The Federal High Court in Ikoyi, Lagos, has convicted Dr. Olufemi Thomas, a former Executive Secretary of the National Health Insurance Scheme (NHIS), for violating Nigeria’s cash transaction limit law. The court fined him ₦10 million but cleared him of money laundering charges.
Justice Olayinka Faji ruled that the Economic and Financial Crimes Commission (EFCC) failed to prove that Thomas laundered money. The judge stated that the EFCC did not verify key claims made by Thomas and presented no evidence that the funds were illegally acquired.
As a result, the court ordered the EFCC to return all seized funds within 14 days—once Thomas pays the fine.
Although the court found no link to illegal activity, it convicted Thomas for making a cash transaction above ₦5 million, which breaches the Money Laundering (Prohibition) Act.
“The money wasn’t tied to any crime,” said Justice Faji, “but paying above the allowed cash limit breaks the law.”
Instead of a jail term, Thomas must pay a ₦10 million fine. The court also placed a travel restriction on him until he clears the fine.
The court also convicted Kabiru Sidi, the second defendant. He had falsely claimed ownership of $2.1 million during the EFCC’s investigation.
The EFCC first arraigned both men in 2017 on a seven-count charge. The charges included conspiracy, false statements, and moving large amounts of cash without proper documentation.
EFCC lawyer Ekele Iheanacho (SAN) argued that Thomas didn’t prove how he earned the money legally. He claimed that transactions like this should go through banks, not cash.
“The law requires these large financial dealings to happen through financial institutions. Otherwise, there’s no proper tracking,” Iheanacho told the court.
He also argued that Thomas’s explanation—farming income—lacked proper evidence.
Despite these claims, the judge dismissed the money laundering charges. He said the EFCC failed to provide convincing proof.
The EFCC expressed dissatisfaction with the ruling and announced plans to appeal.
Dele Oyewale, Head of Media and Publicity at the EFCC, confirmed the agency’s intention. He stated that the commission remains committed to enforcing financial laws and ensuring accountability.