Court Acquits Aliyu Abubakar, Seven Others in Malabu Oil Money Laundering Case

The Federal High Court in Abuja has discharged and acquitted businessman Aliyu Abubakar and seven other defendants in cases involving alleged money laundering, fraud and the diversion of funds linked to Malabu Oil and Gas Limited.

Justice Inyang Ekwo delivered the judgments on Thursday, holding that the Economic and Financial Crimes Commission (EFCC) failed to prove the allegations against the defendants.

In one of the cases, the court discharged Abubakar, Malabu Oil and Gas Limited and six other companies over allegations relating to the handling of funds from the controversial Oil Prospecting Licence 245 (OPL 245) transaction.

The EFCC had alleged that the defendants were involved in the diversion of about 875.74 million dollars linked to the oil block deal. It also accused Malabu Oil and other parties of receiving approximately 401.54 million dollars transferred from a Federal Government account into the company’s account with First Bank of Nigeria.

The commission further alleged that the transaction involved the unlawful waiver of taxes, royalties and other government revenue due from the agreement involving Malabu, the Federal Government and international oil companies.

The defendants denied the allegations and pleaded not guilty.

In his ruling, Justice Ekwo held that the evidence presented by the prosecution did not establish the defendants’ involvement in the alleged offences.

The judge also faulted the continuation of the prosecution despite a 2018 directive from the Office of the Attorney-General of the Federation advising against proceeding with the case on the grounds of insufficient evidence.

The court consequently discharged and acquitted the defendants.

In a separate case, the court also dismissed charges against Abubakar, who was the sole remaining defendant following the earlier acquittal of former Attorney-General of the Federation and Minister of Justice, Mohammed Bello Adoke.

Adoke was discharged on April 19, 2024, after the court upheld his no-case submission, ruling that the EFCC had failed to establish a sufficient basis for him to enter a defence.

The separate proceedings had included allegations that Abubakar made cash payments to Adoke in 2013 and that certain transactions breached provisions of the Money Laundering Prohibition Act.

The defendants denied wrongdoing, and the latest judgments bring the cases covered by the rulings to an end at the trial court.

OPL 245, one of Africa’s major oil blocks, has been at the centre of prolonged legal proceedings in Nigeria and abroad over its ownership, the transfer of rights and payments associated with the transaction.

The latest judgments mark a significant development in the Nigerian proceedings concerning the management of funds linked to the oil block.