NIRSAL: CBN asks the Court to reject the FACC for the decline against the collateral property of N2.7 billion

The Central Bank of Nigeria (CBN) Has Urged the Federal High Court in Abuja to Dismiss to Faks Case Bruught by the Economic and Financial Crimes Commission (EFCC) Against a N2.7 Billion Property (Located at Plot 781, Cadastal Zone 001, Karmo District) Used AS COLLATERAL TO TO Secure to Loan from the Apex Bank Through the Nigeria Incentive-Based Risk sharing system for agricultural lending (Nirsal).

The CBN lawyer, Joseph Abah, told Justice Emeka Nwite on Thursday that the Apex bank had presented documents of the court that tried to join the EFCC case and discuss for its dismissal absolutely through the counter-offavit proposal and written address to show the cause.

Nairametrics reports that the legal dispute was born after the EFCC, on August 8, 2024, presented a part of the motion of origin which required the approval of the Court for the attack/temporary decline of the plot 781, Cadastral Zone 001, Karmo District, Abuja.

The Feccc legal team also sought an order of the Court who authorized the anti-Innesto agency to appoint a person or a competent company to manage the activity temporarily dedicated to the federal government pending the conclusion of the investigations and the possible pursuit of Toks Properties Limited.

Justice Nwite had, on September 3, 2024, granted the request for the FCC to prohibit any provision, lease, sale or mortgage of the property in line with the Agency’s demand.

At the hearing resumed on Thursday, the CBN lawyer and another lawyer representing Salis Venlated Homes Limited said they had submitted the applications separately to join as parts (defendants) in the case of the EFCC forfeiture.

• In the judicial declaration of the CBN seen by Nairametrics, the Apex bank claimed that it is responsible for monitoring and regulating banks and all bank activities in Nigeria.
• The CBN legal team, including Abah, declared that in 2020, the CBN, through Nirsal pursuant to its anchor borrowing program (ABP), granted a N3.872.882.250.00 loan to Sadolen Interworld limited to the production of financial rice.
• According to the CBN, the loan had a 12 -month tenor and was guaranteed by a third party guarantee belonging to the Toks Properties Limited lords, which served as a surety for the loan transaction.

“The aforementioned guarantee (property), which is located in the district of Karmo of the territory of the federal capital, is evaluated at N2.7 billion”, “” The CBN said.

The APEX bank added that during the loan transaction, the surety performed a act of legal mortgage in favor of the CBN through Nirsal and the document of the original title of the guarantee was filed and delivered to Nirsal.

In addition, the CBN explained that the surety performed a company in order not to alienate, sell or transfer the property without the prior written approval of the CBN through Nirsal.

• The Apex bank stressed it “The sum of the loan has not been downloaded and the ownership of the object remains the safety of the mortgage,“Keep that the CBN has a fair interest for the property.
• The bank, therefore, asked the Court to allow him to join the case as accused so that he could present his arguments through the counter-offavit proposal and entrust to show the cause.

The CBN has also submitted, through its sworn declaration to demonstrate the case, that the Court cannot grant an order of forfeiture on the property, since this would affect the legal and fair rights of the CBN, which maintains the right to hold the property until the loan is completely discharged.

“We urge the honorable court to resolve the only question in favor of the defendant (CBN), put aside the order of provisional decline and reject the instant case (by the FCC) due to lack of jurisdiction”, The CBN declared in its judicial documents.

Judge Emeka Nwite asked the CBN lawyer if he had served the Fuccc legal team with judicial trials, which Abah replied affirmatively.

• The EFCC legal team informed the judge that he received the CBN documents that day and would need time to present a formal response.
• The EFCC claimed that the anti-innesto agency simply tried to preserve the property pending the outcome of its investigations on the financial crimes against the parties involved.
• After listening to both sides, judge Nwite updated the case to May 21, 2025, for the hearing of all suspended questions relating to the ownership temporarily dedicated to the federal government.