The Central Bank of Nigeria (CBN) has asked a Federal High Court to reject a request by the Economic and Financial Crimes Commission (EFCC) seeking the forfeiture of property worth N2.7 billion, allegedly linked to financial misconduct.
Thank you for reading this post, don't forget to subscribe!Naija247news gathered that the anti-graft agency had approached the court, seeking an interim forfeiture order on the property, which it claims was acquired through proceeds of fraudulent activities. However, the CBN has strongly opposed the move, arguing that the said property was used as collateral for a legitimate financial transaction.
According to Naija247news, the EFCC’s application was based on allegations that the property was connected to illicit financial dealings. The commission insists that the forfeiture is necessary to prevent the assets from being disposed of while investigations are ongoing. However, the CBN contends that the property in question is legally tied to a loan agreement and should not be subjected to forfeiture.
Naija247news understands that the apex bank, in its counter-application, maintained that freezing or forfeiting the property could negatively impact financial agreements and create uncertainty within the banking sector. The CBN further emphasized that due process must be followed in distinguishing assets obtained through criminal activities from those legally acquired through legitimate financial arrangements.
Naija247news reports that the legal battle is shaping up to be a high-stakes confrontation between the country’s financial regulator and the anti-corruption agency. Legal experts believe the outcome of the case could set a precedent for future disputes involving asset forfeiture and financial regulations.
Meanwhile, sources familiar with the matter say the court is expected to schedule a hearing soon to deliberate on the arguments presented by both parties. If the court rules in favor of the EFCC, the property will be temporarily seized pending further investigations. However, if the CBN’s objection is upheld, the bank may retain control over the asset.
According to Naija247news, this case underscores the ongoing tension between regulatory institutions and law enforcement agencies in Nigeria’s financial sector. Observers say it also raises questions about the scope of the EFCC’s authority in seizing assets without conclusive proof of wrongdoing.
As the legal process unfolds, stakeholders in the banking and legal communities will be closely monitoring the proceedings to see how the court balances the fight against corruption with the protection of legitimate financial interests.
