By DAYO ADESULU
Justices Rule in Favour of Fresh Evidence Hearing as $2m Forfeiture Stands
The Court of Appeal in Lagos has overturned the final forfeiture order on a number of high-value assets linked to former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, ruling instead that the case be retried in the lower court to allow for oral and documentary evidence.
In a split decision (2-1) delivered on April 9, 2025, and released via a certified true copy obtained by our correspondent, the appellate court set aside the Federal High Court’s November 1, 2024 ruling that previously granted the Economic and Financial Crimes Commission (EFCC) full rights to seize Emefiele’s properties.
The ruling marks a partial legal victory for Emefiele, whose legal team, led by Olalekan Ojo (SAN), argued that the original forfeiture proceedings were procedurally flawed and deprived the appellant of the opportunity to present sufficient rebuttal evidence.
Properties In Dispute
The Federal High Court had granted the EFCC’s application for forfeiture of several real estate assets and financial instruments allegedly linked to proceeds of corruption. These included:
- Two detached duplexes at 17B Hakeem Odumosu Street, Lekki Phase 1, Lagos
- Undeveloped land on Oyinkan Abayomi Drive (formerly Queen’s Drive), Ikoyi
- Bungalow at 65A Oyinkan Abayomi Drive, Ikoyi
- Four-bedroom duplex at 12A Probyn Road, Ikoyi
- Eight uncompleted apartments at 8A Adekunle Lawal Road, Ikoyi
- A fully detached duplex at 2A Bank Road, Ikoyi
- An industrial complex under construction on 22 plots in Agbor, Delta State
- Forfeiture of $2,045,000 in cash and shares in Queensdorf Global Fund Limited
Appeal Court: Forfeiture Order Flawed, Trial Needed
Justice Abdulazeez Anka, who authored the lead judgment, noted that the facts surrounding the legitimacy of Emefiele’s assets were conflicting, and thus unsuitable for decision based solely on affidavit evidence. He emphasized the need for oral testimonies, cross-examinations, and full documentary evidence to establish lawful or unlawful ownership.
“There is in my view a need to call for further oral as well as documentary evidence… to prove the legitimacy or otherwise of the properties in contention,” Justice Anka stated.
He concluded that a retrial was necessary at the lower court level, ordering the case remitted to the Federal High Court for a fresh hearing before a different judge.
Legal Arguments Raised
Emefiele’s legal team raised five major points on appeal, including:
- The trial judge’s alleged failure to properly evaluate the evidence.
- Emefiele’s interest in the properties and his right to defend ownership.
- Improper dismissal of his request to stay proceedings pending related criminal trials.
- Alleged procedural irregularities involving the EFCC’s counter-affidavit.
- Whether the court had jurisdiction to reject his motion for a stay.
EFCC counsel, Rotimi Oyedepo (SAN), countered that Emefiele failed to provide clear transactional proof linking his declared income to the assets. He also noted that the properties were not registered in Emefiele’s name, but in companies where he held no formal shareholding.
“The appellant did not produce a single piece of evidence showing he used legitimate income to purchase these assets,” Oyedepo argued.
Partial Forfeiture of $2m Upheld
While most of the asset forfeiture was set aside, the Court of Appeal upheld the seizure of $2,045,000, ruling that Emefiele did not contest the forfeiture of this particular sum.
“The final forfeiture against the said sum of $2,045,000 to the Federal Government is hereby affirmed,” Justice Anka ruled.
Justices Mustapha and Anka: Income Can Cover Assets
Justice Mohammed Mustapha, who aligned with Justice Anka, pointed out that Emefiele’s severance package from Zenith Bank, shares worth ₦500 million, and earnings from his 10-year stint as CBN governor, were more than sufficient to afford the assets under dispute.
He added that Code of Conduct forms submitted in 2014 and 2019 could not logically reflect property acquired between 2020 and 2023, thus dismissing EFCC’s claim of non-disclosure for that period as misdirected.
“It is absurd… to expect the appellant to have declared properties acquired in 2020 in forms filled in 2014,” Justice Mustapha said.
He also noted that criminal charges should be resolved before related civil forfeiture actions, aligning with common legal practice to avoid parallel outcomes.
Implications and Next Steps
The Appeal Court’s decision now means that Emefiele will return to the Federal High Court, where both the EFCC and his legal team will present fresh evidence and witness testimony.
Additionally, the case must be reassigned to a different judge other than Justice D.I. Dipeolu, who presided over the original matter.
This development adds another layer of complexity to the former apex bank governor’s growing legal woes, as he continues to face criminal charges and asset probes.
