The Lagos State Government under Governor Babajide Sanwo-Olu has come under fresh scrutiny by the Economic and Financial Crimes Commission (EFCC) following revelations that part of the $13 million recently forfeited to the Federal Government was traced to contractors linked to the state, deepening concerns over possible financial impropriety in one of Nigeria’s most economically strategic administrations.
Multiple officials familiar with the investigation confirmed that the EFCC expanded its probe after uncovering financial trails indicating that significant portions of the funds associated with businesswoman Aisha Achimugu and her company, Oceangate Engineering Oil & Gas Limited, originated from contractors executing projects for the Lagos State Government. While details of the contractors involved and the exact nature of the transactions remain undisclosed, sources disclosed that the identities are being withheld to avoid compromising ongoing investigations.
“The facts about the origin of the funds are already public in court documents, but the full details of how a large chunk of the money was sourced from some contractors offering services to Lagos State Government, the identities of the contractors and the possible involvement of the governor and other government officials have not been disclosed in order not to jeopardise ongoing investigations,” a source familiar with the matter revealed.
The development comes on the heels of a ruling by Justice Emeka Nwite of the Federal High Court in Abuja, who ordered the permanent forfeiture of the $13 million to the Federal Government, affirming the EFCC’s position that the funds were proceeds of unlawful activities. The court held that Oceangate Engineering failed to provide credible evidence to justify the source of the funds, dismissing claims that they were derived from legitimate business earnings or gifts.
Investigators have described the financial trail as suspicious, noting that contractors linked to the Lagos State Government transferred large sums of money to Oceangate without any documented contractual or business relationship with the company. The absence of such ties has raised critical questions about the legitimacy of the transactions and whether public funds may have been diverted through unofficial channels.
According to court filings submitted by EFCC investigator Usman Aliyu, the funds were raised between March and April 2025 as part of payments toward the acquisition of oil blocks by Oceangate Engineering. The company had emerged as a successful bidder for two oil prospecting licences, Deep Offshore PPL 302 and Shallow Water PPL 3007, under conditions requiring a total payment of $37.2 million to the Federal Government. By April 2025, the company had reportedly made a $20 million part-payment, including the disputed $13 million.
The EFCC detailed how the funds were assembled through a complex network involving intermediaries, unlicensed Bureau de Change operators, and financial transactions designed to obscure their origin. According to the affidavit, one Suleiman Muhammed Chiroma was engaged to collect large sums of cash in Abuja and Lagos without passing through formal banking channels, while other agents, including Dantani Abubakar Hassan and Tirmizi Muhammed Usman, were allegedly involved in handling and transferring the funds.
Further findings indicated that over N855 million sourced from contractors working for the Lagos State Government was funneled through accounts linked to Ashrab Energy and Oil Services Limited before being converted into dollars and transferred to Oceangate’s account. In total, more than N2.4 billion was reportedly moved through these channels, raising serious concerns about the integrity of the financial system and the potential misuse of funds intended for public projects.
The EFCC maintained that the funds used by Oceangate to pay signature bonuses for the oil blocks were not proceeds of any legitimate business activity but were instead reasonably suspected to be derived from unlawful sources. Investigators also emphasised that there was no evidence of any contractual relationship between Oceangate and the contractors who transferred the funds, further undermining the company’s claims of legitimacy.
Oceangate Engineering, however, denied any wrongdoing, insisting that the funds were partly derived from legitimate business earnings and partly from lawful arrangements involving currency exchange. In an affidavit sworn by a company director, Iliya Wakil, the firm rejected allegations of conspiracy with unlicensed operators and maintained that Suleiman Chiroma was a licensed Bureau de Change agent engaged to facilitate the sourcing of foreign currency required for the transactions. The company also distanced itself from individuals and entities named by the EFCC, stating that it had no knowledge of or dealings with them.
Justice Nwite, in his ruling, rejected the company’s explanations, stating that they were not convincing and failed to establish the lawful origin of the funds. The judgment effectively validated the EFCC’s findings and marked a significant development in the case, reinforcing the agency’s anti-corruption mandate.
The controversy has also reignited scrutiny of the relationship between Governor Sanwo-Olu and Ms Achimugu, which had previously drawn public attention. Reports had earlier surfaced detailing the governor’s attendance at Achimugu’s 50th birthday celebration in Grenada in January 2024, a trip that sparked debate over official conduct and transparency. At the time, the governor stated that his travel was for economic engagements, without directly addressing his presence at the event.
Speculation about a possible EFCC probe into the governor had also emerged in October 2024, when reports circulated that he had filed a suit seeking protection from arrest and investigation. The Lagos State Government swiftly denied authorising any such legal action, while the EFCC also publicly stated that it was not investigating the governor at the time. However, these developments predated the transactions currently under scrutiny, leaving open questions about the evolving scope of the investigation.
Ms Achimugu herself has been at the centre of multiple controversies in recent years, including her being declared wanted by the EFCC in March 2025 over allegations of money laundering and involvement in a Ponzi scheme linked to MBA Trading and Capital Limited. Although she has not been formally charged with any offence, she was arrested in April 2025 upon her return to Nigeria and has since remained under investigation.
While it remains unclear whether Governor Sanwo-Olu had any direct knowledge of or involvement in the transactions, the EFCC’s ongoing probe into the flow of funds from Lagos State contractors has raised significant questions about accountability, transparency, and oversight within the state’s financial ecosystem. Analysts warn that the case, if substantiated, could have far-reaching implications for governance and public trust, particularly in a state that plays a central role in Nigeria’s economic landscape.
As investigations continue, attention is increasingly focused on the EFCC’s next steps, including whether further disclosures will be made regarding the contractors involved and any potential links to government officials. For now, the forfeiture of the $13 million stands as a major milestone in the case, but it also opens a broader conversation about the intersection of public funds, private enterprise, and regulatory oversight in Nigeria’s political and economic systems.
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