long plagued the country’s economy, with billions lost annually to fraudulent schemes.
Experts argue that the country’s financial institutions must strengthen internal controls to detect suspicious transactions. “Banks have a critical role to play in curbing financial crimes,” said Dr. Adebayo Ogundele, a financial analyst. “Timely reporting of unusual account activity could prevent fraud from escalating to this level.”
What’s Next?
The investigation is set to continue for 90 days, during which the police will gather evidence to build a case for prosecution. The court has adjourned the matter until April 3 for further mention.
For the account holders and those implicated, the stakes couldn’t be higher. If convicted, they could face severe penalties under Nigeria’s anti-money laundering laws.
Meanwhile, the petitioner remains hopeful for justice. “This is a betrayal of trust, and I am confident that the law will take its course,” he said in a statement to the press.
Implications for Navy Contracts
The controversy also casts a shadow over the Nigerian Navy’s procurement processes. Critics argue that lax oversight creates opportunities for fraudulent activities.
The freezing of 21 bank accounts marks a significant step in Nigeria’s anti-corruption efforts. However, experts caution that systemic reforms are necessary to sustain such victories.
As the case unfolds, it serves as a reminder that financial crimes are not victimless—they erode trust, hinder economic development, and tarnish the country’s global reputation.
For now, all eyes are on the Federal High Court and the ongoing investigation, which could set a precedent for future cases of this nature.
