Justice Ayokunle Faji of the Federal High Court sitting in Ikoyi, Lagos, on Thursday, July, 24, 2025, convicted the duo of Dr. Olufemi Martins Thomas, a former Executive Secretary, National Health Insurance Scheme, NHIS, and one Kabiru Sidi, a Bureau De Change Operator, for $2,198,900.00 ( Two million, One Hundred and Ninety Eight Thousand, Nine Hundred United States Dollars) fraud.
Thomas was arraigned alongside Sidi on an amended seven-count charge bordering on money laundering to the tune of $2,198,900.00 brought against them by the Lagos Zonal Directorate 1 of the Economic and Financial Crimes Commission, EFCC.
Six of the counts against Thomas bordered on money laundering and transferring, in cash, proceeds of unlawful activities, contrary to the provisions of the Money Laundering (Prohibition) Act, 2011 as amended.
The second defendant, however, was prosecuted only on count six bordering on making false statements to an official of the EFCC.
The charge against Thomas reads: “That you, Dr. Martins Oluwafemi Thomas (a.k.a Dr. Ike), the former Executive Secretary of the National Health Insurance Scheme, on or about the 3rd of July, 2015 at Lagos, within the jurisdiction of this Honourable Court, procured Mrs. Femi Thomas to disguise the unlawful origin of the sum of $2, 198, 900 (Two million, One Hundred and Ninety-eight Thousand, Nine Hundred United States Dollars) and you thereby committed an offence contrary to Section 18 and punishable under Section 15(2) (a) and (3) of the Money Laundering (Prohibition) Act, 2011 (as amended by Act No. 1 of 2012).”
The charge against Kabiru reads: That you, Kabiru Sidi on or about the 15th of July, 2015 at the office of Economic and Financial Crimes Commission, 15 A Awolowo Road, Ikoyi Lagos within the jurisdiction of this Honourable Court made a false statement to Afeez Mustapha, an investigating officer with the Economic and Financial Crimes Commissionto the effect that you gave over Two Million United States dollars to Bamidele Ibiteye and you thereby committed an offence contrary to Section 39(2) (b) and punishable under Section 39(2) (c) of the Economic and Financial Crimes Commission (Establishment) Act, 2004.”
They pleaded “not guilty” to the charge, thereby leading to their full trial.
At the last adjourned sitting on Thursday, May 29, 2025, the prosecution counsel, Ekele Iheanacho SAN, in his final written addresses, dated May 5 and 9, 2025, submitted that “In line with the charge, the prosecution called six witnesses, and the defendant made a no-case submission, which was overruled and overruled by the Appellate Court on the grounds that the prosecution had established a prima facie case against the defendant.
“The defendant entered his defence because the law required him to show how he acquired the funds legitimately. Part of his evidence was that he made the funds heavily from his farming businesses. The evidence of his farming was contained in his financial statement.
While closing his argument, he had also submitted that “This is a case of money laundering, where the issue of concealment of transaction is paramount and that is why the law requires such transactions to go through financial institutions so that there will be a trial. Any application that suggests otherwise will defeat the basis of Section 1 of the Money Laundering Act”.
He had, therefore, urged the court to discountenance the submissions of the first and second defendants and convict them as charged.
Delivering judgment today, Justice Ayokunle Faji ruled that the anti-graft agency failed to prove beyond a reasonable doubt the allegations of conspiracy, unlawful enrichment, and making false statements contained in counts 1, 2, 3, 4, and 7 of the amended charge.
However, Dr Thomas was convicted on count five, relating to a cash transaction exceeding the N5 million threshold allowed by law for individual cash dealings.
Justice Faji held that the EFCC did not adequately investigate claims made by the defendant during the trial and failed to establish that the funds in question were proceeds of unlawful enrichment.
“The transaction in count five is only above the N5 million threshold. There is no proof it was from the proceeds of crime,” the judge ruled.
Consequently, the court ordered the EFCC to return within 14 days all funds previously seized from Dr Thomas, stating that the agency had no legal basis to continue holding the money.
However, the release is contingent upon Thomas paying a N10 million fine imposed as a penalty for the single count on which he was convicted. He was also barred from travelling outside the country until the fine was fully paid.
The second defendant, Sidi, was found guilty of making a false statement to an investigating officer with the EFCC and sentenced to a fine of N100,000.00
Justice Faji, however, discharged Thomas on counts one, two, three, four and seven of the charge.
