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LawyerNigerian Central Bank Governor Godwin Emefiele Arrested on Allegations of Financial Impropriety and Terrorism Financing
June 11, 2023 in Business/Commercial, Corporate Law, Criminal Law
On June 10, 2023, Nigerian Central Bank Governor Godwin Emefiele was arrested by the Department of State Services (DSS) on allegations of financial impropriety and terrorism financing.
Allegations of Financial Impropriety
Emefiele is accused of using his position as governor of the CBN to enrich himself and his associates. The DSS alleges that Emefiele awarded contracts to companies owned by his friends and family, and that he used his position to secure loans for himself and his associates.
Allegations of Terrorism Financing
Emefiele is accused of using his position as governor of the CBN to finance terrorist organizations. The DSS alleges that Emefiele transferred money to terrorist organizations, and that he provided financial support to terrorists.
Emefiele has denied all of the allegations against him. He has said that he is being targeted for political reasons.
Evidence Against Emefiele
The DSS has not released any details about the evidence that it has against Emefiele. However, it is possible that the evidence includes bank records, financial transactions, and witness testimony.
Possible Laws That Emefiele May Have Violated
The DSS may use any of the following laws against Emefiele:
- Economic and Financial Crimes Commission Act, 2004: This law prohibits a wide range of financial crimes, including money laundering, terrorism financing, and round tripping. Some relevant sections of the law are Section 6 which gives the EFCC the power to investigate all financial crimes and Section 15(3) which states that ” Any person who makes funds, financial assets or economic resources or financial or other related services available for use of any other person to commit or attempt to commit, facilitate or participate in the commission of a terrorist act is liable on conviction to imprisonment for life.”
- Money Laundering (Prevention and Prohibition) Act, 2022: This law prohibits money laundering and provides for the establishment of the Special Control Unit Against Money Laundering (SCUML). There are some relevant sections in the law one of which is section 18 which prohibits any person from engaging in any activity involving the proceeds of crime. A person who does this is liable on conviction to imprisonment for not less than 4 years but not more than 14 years or a fine not less than 5 times the value of the proceeds of the crime or both.
- Terrorism (Prevention and Prohibition) Act, 2022: This law prohibits terrorism and provides for the establishment of the National Counter Terrorism Centre (NCTC). The relevant sections of the law are section 2 (1) which states that “All acts of terrorism and financing of terrorism are hereby prohibited.” And section 21 which prohibits and penalizes financing terrorism, life imprisonment for a person
It is important to note that Emefiele has not been charged with any crimes and is presumed innocent until proven guilty.
Implications of Emefiele’s Case
Emefiele’s case is sure to be closely watched by Nigerians and the international community. The outcome of his case will have implications for the fight against terrorism, corruption, and financial impropriety in Nigeria, and it will also send a message about the government’s commitment to these ills.
Conclusion
It is difficult to say what will happen next in Emefiele’s case. It is possible that he will be charged with crimes, but it is also possible that he will be cleared of all charges. Ultimately, the outcome of Emefiele’s case will depend on the evidence that the DSS has against him.
As a reader, you can stay informed about Emefiele’s case by following the news and reading articles on the topic. If you have any questions about the legal implications of Emefiele’s case, please feel free to let me know in the comments or contact me via DM. I am a lawyer and would be happy to help you understand the legal issues involved.
ELECTION PETITION PROCEDURE IN NIGERIA
March 1, 2023 in Civil Law, Government Advisory, Uncategorized
An Election petition refers to the procedure for challenging the result of an election. Election petitions are instituted to challenge the validity of an election or for disputing the due return of a candidate and are the only legal way to do so under Nigerian law. It is usually presented by a candidate in an election or a political party that took part in the elections.
An election petition is referred to as sui generis in law because it has its peculiarities with legal procedures and processes that are different from normal civil proceedings.
APPLICABLE LAWS
Electoral Act 2022 and the Nigerian constitution 1999 (as amended) provide for the procedure of election petition. These laws provide for the courts that have jurisdiction to entertain electoral disputes. Petitions arising from National Assembly elections are to be heard by designated tribunals. The Governorship and Legislative Houses Election Tribunals handle petitions arising from elections conducted in the states of the federation for governorship and houses of assembly. For presidential elections, the appropriate court to hear election petitions is the Court of Appeal.