1. Due Process and the Right to a Fair Hearing
The Court of Appeal underscored the need for oral evidence and cross-examination when resolving complex ownership disputes. Justice Anka emphasized that contradictory affidavit evidence cannot substitute for live testimony, procedural fairness, and transparency:
“There is … a need to call for further oral as well as documentary evidence … to prove the legitimacy or otherwise of the properties.” nairametrics.com+15thenigerialawyer.com+15templars-law.com+15
This aligns with principles established in Nigerian jurisprudence—drawing from cases like Nwaigwe & Others v. FRN—where civil forfeiture must still respect fair hearing rights akin to criminal matters templars-law.com.
2. Judicial Attitudes Towards Non-Conviction Forfeiture
Since the 2022 Proceeds of Crime Act and longstanding use of Section 17 of the Advance Fee Fraud Act, Nigerian courts have increasingly granted non-conviction-based forfeiture. However, their willingness is not unqualified. The appellate court’s decision highlights that such civil actions must still be robustly evidential.
The Appeal Court’s insistence on evidentiary rigor marks a boundary: While forfeiture without conviction is permissible, defendants still deserve a thorough, adversarial fact-finding process templars-law.com.
3. EFCC’s Burden of Proof and Emefiele’s Income-Asset Nexus
Justice Mustapha and Anka acknowledged that Emefiele’s past legitimate income—from his Zenith severance package, shareholdings, and decade as CBN Governor—could, in theory, account for the disputed assets. The judges affirmed that such coherent income-to-asset declarations warrant deeper scrutiny through trial rather than outright forfeiture premiumtimesng.com+11thenigerialawyer.com+11newsdigest.ng+11.
This stands in contrast to EFCC’s position, which leaned heavily on the lack of direct transfer evidence and company-registration opacity .
4. Paradox of Parallel Civil and Criminal Proceedings
The appellate judgment reiterated a common legal maxim: criminal trials take precedence over civil forfeiture. Justice Mustapha stressed that initiating a civil action while criminal proceedings were ongoing violated due process and logical legal sequencing .
This procedural requirement fortifies fairness, allowing all relevant factual disputes—especially credibility and intent—to be addressed comprehensively in the criminal forum first.
5. Not All Assets Equally Affected
Interestingly, while real estate forfeitures were set aside, the Court upheld forfeiture of $2,045,000 in cash. The former CBN Governor did not challenge this sum and apparently could not justify it. Numerically, Emefiele lost only that specified amount, while regaining the opportunity to defend his real property ownership via full retrial naijanews.com+7en.wikipedia.org+7dailypost.ng+7.
6. Broader Implications for EFCC Asset Recovery Strategy
This ruling sends mixed signals for EFCC:
- ✅ It upholds civil forfeiture powers.
- ❌ But it underlines that documentary affidavits are insufficient for substantial asset seizures.
Cases like the Abuja estate forfeiture and N830m/$4.7m property seizures linked to Emefiele earlier in 2025 demonstrate both the EFCC’s aggressive recovery approach and its vulnerability when confronted by strong judicial scrutiny von.gov.ng+11efcc.gov.ng+11vanguardngr.com+11naijanews.com+1vanguardngr.com+1efcc.gov.ng+1vanguardngr.com+1.
Agencies now face increased evidential burdens: they must establish an unbroken chain between suspected proceeds and assets, demonstrated convincingly at trial.
7. Lessons for High-Profile Defendants
Emefiele’s defensive posture—emphasizing full disclosure of earnings, timing of Code of Conduct filings, and lack of concealment—paid dividends in destabilizing the EFCC’s case.
Notably, the Court accepted his argument that pre-2020 asset declarations could not cover later acquisitions, weakening earlier charges of non-disclosure .
Public officeholders and high-net-worth individuals should thus maintain meticulous financial records, linking income to assets and updating statutory filings—especially when anticipating forfeiture probes.
A Judicial Checkpoint on EFCC Power
The Appeal Court’s reversal of Emefiele’s asset forfeiture—on the grounds of procedural fairness, evidentiary need, and civil-criminal sequencing—firmly re-establishes due process within Nigeria’s non-conviction forfeiture regime.
While it does not undermine the EFCC’s mandate, it strengthens defense rights, reinforces judicial oversight, and demands that future civil asset recoveries must be trials with full access to evidence—not mere affidavit skirmishes.
Conclusion
The Appeal Court’s reversal of Emefiele’s asset forfeiture underscores the judiciary’s commitment to fair trial standards and due process, especially in high-profile corruption cases. While the EFCC retains the option to re-prove its case, the ruling has breathed new life into Emefiele’s defense efforts.
As the matter returns to trial, all eyes will be on the Federal High Court for what promises to be a rigorously contested legal showdown with broader implications for financial accountability and civil liberties in Nigeria.
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