Alleged Money Laundering: Nigerian Court Freezes 21 Bank Accounts, Orders Arrest Of Account Holders

A Federal High Court in Abuja has issued a temporary order to freeze 21 bank accounts across 13 commercial banks in Nigeria and directed the arrest of their holders. Justice Emeka Nwite issued the order following an ex-parte motion presented by Ibrahim Mohammed, counsel to the Inspector-General of Police (I-G).

The court ordered the banks to restrict withdrawals, place a “Post-No-Debit” (PND) on the accounts, disable ATMs linked to them, and allow only deposits during the investigation. This directive is set to remain in effect for a 90-day investigation period.

Affected Banks

The affected banks include Access Bank Plc, Sterling Bank Ltd, Wema Bank Plc, Fidelity Bank Plc, Zenith Bank Plc, Union Bank Plc, Guarantee Trust Bank Ltd, United Bank of Africa Plc, Stanbic IBTC Bank Plc, First Monument Bank Plc, Heritage Bank Plc, TAJ Bank Plc, and Keystone Bank Plc.

Basis for the Order

The I-G filed the motion as part of a case marked FHC/ABJ/CS/1965/V/2024, claiming the accounts are suspected of housing funds linked to unlawful activities, including fraud. According to Mohammed, any transactions involving these accounts would undermine the ongoing investigation.

Background of the Case

The investigation stems from a petition received on February 12, 2024, alleging theft and breach of trust involving a joint venture agreement between two parties.

The complainant and the accused had opened a joint account with Zenith Bank for a contract awarded by the Nigerian Navy.
The contract involved the supply of ICT equipment, wooden canoes, Yamaha engines, inverters, and firefighting tools.
Initially, both parties agreed to share 15% of the profit with the accused. However, a disagreement arose when the complainant proposed a revision of the profit-sharing ratio to 7.5%.

Allegations of Misconduct

The accused allegedly manipulated the joint account by removing the complainant as a signatory, making himself the sole signatory. The funds meant for contract execution were reportedly diverted to multiple accounts to conceal their origin, a tactic described as promoting money laundering.

Detective Glory Ohio, attached to the Force Criminal Investigation Department, stated that the suspect’s activities were motivated by a deliberate intent to steal from the joint account. Transfers were traced back to other accounts controlled by the suspect, further raising concerns about the legality of the transactions.

Implications

The court has adjourned the matter until April 3 for further deliberations. In the meantime, the freeze ensures the accounts remain inaccessible, preventing further withdrawals that could compromise the investigation.