Emefiele Trial: Alleged $6.2 Million Fraudulent Withdrawal Pushed CBN Dollar Account into Negative Balance, Witness Tells Court

The trial of former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, continued on Friday at the Federal Capital Territory (FCT) High Court in Abuja, with a prosecution witness alleging that a controversial $6.23 million withdrawal from the apex bank left one of its special dollar accounts in a negative balance of over N2.858 billion.

The 15th prosecution witness, Jim Osayande Obazee, who served as the Federal Government’s Special Investigator into the CBN and related government entities, made the disclosure while testifying before Justice Hamza Muazu.

Obazee, who was appointed by President Bola Tinubu on July 28, 2023, said the withdrawal, allegedly meant for foreign election observer logistics during the 2023 general elections, was processed without the mandatory naira backing required for foreign currency transactions. According to him, the transaction resulted in a deficit of N2,858,150,196.42 in the CBN’s dollar account used for internal staff and Ministries, Departments, and Agencies (MDAs).

The Economic and Financial Crimes Commission (EFCC) is prosecuting Emefiele on an amended 20-count charge bordering on conspiracy, criminal breach of trust, forgery, obtaining by false pretences, and alleged conferment of corrupt advantage involving $6.23 million.

Led in evidence by the Director of Public Prosecutions, Rotimi Oyedepo (SAN), the witness stated that the unusual transaction should have immediately triggered internal scrutiny by the CBN Governor and the bank’s Chief Accounting Officer because of the significant negative balance it created.

Obazee further testified that the funds were released from the CBN’s Abuja branch on February 3, 2023, without complete documentation identifying the recipient. He added that the transaction ought to have appeared in the bank’s audited financial statements and should have been detected by both the internal audit department and external auditors, Ernst & Young.

According to the witness, the CBN’s Bank Verification Number (BVN) portal was reportedly inactive for more than a month before the withdrawal, making it impossible for anyone collecting the money to undergo the required identity verification process.

He maintained that such an irregular transaction should not have escaped the attention of senior management, insisting that an experienced banker such as Emefiele should have questioned the discrepancies.

Obazee told the court that his investigative team uncovered the transaction while examining weaknesses in the CBN’s internal control systems and interviewing members of the bank’s audit department.

He explained that the withdrawal followed a letter from former President Muhammadu Buhari authorising the release of funds for election observer logistics. A subsequent letter from former Secretary to the Government of the Federation, Boss Mustapha, introduced Jibril Abubakar as the person authorised to collect the money. Another internal approval from the Director of Banking Supervision reportedly directed the Abuja branch controller to release the funds.

The witness also alleged that the CBN official who processed the payment documents was transferred to the Governor’s Office just 56 days after the transaction without following standard administrative procedures.

According to Obazee, investigations found no evidence that the money reached any foreign election observer mission or provided any benefit to either the Federal Government or the CBN.

“The money was withdrawn, but there is no record showing it got to the intended beneficiaries,” he told the court.

He further stated that the failure to question the negative account balance suggested that the former CBN Governor was aware of the transaction, arguing that such a withdrawal could not have been completed without the governor’s approval.

The witness also revealed that part of the money had been recovered from Bashir Maishanu, who allegedly confessed to involvement and refunded $856,500 to the investigative panel. He expressed the view that Maishanu should also face prosecution alongside Emefiele.

Obazee added that former SGF Boss Mustapha, whom he personally interviewed, could not explain why the $6.23 million transaction was omitted from his official handover notes in May 2023. He also suggested that other officials, including members of the CBN Board and the Abuja Branch Manager, should have been investigated and charged.

During cross-examination by defence counsel, Matthew Burkaa (SAN), the witness acknowledged that criminal charges had already been filed against Emefiele in September 2023 before he was officially directed in December 2023 to investigate and identify possible offences.

He also confirmed that every individual interviewed during the investigation, including Emefiele, denied involvement or knowledge of the disputed transaction. Emefiele was interviewed while in custody at the Kuje Correctional Centre.

Justice Hamza Muazu ruled during proceedings that the witness, not being a forensic document examiner, was not qualified to authenticate signatures appearing on documentary exhibits presented before the court.

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The court subsequently adjourned the case until October 20, 2026, for the adoption of final written addresses. Defence counsel also informed the court of his intention to file a no-case submission on behalf of the former CBN Governor.