A Federal High Court in Abuja has ordered the Central Bank of Nigeria (CBN) to freeze all transactions in 65 bank accounts linked to 12 firms and a man suspected to be involved in the manipulation of the nation’s foreign exchange market.
Justice Ahmed Mohammed gave the order while the ruling was on the ex parte motion marked FHC/ABJ/CS/979/2020, filed in the name of the Governor of the CBN and argued by former Attorney General of the Federation (AGF) and Minister of Justice, Mike Aondoakaa (SAN).
Justice Mohamed, in the ruling on Wednesday, granted the CBN 90 days, in the first instance, to investigate the activities of firms that the CBN Governor alleged were involved in the importation of goods not eligible for foreign exchange.
The CBN Governor further alleged that the activities of the firms and an individual identified as Adekunle Olusola Alonge are “the cause of the current volatility and imbalance in the foreign exchange regime in Nigeria with the attendant negative impact on the economy.”
In the ruling, a copy of which The Nation sighted late on Friday, Justice Mohammed said: “An order is made freezing all transactions in the bank accounts of the defendants/respondents listed on the motion paper, for a period of 90 days in the first instance, pending the outcome of the investigation currently being conducted by the Central Bank of Nigeria.
“It is also directed that, if the applicant could not conclude the investigation and its inquiry within the 90 days given by the court, it can seek an extension of the order upon an affidavit filed to show the extent of the investigation and the need for the court to extend the period.
“It is further ordered that any person who is affected by this freezing order may apply to the court to be heard in this matter.”
Justice Mohammed then adjourned till November 25 this year for a report of investigation.
Listed in the motion as the owners of the affected accounts are Adekunle Olusola Alonge, Armadillo Integrated Services, FTM Capital Management Limited, Sonora Asset Management Limited, Sonora Capital & Inv Ltd, Sonora Capital Investment Limited, Sonora Capital & Investment Limited and Sonora Capital and Investment Limited.
Others are Sonora Capital Investment Limited, Sonora Consult, Sonora Energy & Allied Services Limited, Sonora Energy and Allied Services Limited, VIP Impress Hollywood Limited and Vlisco Nigeria Limited.
The accounts are said to be held in Zenith Bank, Guaranty Trust Bank, FCMB, United Bank for Africa (UBA), Access Bank, First Bank, Skye Bank, Heritage Bank, Sterling Bank, Union Bank, Ecobank, StanbicIBTC and FSDH.
Aondoakaa had, while arguing the motion, said the affected firms belonged to some Chinese nationals, who were able to access foreign exchange with the invention of the highest levels of government in Nigeria and China with the promise to engage in the production of textile materials in Nigeria.
He stated that after accessing the foreign exchange, the firms allegedly resorted to smuggling textile materials from neighbouring countries into Nigeria.
The ex-AGF said the investigation being conducted by the CBN was in collaboration with authorities of the Benin Republic, which he said were also conducting similar investigations.
Aondoakaa had prayed the court for 180 days, but had 90 days granted in the first instance by the judge.
A Deputy Manager in the Governor’s Department, CBN, Innocent Okocha, stated, in a supporting affidavit, that “the investigation being carried out concerns what has been discovered to be serious infractions by the defendants/respondents in connection with some transactions and non-documentation by the defendants/respondent in violation of the CBN circular TED/FEM/GEN/01/010 on “Inclusion of some imported goods and services on the list of items not valid for foreign exchange in Nigeria’s Foreign Exchange Market” of June 23, 2015.
“More specifically, there is a grave allegation that the defendants/respondents are engaged in accessing/procuring of foreign exchange from the Nigerian Foreign Exchange Market in furtherance of the smuggling/importation of goods which fall under goods and services prohibited under the circular referenced in paragraph (b) above.
“The aforesaid transactions undertaken by the defendants/respondents using their bank accounts can cause significant financial loss to members of the public if left unchecked.
“A freezing order of this honourable court in respect of the defendants/respondents’ aforesaid accounts would also enable the CBN to investigate the activities of the defendants/respondents to a logical conclusion.
“The activities of the defendants/respondents being investigated are the cause of the current volatility and imbalance in the foreign exchange regime in Nigeria, with the attendant negative impact on the economy.”
