The trial of former Godwin Emefiele took another dramatic turn on Friday as the Federal Capital Territory High Court in Abuja heard that an alleged fraudulent withdrawal of $6.23 million from the Central Bank of Nigeria (CBN) pushed one of the apex bank’s dollar accounts into a negative balance of N2.858 billion.
The testimony was given by the 15th prosecution witness (PW15), Jim Osayande Obazee, the Federal Government’s Special Investigator appointed by President Bola Ahmed Tinubu to investigate the CBN and related government business entities.
Obazee testified before Justice Hamza Muazu that the funds, allegedly earmarked for foreign election observer missions during the 2023 general elections, were withdrawn from the CBN’s Abuja branch on February 3, 2023, without the mandatory naira backing required for foreign currency transactions.
According to him, the transaction forced the CBN’s dollar account used for internal staff and Ministries, Departments and Agencies (MDAs) into a deficit of N2,858,150,196.42, a discrepancy he said should have immediately attracted the attention of the then CBN Governor and the bank’s chief accounting officer.
The Economic and Financial Crimes Commission is prosecuting Emefiele on an amended 20-count charge bordering on conspiracy, conferment of corrupt advantage, criminal breach of trust, forgery and obtaining by false pretences involving $6.23 million.
Witness Alleges Serious Internal Control Failures
Led in evidence by the Director of Public Prosecutions of the Federation, Rotimi Oyedepo, SAN, the witness told the court that investigators uncovered glaring weaknesses in the CBN’s internal control system during their probe.
He alleged that the cash was released without proper documentation identifying the official who collected it and argued that the unusual transaction should have been reflected in the CBN’s audited financial statements and internal audit reports.
Obazee further stated that the transaction ought to have been detected during the bank’s external audit conducted by Ernst & Young, as well as through the CBN’s internal audit mechanisms.
He also disclosed that the CBN’s Bank Verification Number (BVN) portal was reportedly non-functional for more than a month before the withdrawal, making it impossible for any recipient to complete the required identity verification before receiving such a large amount of cash.
“Nobody will allow you leave the bank until the account is balanced,” the witness told the court, insisting that the transaction contained obvious discrepancies that should have been detected.
Letters Allegedly Authorised Payment
The special investigator testified that the investigation uncovered a chain of official correspondence authorising the release of the funds.
According to him, a letter from former President Muhammadu Buhari instructed former Secretary to the Government of the Federation, Boss Mustapha, to arrange payment for election observer logistics.
He added that Mustapha subsequently wrote to Emefiele introducing one Jibril Abubakar as the individual authorised to receive the money on behalf of the Federal Government.
Obazee further claimed that another approval from the CBN’s Director of Banking Supervision directed the Abuja Branch Controller to release the funds to the named individual.
‘Funds Never Reached Intended Beneficiaries’
The witness maintained that investigations found no evidence that the money eventually reached any foreign election observer mission.
According to him, the funds left the CBN vault without delivering any economic benefit to either the Federal Government, the CBN or the intended beneficiaries.
“The money was actually taken, but did not flow to the supposed beneficiaries,” he testified, adding that investigators found no records showing that election observers received the funds.
He also alleged that the CBN official who processed the payment documents was transferred to the office of the CBN Governor just 56 days after the transaction without following established administrative procedures.
Part of Funds Recovered
Obazee informed the court that investigators recovered $856,500 from one Bashir Maishanu, who allegedly admitted involvement in the transaction and returned the money to the investigative team.
He argued that Maishanu, alongside several other officials, including members of the CBN Board and the Abuja Branch Manager, should also face prosecution.
The witness further revealed that former SGF Boss Mustapha allegedly could not explain why the controversial transaction was omitted from his official handover notes after leaving office in May 2023.
Defence Challenges Testimony
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 received a presidential directive in December 2023 to investigate and identify possible offences connected with the case.
He also confirmed that everyone interviewed during the investigation, including Emefiele, denied involvement or knowledge of the alleged withdrawal.
Obazee disclosed that Emefiele was interviewed while in custody at the Kuje Correctional Centre.
Justice Muazu also ruled during proceedings that the witness, not being a forensic document examiner, could not authenticate signatures appearing on documents tendered before the court.
At the close of proceedings, the court adjourned the matter until October 20, 2026, for the adoption of final written addresses.
Defence counsel informed the court that the defence intends to file a no-case submission, asking the court to dismiss the charges without requiring Emefiele to open his defence.
It should be noted that the allegations remain before the court, and Emefiele has pleaded not guilty to the charges. The court will determine the merits of the case after considering all evidence presented by both the prosecution and the defence.
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A prosecution witness in Godwin Emefiele’s trial told an Abuja High Court that the alleged fraudulent withdrawal of $6.23 million pushed a CBN dollar account into a N2.86 billion deficit, exposing major internal control failures.
Godwin Emefiele trial, CBN fraud case, EFCC prosecution, $6.2 million withdrawal, Jim Obazee testimony, Abuja High Court, CBN investigation, Nigeria corruption case, election observer funds, CBN negative balance.
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