EFCC Slams ₦4.3bn Forex Fraud Charges on UBA, Firms and Executives

Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), has filed criminal charges amounting to ₦4.3 billion against United Bank for Africa (UBA), two companies and two individuals over alleged foreign exchange fraud.

The charges, filed before the Ikeja Special Offences Court in Lagos, name UBA alongside Gesos Global Service Ltd and Fedat Global Ltd, as well as Muyiwa Akinyemi and Amangbo Stephen. Court proceedings could not commence on Monday after none of the defendants appeared.

Prosecutors told the court that all the parties had been duly served and were aware of the case. However, the EFCC disclosed that two of the defendants were currently at large, prompting a request for additional time to ensure their appearance. The presiding judge, Justice Rahman Oshodi, granted the request and adjourned the matter until April 21 for arraignment.

According to court documents, the charges arise from alleged foreign exchange transactions carried out on September 14, 2022, and March 20, 2023. The EFCC alleges that the defendants conspired to sell foreign currency at rates above the official Central Bank of Nigeria (CBN) rate, in breach of prevailing foreign exchange regulations.

The commission further claims that ₦4.3 billion belonging to Energy Shield Petrochemical Ltd was unlawfully converted during the transactions and subsequently retained and processed through UBA accounts. In one of the counts, prosecutors allege that the bank held and managed the funds in a manner that violated Nigeria’s financial crimes laws.

The defendants are facing multiple counts, including conspiracy, theft, money laundering and possession of proceeds of unlawful activities. The charges are said to contravene provisions of the EFCC Act, the Advance Fee Fraud Act and relevant Lagos State criminal laws.

Monday’s court session was limited to procedural issues, with EFCC counsel, Temitope Banjo, requesting time to trace the absent defendants and complete service processes. With the court’s approval, the case will resume on April 21, when the accused are expected to be formally arraigned and enter their pleas.

As regulatory scrutiny of foreign exchange transactions intensifies and enforcement actions increase, the case is likely to attract close attention, particularly given its potential implications for banks, compliance standards and Nigeria’s already fragile foreign exchange market.