Court Convicts Ex-NHIS Boss Olufemi Thomas for Breaching Cash Transaction Law, Acquits Him of Money Laundering

The Federal High Court in Ikoyi, Lagos, has convicted Olufemi Thomas, a former Executive Secretary of the National Health Insurance Scheme (NHIS), for violating Nigeria’s cash transaction limit law. However, the court acquitted him of all money laundering charges.

Delivering judgment, Justice Olayinka Faji cleared Thomas of five out of six counts brought against him by the Economic and Financial Crimes Commission (EFCC), ruling that the prosecution failed to prove its case beyond reasonable doubt. The judge noted that the EFCC did not thoroughly investigate the defendant’s claims and failed to establish that he had been unlawfully enriched.

As a result, the court ordered the EFCC to refund all funds seized from Thomas within 14 days, provided he pays a fine of N10 million. The fine was imposed following his conviction on the fifth count, which involved making a cash payment exceeding the legal threshold of N5 million. Justice Faji stated, “Although the money was not proven to be proceeds of illegal activity, exceeding the cash transaction limit is a violation.”

In lieu of imprisonment, Thomas is required to pay the N10 million fine and is barred from travelling abroad until the fine is fully settled.

The court also convicted a second defendant, Kabiru Sidi, for falsely claiming ownership of $2.1 million during the EFCC’s investigation. Both Thomas and Sidi were first arraigned on June 28, 2017, on an amended seven-count charge, including conspiracy, unlawful enrichment, and making false statements related to the movement of $2,198,900 allegedly in cash.

According to Dele Oyewale, EFCC’s Head of Media and Publicity, the duo was arraigned by the commission’s Lagos Zonal Directorate 1. While six charges against Thomas focused on money laundering and unlawful cash transfers in violation of the Money Laundering (Prohibition) Act, 2011 (as amended), Sidi faced a single count of making false statements.

Both defendants pleaded not guilty during their arraignment. In his closing argument, EFCC’s lead counsel, Ekele Iheanacho (SAN), maintained that Thomas failed to convincingly demonstrate how he legitimately acquired the funds, despite claiming they were proceeds from his farming business. Iheanacho argued that bypassing financial institutions in such large transactions contravenes the spirit of Section 1 of the Money Laundering Act.

Nevertheless, the court acquitted Thomas of all money laundering charges. The EFCC has since expressed its intention to appeal the verdict.