The Central Bank of Nigeria (CBN) has urged the Federal High Court Abuja to dismiss a forfeiture case brought by the Economic and Financial Crimes Commission (EFCC) against a N2.7 billion property (located at Plot 781, Cadastral Zone 001, Karmo District) used as collateral to secure a loan from the apex bank through the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).
Counsel for the CBN, Joseph Abah, told the court 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.
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 Emeka 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.
In the CBN’s court filings, the apex bank argued that it is responsible for the monitoring and regulation of banks and all banking activities in Nigeria.
The CBN legal team, including Abah, stated that sometime in 2020, the CBN, through NIRSAL under its Anchor Borrowers’ Programme (ABP), granted a loan of N3,872,882,250.00 to Sadolen Interworld Limited to finance rice production.
According to the CBN, the loan had a tenor of 12 months and was secured by a third-party collateral belonging to Messrs Toks Properties Limited, which served as surety for the loan transaction.
“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.
