The Enugu Division of the Court of Appeal has affirmed the seven-year prison term handed down to a former Guaranty Trust Bank (GTB) staff member, Onyekachi Nwosu, who was convicted for his involvement in a fraudulent loan scheme totaling over N50 million. The appellate court’s ruling, delivered by Justice Zainab Abubakar, was disclosed in an official statement issued by the Economic and Financial Crimes Commission (EFCC) on Thursday.
Nwosu had earlier been found guilty and sentenced by a Federal High Court in 2021 after facing a nine-count charge relating to forgery and obtaining money under false pretences. He had appealed the verdict, hoping for a reversal. However, the Appeal Court’s judgment ultimately confirmed the trial court’s decision on one critical count, securing a partial but significant victory for the EFCC.
How the Fraud Was Perpetrated
According to the EFCC’s findings, Nwosu, who served as an account officer at GTB, orchestrated a scheme to defraud the bank and a client using forged documentation. He falsely presented a document titled “An Application to Mortgage, Consent to Mortgage and Tripartite Legal Mortgage” to the bank. This fake document purportedly showed that a woman, Mrs. Adebimpe Foluke, had pledged her property as collateral for a loan meant for Floxy Aluminum Odiofele Products Limited—a company owned by one Anyaso Chinedu.
The EFCC discovered that Nwosu misled the bank into approving a N50 million loan using the falsified mortgage documents. Once the loan was disbursed to the company’s account, he withdrew N40 million for personal gain.
The Key Charge That Held Up in Court
Out of the nine charges filed against him, Count 9 turned out to be the most damning. It accused Nwosu of knowingly processing and facilitating the fraudulent N50 million loan and personally benefiting from N40 million of the disbursed funds. The count read:
“That you, Onyekachi Nwosu, sometime in September 2010 in Enugu within the jurisdiction of the Federal High Court of Nigeria, while being an officer of Guaranty Trust Bank and connected with the grant of a loan, knowingly processed and facilitated the grant of a loan of Fifty Million Naira (N50,000,000.00) to Floxy Aluminum Odiofele Products Limited, received the sum of Forty Million Naira (N40,000,000.00) as personal gratification out of the said loan after it was granted, thereby committing an offence contrary to Section 15(1)(a)(iii) and punishable under Section 16(1)(a) of the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act Cap. F2 Laws of the Federation of Nigeria.”
During the trial, the EFCC presented four witnesses and submitted 16 exhibits to establish its case. The trial judge, Justice R. O. Dugbo Oghoghorie, ruled that the prosecution had proven its case beyond a reasonable doubt and subsequently sentenced Nwosu to seven years in prison.
Appeal and Final Verdict
Nwosu filed an appeal seeking to overturn the trial court’s decision. He argued that the lower court had erred in its judgment and prayed for all convictions to be dismissed. However, the EFCC maintained that the conviction was sound, asserting that their evidence, including Nwosu’s own confession, was sufficient to sustain the verdict.
In the judgment delivered by Justice Zainab Abubakar and supported unanimously by the three-man appellate panel, the Appeal Court upheld Nwosu’s conviction specifically on Count 9. The court found that Nwosu’s admission of receiving N40 million from the loan proceeds effectively sealed his guilt.
“The appellant has admitted that he collected N40 million from the loan sum, which has proved the last ingredient of the offence against the appellant,” Justice Abubakar stated.
“The conviction of the appellant on Count 9 of the charge by the trial court was in order, in my humble view.”
However, the Appeal Court set aside Nwosu’s convictions on Counts 1 through 8, meaning he was effectively cleared of the other allegations. Yet, the upholding of Count 9 alone was sufficient to affirm the original sentence of seven years’ imprisonment.
EFCC’s Reaction and Significance of the Judgment
The EFCC has hailed the judgment as a reaffirmation of its commitment to fighting financial crimes, especially within the banking sector. The case underscores the dangers posed by internal banking fraud and the importance of regulatory vigilance. It also highlights the legal system’s role in ensuring that financial institutions are not undermined by insiders entrusted with critical responsibilities.
Nwosu’s conviction sends a stern warning to bank officials and financial services employees who may be tempted to abuse their positions for personal enrichment. The ruling demonstrates that even partial convictions can carry significant legal consequences when the offence involves large sums and clear evidence of misconduct.
Background: Financial Malpractice in Nigerian Banking
Nigerian banks have faced a series of internal fraud cases over the past decade, often involving the use of forged documents, insider access, and manipulation of account processes. Regulatory agencies such as the EFCC and the Central Bank of Nigeria (CBN) have emphasized the need for stronger internal controls and ethics training for banking staff.
In recent years, the EFCC has secured several convictions against bank employees, indicating a broader crackdown on financial malpractice. This particular case stands out due to the size of the loan involved and the direct financial gain accrued by the convicted employee.
Looking Ahead
As Nwosu serves his seven-year sentence, the case remains a critical reference point in Nigeria’s fight against financial crimes, particularly within the banking industry. It also demonstrates the resilience of the legal system in upholding convictions where the evidence supports guilt beyond a reasonable doubt—even if other charges are overturned on appeal.
