Published by Osasere Edomwonyi Ikpoba
The Lagos State High Court sitting in Tapa has sentenced five individuals to seven years’ imprisonment each for their involvement in a N117.7 million fraud perpetrated against Chi Limited, the renowned manufacturer of Chivita and Hollandia beverages. Justice Kudirat A. Jose handed down the verdict on Thursday, September 3, 2026, following their prosecution by the Lagos Zonal Directorate 1 of the Economic and Financial Crimes Commission (EFCC). The convicts—Yinka Salawu, Joshua Oluremi Daramola, Raji Ahmed, Afolabi Israel Olusegun, and Muraina Olanrewaju Abdullahi—were found guilty on three counts of a six-count charge bordering on conspiracy to obtain money by false pretense, obtaining money by false pretense, and forgery. The court ordered each convict to serve seven years without the option of a fine and mandated them to restitute the full amount defrauded from the company, marking a significant victory in Nigeria's ongoing battle against white-collar crime.
The case dates back to 2009, when the defendants, acting in concert with others still at large, allegedly obtained N81,359,922 from Chi Limited under the false pretense that the money was payment for goods and services they had supplied to the company. According to the EFCC, the goods and services were never delivered, and the money was never refunded. The charge sheet revealed that the convicts operated under aliases and corporate entities, including Yinka Salawu, who also went by Mr. Yinka James Christopher, and his wife, Tinuke Olayinka Salawu, who was listed as Mrs. Yinka James Christopher. Others involved in the scheme included Ogbeide Kingsley Stevenson, Sule Tijani Adebayo, Fred Esumike, and Ismaila Kareem, who traded under the name and style of Ismak Ola Nig. Ltd. Several of these accomplices remain at large, and the EFCC has indicated that its investigation into the broader network is ongoing.
During the trial, the prosecution, led by counsel M.S. Owede, presented a formidable case against the defendants. A total of 17 witnesses were called to testify, including officials from the EFCC, the Nigeria Police Force, various commercial banks, and representatives of Chi Limited. The prosecution also tendered several documentary exhibits to substantiate the allegations, establishing a clear paper trail of the fraudulent transactions. In her ruling, Justice Jose found the first, fourth, fifth, sixth, and seventh defendants guilty on counts one, two, and three. However, the second, third, and eighth defendants were discharged and acquitted, suggesting that the prosecution's case against them did not meet the threshold of proof beyond a reasonable doubt.
Following the convictions, prosecution counsel Owede urged the court to invoke Section 11 of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006, and order the convicts to restitute Chi Limited with the sums contained in counts two and three, which totaled N117,755,061. Owede also requested the court to order the sale of properties belonging to the first convict, Yinka Salawu, with the proceeds paid to Chi Limited, or alternatively, to have the properties forfeited to the company. Justice Jose, relying on Section 297 of the Administration of Criminal Justice Law, granted the restitution order, directing the convicts to repay the full amount to Chi Limited. The judge further ruled that any monies already paid by the convicts would be deducted from the total restitution sum.
In her sentencing, Justice Jose handed down seven years' imprisonment to each of the five convicts without the option of a fine. She also ruled that the period each convict had already spent in custody would be deducted from the seven-year terms, ensuring that they receive credit for time served. The judge's decision to impose a custodial sentence without the option of a fine underscores the gravity of the offense and sends a strong deterrent message to would-be fraudsters. The EFCC, in a statement released on Friday, described the judgment as a landmark victory in its efforts to combat financial crimes and hold perpetrators accountable, regardless of how long it takes to bring them to justice.
Chi Limited, the victim of the fraud, is one of Nigeria's most prominent food and beverage companies, known for its flagship products, Chivita and Hollandia. The company has been a major player in the Nigerian economy for decades, and the fraud, which dates back to 2009, represents a significant financial loss that impacted its operations. The successful prosecution of the case demonstrates the resilience of Nigeria's legal system and the EFCC's commitment to pursuing justice even for crimes committed years ago. The case also highlights the importance of robust corporate governance and due diligence in preventing fraud, as the defendants were able to perpetrate the scheme by exploiting gaps in the company's payment verification processes.
The EFCC has been at the forefront of Nigeria's anti-corruption crusade, securing numerous convictions in recent years. The agency's Lagos Zonal Directorate 1, which prosecuted this case, has been particularly active in pursuing financial crimes, often involving complex fraud schemes, money laundering, and advance fee fraud. The conviction of the five individuals in the Chi Limited case is a testament to the EFCC's investigative capabilities and its determination to recover stolen funds and bring perpetrators to justice. The agency has also been leveraging technology and international cooperation to track down fugitives and trace illicit financial flows, further strengthening its ability to combat economic and financial crimes.
The case also sheds light on the broader issue of advance fee fraud and other related offenses in Nigeria, which have plagued the country's reputation and undermined investor confidence. The Advance Fee Fraud and Other Fraud Related Offences Act, 2006, under which the defendants were prosecuted, was enacted to provide a legal framework for addressing these crimes and imposing severe penalties on offenders. The seven-year prison sentences handed down in this case reflect the seriousness with which the judiciary treats such offenses and serve as a warning to others who may be tempted to engage in similar fraudulent activities.
As the five convicts begin their prison terms, the EFCC has assured the public that it will continue to pursue other individuals involved in the scheme who are still at large. The agency has also reiterated its commitment to ensuring that all perpetrators of financial crimes are brought to book, regardless of their status or connections. The restitution order issued by the court is a significant step towards recovering the stolen funds and providing some measure of justice to Chi Limited, which suffered substantial financial losses as a result of the fraud. The case serves as a powerful reminder that crime does not pay and that the long arm of the law will eventually catch up with those who seek to enrich themselves through illegal means.
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