CBN opposes EFCC’s bid to seize ₦2.7bn collateral property

• Published On: 06 March 2025 at 18:25

The Central Bank of Nigeria has asked the Federal High Court in Abuja to dismiss a forfeiture case initiated by the Economic and Financial Crimes Commission for a property worth ₦2.7 billion.

This property, located at Plot 781, Cadastral Zone 001, Karmo District, Abuja, served as collateral for a loan made possible by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending, part of the CBN's Anchor Borrowers' Programme.

CBN's lawyer, Joseph Abah, informed Justice Emeka Nwite that the central bank had filed court documents to join the EFCC case and seek dismissal.

He stated that the bank provided a counter-affidavit and a written address to prove that the property in question was a valid loan collateral under the NIRSAL.

According to reports, the legal dispute began on August 8, 2024, when the EFCC filed an originating motion ex parte to seek court approval for the interim forfeiture of Plot 781, Cadastral Zone 001, Karmo District, Abuja.

The EFCC's 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 while investigations and possible prosecution of Toks Properties Limited continue.

On September 3, 2024, Justice Emeka Nwite granted the EFCC's request and prohibited any disposal, lease, sale, or mortgage of the property, as per the agency's application.

At Thursday's resumed hearing, CBN's lawyer and another lawyer representing Salis Ventilated Homes Limited informed the court that they had filed separate applications to join the EFCC forfeiture case as defendants.

In its court filings, the CBN claimed that it monitors and regulates banks and all banking activities in Nigeria.

The CBN legal team, led by Abah, stated that Sadolen Interworld Limited received a loan of ₦3,872,882,250 from NIRSAL under the Anchor Borrowers' Programme in 2020 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 Central Bank of Nigeria stated.

The CBN also stated that during the loan transaction, the surety executed a Deed of Legal Mortgage in its favour through NIRSAL, and the original title document for the collateral was deposited with and handed over to NIRSAL.

The CBN also stated that the surety agreed not to alienate, sell, or transfer the property without prior written approval from the CBN via NIRSAL.

The apex bank emphasised that "the loan sum has not been discharged, and the subject property remains the security for the mortgage," and that the CBN retains an equitable interest in the property.

"We urge the Honourable Court to resolve the sole issue in favour of the respondent (CBN), set aside the interim forfeiture order, and dismiss the instant suit (by the EFCC) for want of jurisdiction," the CBN wrote in its court application.

Justice Emeka Nwite asked the CBN lawyer if he had served the EFCC legal team with court documents, and Abah confirmed that he had.

The EFCC legal team then informed the judge that they had received the CBN documents that day and would require time to file a formal response.

The EFCC maintained that it was only seeking to preserve the property while its financial crimes investigation into the parties involved was ongoing.