NIRSAL: CBN asks Court to dismiss EFCC’s forfeiture bid against N2.7 billion collateral property  

CBN’s lawyer, Joseph Abah, told Justice Emeka Nwite on Thursday that the apex bank had filed court documents seeking to join the EFCC case and argue for its outright dismissal through its proposed counter-affidavit and written address to show cause.

Naijaonpoint reports that the legal dispute arose after the EFCC, on August 8, 2024, filed an originating motion ex parte requesting the court’s approval for the interim attachment/forfeiture of Plot 781, Cadastral Zone 001, Karmo District, Abuja.

The EFCC legal team also sought a court order authorizing the anti-graft agency to appoint a competent person or firm to manage the asset temporarily forfeited to the federal government pending the conclusion of investigations and possible prosecution of Toks Properties Limited.

Justice Nwite had, on September 3, 2024, granted the EFCC’s request while prohibiting any disposal, lease, sale, or mortgage of the property in line with the agency’s application.

At the resumed hearing on Thursday, the CBN lawyer and another lawyer representing Salis Ventilated Homes Limited stated that they had separately filed applications to join as parties (defendants) in the EFCC forfeiture case.

“The said collateral (property), which is located in the Karmo District of the Federal Capital Territory, is valued at N2.7 billion,” the CBN stated.

The apex bank added that during the loan transaction, the surety executed a Deed of Legal Mortgage in favor of the CBN through NIRSAL, and the original title document of the collateral was deposited and handed over to NIRSAL.

Additionally, the CBN explained that the surety executed an undertaking not to alienate, sell, or transfer the property without the prior written approval of the CBN through NIRSAL.

The CBN further submitted, through its affidavit to show cause, that the court cannot grant a forfeiture order over the property, as doing so would prejudice the legal and equitable rights of the CBN, which retains the right to hold the property until the loan is fully discharged.

“We urge the Honourable Court to resolve the sole issue in favor of the respondent (CBN), set aside the interim forfeiture order, and dismiss the instant suit (by the EFCC) for want of jurisdiction,” the CBN stated in its court filings.

Justice Emeka Nwite asked the CBN lawyer whether he had served the EFCC legal team with the court processes, to which Abah responded in the affirmative.

The outcome of this case will have significant implications for both the regulatory and monitoring powers of the CBN and the scrutiny of financial transactions by anti-graft agencies.