FEDERAL HIGH COURT ORDERS FINAL FORFEITURE OF N2BN FRAUD-TAINTED ASSETS LINKED TO UNION BANK SCANDAL
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By Aishat Momoh. O.
The Federal High Court in Lagos has ordered the permanent forfeiture of luxury assets, high-end vehicles, and substantial cash sums linked to a sophisticated ₦2 billion fraud scheme involving the illegal diversion of funds from dormant Union Bank customer accounts.
Justice Daniel Osiagor granted the Economic and Financial Crimes Commission’s (EFCC) application for non-conviction-based final forfeiture on Friday, following exhaustive investigations into unauthorized withdrawals from 575 customer accounts.
EFCC counsel, Hanatu Kofar-Naisa, argued that the forfeiture was necessary under Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006, and Section 44(2)(b) of the 1999 Constitution. She emphasized that the proceedings targeted illegally acquired assets, not individuals, and urged the court to reject any tolerance for criminal enrichment.
Among the forfeited assets are: A three-bedroom bungalow on Macedonia Street, Queens Estate, Karsana, Gwarimpa, FCT, A house at No. 8 Grace Crescent, Efab Queens Estate, Gwarimpa, Abuja, Multiple luxury vehicles including Mercedes Benz, BMW SUVs, Range Rovers, Toyota Hilux pickups, N326.4 million and $480,000 in recovered cash
According to a detailed affidavit filed by EFCC investigator Sulaiman Aminu Muhammad, the funds were fraudulently funneled through two companies — Actus Homes Limited and Fav Oil and Gas Limited — which received ₦681.2 million and ₦1.388 billion respectively. Investigators found no legitimate banking or commercial basis for these transfers.
The fraud, described by EFCC as “monumental,” came to light through a petition filed by Union Bank on October 24, 2022, revealing that its systems had been compromised to debit “no-debit” accounts. A follow-up petition in July 2023 confirmed the total loss exceeded ₦2 billion.
Investigations uncovered that assets were acquired using diverted funds, including cash found stashed in a black Cadillac Escalade SUV. The court had granted an interim forfeiture order on May 16, 2025, followed by a public notice published on June 5 inviting claims — but none were received.
Justice Osiagor, satisfied with the EFCC’s evidence and due process, ordered the final forfeiture to the Federal Government. The suspects behind the fraud are said to be facing separate criminal trials.
Union Bank has recovered ₦519.1 million from flagged accounts, while the EFCC continues efforts to dismantle the network behind one of Nigeria’s most significant corporate banking frauds in recent memory.
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