The Federal Government has officially lodged a notice of appeal challenging the judgment of the Federal High Court in Lagos that acquitted the former Executive Secretary of the National Health Insurance Scheme (NHIS), Olufemi Thomas, of money laundering allegations.
According to documents obtained by our correspondent, the notice of appeal was filed at the Lagos Division of the Court of Appeal and spans 28 pages. The appeal outlines 11 grounds on which the government disputes the ruling delivered by Justice Olayinka Faji.
In his July 24 verdict, Justice Faji discharged and acquitted Thomas on five out of six counts brought by the Economic and Financial Crimes Commission (EFCC), concluding that the commission had not proven its case beyond a reasonable doubt. He noted that the EFCC failed to thoroughly investigate several claims presented by the defendant, particularly relating to the origin of the contested funds. As a result, the judge found no basis to establish the alleged unlawful enrichment.
Additionally, the court ordered the EFCC to return the funds it had seized from Thomas within 14 days, contingent on the payment of a ₦10 million fine. This fine was imposed based on count five, in which Thomas was found guilty of making a cash payment that surpassed the ₦5 million legal threshold, thus violating anti-money laundering regulations.
Dissatisfied with the court’s findings, EFCC counsel, Senior Advocate of Nigeria Ekele Iheanacho, maintained that the trial judge committed a legal error by relying on what he described as “imaginary and fanciful doubt” to conclude that the prosecution did not meet the burden of proof for counts 1, 2, 3, and 7 of the amended charge.
The EFCC argued that it had clearly demonstrated how Thomas laundered large sums of money by showing a significant rise in his income during and after his time in public service. The agency claimed that the former NHIS boss failed to provide a consistent or credible explanation for the source of his wealth, and that both oral and documentary evidence presented in his defense were conflicting.
The commission stated that it had conducted an extensive investigation into both the public and private financial dealings of Thomas. It further pointed to a section of the Economic and Financial Crimes (Establishment) Act which places the burden of proof on any accused person to explain wealth that is not commensurate with their known sources of income. In this case, the EFCC noted that Thomas failed to present a reasonable justification for the $2,198,000 in question.
EFCC’s submission also challenged the trial court’s refusal to issue a forfeiture order for the funds in question. It argued that the trial judge ignored the unchallenged evidence showing that Thomas’ farm had no tax records and that he paid no income tax outside of his earnings from public office. The agency contended that this financial opacity was indicative of illicit financial flows.
Additionally, the EFCC insisted that Thomas should not be permitted to benefit from what it described as “illegality,” and faulted the lower court for not exercising its discretion to confiscate the contested funds for the federal government.
The anti-corruption body has now asked the appellate court to overturn the part of the ruling that allowed Thomas to reclaim the $2.1 million and to issue an order formally forfeiting the funds to the Nigerian government.
What You Should Know
Olufemi Thomas, once the Executive Secretary of NHIS, was accused by the EFCC of laundering over $2.1 million. Although the Federal High Court cleared him of most charges, the EFCC contends that Thomas couldn’t provide a reasonable explanation for his wealth and failed to pay taxes on alleged private income.
The agency believes the ruling overlooked substantial evidence and has taken the case to the Court of Appeal. This development underscores ongoing tensions between judicial discretion and prosecutorial efforts in Nigeria’s anti-corruption landscape.
The final ruling could shape how future cases involving unexplained wealth are judged.
