Finance
EFCC has no power to investigate or recover civil contract debts, court rules


BY: Justice Godfry
A Federal High Court, Ibadan, has ruled the Economic and Financial Crimes Commission (EFCC) has no power to arrest anyone or investigate cases of debt recovery arising from breach of contract.
Justice J. O. Abdulmalik in an April 1, 2019 damning judgment, a copy of which was obtained by The Nation, declared that the EFCC Act 2004 does not empower the commission to arrest, detain anyone or investigate cases of breach of contract in business transactions.
It held that the commission only has power to arrest, detain or investigate financial crimes, not civil transactions.
He gave the judgment in a case dragged before him by an Ibadan-based business man, Elder Francis Morakinyo Afolabi, through his lawyer, Mr. Joshua Olaniyan, against the commission and five others. Afolabi dragged the EFCC to court for his arrest, torture and freezing of his bank account based on a petition submitted on him by Mr Kehinde Olaniyan who trades under the name Kehinde R. Olaniyan Nigeria Enterprises over failure to fulfill his part of a business transaction worth N14 million with the latter in 2015.
The petition was submitted to the Ibadan zonal office of the commission, upon which it invited Afolabi.
Other respondents are three investigating officers of the commission and First Bank of Nigeria PLC in whose Afolabi’s Account was frozen.
The complainant was admitted to bail while his bank account was frozen pending the completion of its ‘investigations’.
But Afolabi dragged the commission and other respondents to court seeking a declaration of his arrest and freezing of account illegal as well as publication of a public apology in two national dailies that are popular in Ibadan.
He also sought N100 million damages against the six respondents in the case.
Citing the case of Lima versus Mohammed (1999) LPELR-1973 (Supreme Court), the judge declared that “an aggrieved party in a breach of contract is to seek for civil redress by way of insisting on actual performance of the contract or seek damages for the breach.” Justice Abdulmalik pointed out that it has become fashionable for some Nigerians to use law enforcement agents to retrieve debts arising from civil transactions instead of approaching the court to do so, possibly in an attempt to dodge lawyers’ professional fees.
The judge also held that Afolabi’s fundamental human rights were breached through his arrest and freezing of his bank account. He, therefore, awarded N500, 000 damages to the applicant but absolved the bank, stressing it was under obligation to honour the request from the EFCC for the account freezing being a commission empowered to do such.
The judge set aside the directive freezing Afolabi’s bank account.
For justice to be done, the court also held that Mr Olaniyan, who dragged Afolabi to the EFCC, should publish a public apology in a national daily whose circulation is popular in Ibadan.
Among the seven issues formulated, six were resolved in favour of Afolabi.
The court held that the commission has no power to investigate or resolve disputes arising from civil contracts, is not a debt recovery agency, declared freezing of Afolabi’s bank account illegal, declared his arrest as a breach of his fundamental human rights and a form of torture.
He declared: “On issues one, two, three and four of the applicants, there is no gainsaid that the 1st respondent (EFCC) does not have the power to resolve or and investigate disputes arising from contracts or civil transaction.
“Also, as reiterated in a plethora of judicial authorities, the 1st respondent is not a debt recovery agent.”
The judge referred to, among others, Section 6B of the EFCC Act 2004 Laws of Federation of Nigeria which states that the commission shall be responsible for the investigation of all financial crimes including advance fee fraud, money laundering, counterfeiting, illegal charge transfers, future market fraud, fraudulent encashment or negotiable instruments, computer credit card fraud, contract scam etc.
He insisted the transaction between Afolabi and Olaniyan was civil, pointing out failure to honour terms of contract does not amount to a crime.
He said it is strictly a civil transaction that is outside the powers of the commission irrespective of the garb the commission put on the matter.
“Carefully from the above facts, I do find that irrespective of the descriptive inventory lexicon employed by the 5th respondent Mr Kehinde Olaniyan) to title his petition or report to the 1st respondent, it does not dissipate the facts on the ground from being that of a civil transaction of contract which has gone wrong.
“To cushion my point, the 5th respondent’s report to the 1st respondent can be tantamount to a cry of ‘help me collect my money from the applicant’.
“Otherwise, the question will be ‘what does the 5th respondent really want the 1st to 4th respondents to investigate?’ There is no mystery about the fact, the 5th respondent supplied applicants goods worth N14,611,820:00 which has not been paid for…
“The ‘investigation power’ vested on the 1st respondent is in relation o the commission of a crime, and not a civil transaction, as simple as recovery of debt. The requisite sections of the E inimical and Financial Crimes Commission (Est) Act Laws of Federation of Nigeria 2004 as aforementioned all referred to instance and occasion of suspicion crime.”
Source: The Nation
Finance
Tinubu Launches Personal Income Tax Calculator to Improve Compliance, Fairness
By ORJI ISRAEL


