The Court of Appeal in Lagos has ruled in favour of Sterling Bank Plc in a legal battle against the Economic and Financial Crimes Commission (EFCC) over an alleged illegal foreign exchange transaction, ordering the reversal of a previous forfeiture of N71 million.
The appellate court, in a unanimous decision delivered on Wednesday, overturned a lower court’s ruling that had previously granted an interim forfeiture of the said funds to the Federal Government. The money had been confiscated following the EFCC’s suspicion that it was linked to an unlawful FX deal during a clampdown on banks allegedly flouting Central Bank foreign exchange guidelines.
Sterling Bank, however, maintained its innocence and challenged the forfeiture, asserting that the funds in question were legitimate and duly accounted for through transparent banking operations. The bank also accused the anti-graft agency of acting on flawed assumptions without substantial evidence of wrongdoing.
In its judgment, the Court of Appeal held that the EFCC failed to provide adequate proof linking the N71 million to criminal activity, thereby nullifying the grounds for forfeiture. The court further criticised the initial forfeiture as a breach of due process and the bank’s right to fair hearing.
Legal experts say the ruling not only vindicates Sterling Bank but also raises fresh questions about the EFCC’s handling of asset forfeiture cases, particularly in relation to Nigeria’s banking sector.
Neither the EFCC nor Sterling Bank has officially responded to the ruling as of press time, but the verdict is expected to set a precedent for similar financial disputes in the future.