President Bola Tinubu has launched a Personal Income Tax Calculator to help Nigerians work out their tax obligations under the new tax law.
The tool is expected to make compliance easier and improve transparency in the system.
In a post on his X page, the president said the calculator shows how the recent reforms protect low-income earners while ensuring fairness.
“A fair tax system must never punish poverty or weigh down the most vulnerable. With the new tax laws I recently signed, taking effect from January 2026, we have lifted this burden and created a path of equity, fairness, and true redistribution in our economy,” Tinubu said.
Some months ago, he signed four major tax bills into law to bring Nigeria’s scattered tax system under one framework. These include the Nigeria Tax Administration Law, which sets out a uniform process for tax administration across federal, state, and local governments; the Nigeria Revenue Service (Establishment) Bill, which replaces the current Federal Inland Revenue Service Act with a stronger, more independent revenue agency; and the Nigeria Revenue Service (NRS) and Joint Revenue Board (Establishment) Bill, which creates a formal structure for cooperation between revenue bodies at all levels.
The introduction of the tax calculator, together with these reforms, is expected to reduce confusion for both individuals and businesses, while also making it easier for them to meet their obligations and contribute to national growth.
Tinubu added that the reforms are part of building renewed hope for the economy and urged Nigerians to trust in the country’s future for themselves and their families.


The Federal Inland Revenue Service (FIRS) says that no fewer than 1,000 companies, representing 20% of total eligible firms, have begun integrating its newly launched electronic invoicing (e-invoicing) system less than two weeks after it went live.
The FIRS e-invoicing platform, which went live on August 1, 2025, after a successful pilot phase that began in November 2024, was designed to modernise Nigeria’s tax administration, curb evasion, and enhance transparency in revenue generation. It also provides the FIRS with real-time visibility into commercial transactions, ensuring authenticity and completeness of invoices.
According to a statement by Dare Adekanmbi, special adviser on Media to FIRS Chairman Zacch Adedeji, at least 1,000 companies, representing 20% of more than 5,000 eligible firms, have already adopted the system and begun integrating with the FIRS platform.
Adekanmbi noted that the initiative, also known as the Merchant-Buyer Model, will be rolled out in phases. “Large taxpayers, which are companies with annual turnover of N5 billion and more, are expected to be the first to be onboarded on the platform,” he said.
FIRS revealed that MTN Nigeria was the first taxpayer to transmit live electronic invoices to the platform, while Huawei Nigeria and IHS Nigeria have concluded test transmissions and are expected to go live soon.
The agency added that the initial compliance deadline of August 1, 2025, has been extended by three months to accommodate companies currently facing onboarding challenges. The new deadline is now November 1, 2025.
Finance
NGX Boss, Umaru Kwairanga, to Chair Business Journal Fintech Roundtable 2025
By Our Correspondent


Dr. Umaru Kwairanga, Group Chairman, Nigerian Exchange Group (NGX) will Chair the 2nd Business Journal Fintech & Financial Inclusion Roundtable 2025 scheduled for Friday, August 29, 2025 at Oriental Hotel, Lekki, Lagos. Time is 10-am prompt.
The theme of the Roundtable is: Fintech & Financial Inclusion: The Opportunities & Challenges for Nigeria.
In a statement, Prince Cookey, Publisher/Editor-in-Chief of Business Journal Media Group said the choice of Umaru Kwairanga to chair the event is a reflection of his immense and chequered journey in the Nigerian economic system over the years.
“Dr. Umaru Kwairanga is a noted player in the Nigerian economy and financial services sector. Over the years, he has carved a positive niche in driving the narrative in national policy formulation, implementation and review. He remains a worthy point of reference and role model to current and future players in the Nigerian economy.”
Alhaji (Dr.) Umaru Kwairanga, Sarkin Fulani Gombe and Group Chairman, Nigerian Exchange Group (NGX), is a notable player in the Nigerian corporate world, a thorough-bred professional and a prominent community leader in Gombe State and the North East region.
He has served at the highest levels of the banking, pension, investment, manufacturing and commercial sectors of Nigeria’s economy. He is the current Chairman of the Nigerian Exchange Group Plc, Nigeria’ oldest stock exchange and also Chairman of Tangerine General Insurance Limited.
The NGX Chairman is also a Director on the Boards of First Bank Senegal Limited, Tangerine Apt Pensions Limited and the Group Managing Director of Finmal Finance Services Limited.
He is a past Chairman of Ashaka Cement plc and previously served on the Boards of Jaiz Bank Plc, Central Securities Clearing System Plc, Lafarge Africa Plc and First Bank Mortgages Limited to mention a few.
Professionally, Alhaji Kwairanga is a Fellow of the Chartered Institute of Stockbrokers, Chartered Institute of Directors of Nigeria, the Certified Pension Institute of Nigeria and the Abuja Commodities and Securities Exchange.
He is also a Council Member of the Chartered Institute of Stockbrokers; the Chartered Institute of Directors and he is the current President of the Certified Pensions Institute of Nigeria.
Kwairanga is a holder of the prominent traditional title of Sarkin Fulani Gombe and has led several initiatives for peace and development in Gombe State and the North East region in general.
He has also been involved in policy and strategy formulation in the public sector as a Member of the Vision 2020 Committee, the Presidential Advisory Committee on the Nigerian Industrial Revolution Plan and several committees of the Securities and Exchange Commission (SEC).
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