TIMELINE FOR THE COMMENCEMENT OF ELECTION PETITIONS
In Nigeria, Election petitions are time-bound actions and must be brought within the time prescribed. The timeframe for filing an election petition depends on the type of election.
For the presidential election, Section 134(2) of the Electoral Act 2010 (as amended) stipulates that an election petition challenging the outcome of the presidential election must be filed within 21 days after the date of the declaration of the results by the Independent National Electoral Commission (INEC).
For governorship and legislative elections (i.e., elections into the Senate and House of Representatives), Section 138(2) of the Electoral Act provides that an election petition must be filed within 21 days after the date of the declaration of the results by INEC.
It is important to note that the 21-day period for filing an election petition is a strict and mandatory deadline, and failure to comply with this deadline may result in the dismissal of the petition by the court.
CONCLUSIONS
Elections make a fundamental contribution to democratic governance. The Legislature understands this importance hence the detailed provisions of the law on electoral disputes. The non-conformity with the provided timelines is a ground upon which the court can disregard the suit.
BUSINESS FACILITATION ACT: NIGERIA’S SUPPORT FOR MSMES/START-UPS GROWTH
February 20, 2023 in Business/Commercial, Civil Law, Consumer Protection Law, Corporate Law
Introduction
President Muhammadu Buhari as part of efforts to promote ease of doing business in Nigeria has assented to the Business Facilitation ( Miscellaneous Provision ) bill. In the long title of the bill, the Act aims for ease of doing business and ensuring transparency, efficiency and productivity in Nigeria. The Act also amended some business-related laws for the benefit of business owners in Nigeria.
This act marks a milestone in the delivery of an enabling environment for Micro, Small and Medium-Sized Enterprises (MSMEs) and Start-ups in Nigeria.
With the passage of the Act, it is envisaged that with proper implementation, Nigeria should experience an increase in the number of MSMEs and boost investor presence and participation in the Nigerian business ecosystem. The implementation of the Act will also relieve businesses and start-ups of some of the bottlenecks experienced before now particularly in dealing with the relevant Ministries, Departments and Agencies (MDAs). This article highlights some provisions of the Act.
An Analysis of the Noteworthy Provisions of Business Facilitation ( Miscellaneous Provision) Act
- Transparency in Business Application to Ministries, Departments and Agencies (MDAs) (Section 3 of the Act)
- All MDAs must now publish the requirements of applications, applicable fees for all applications and timeline on their official websites and where there is a conflict between the published list of application requirements and the unpublished list, the published list will prevail.
- Approval of any Application must be communicated within time to applicants. Where Ministry, Department or Agency fails to communicate the Approval to an applicant, the application will be deemed approved. If an application is rejected, the Ministry must state the reason for the rejection.
- If the Ministries, Departments and Agencies fail to act on an application within the time stipulated without a lawful reason. Failure shall constitute misconduct and such Ministry, Department or Agency will be subjected to a disciplinary proceeding at the instance of the applicant.
Amendment to some sections in the Companies and Allied Matters Act
The following are some key amendments to the Companies and Allied Matters Act 2020 by the Business Facilitation Act (The Act).
- Automated Application: The Act mandates the Corporate Affairs Commission to automate all applications. Before the passage of the Act, some applications are manually made to the Corporate Affairs Commission, this is no longer acceptable.
- Share Capital: The Act provides that the Board of Directors can via a resolution increase the share capital of a company. Before the enactment of the Act, only the members of the Company at the General Meeting can do so. Now either the Board or Company members at the General Meeting can increase a company’s share capital.
- Pre-emptive Right: This is the right of existing shareholders in a corporation to purchase newly issued stock before it is offered to others. The Act provides that pre-emptive rights shall only be applicable in private companies. Before the Act, section 142 of CAMA provides for shareholders’ pre-emptive rights for both private and public companies.
- Return of allotment: Return of allotment is a statement submitted to the CAC Registrar which contains the names and addresses of shareholders and the number of shares allotted to each shareholder. The timeframe for making a return of allotment used to be a month as provided by section 154 of CAMA. The Act now provides that this application should be made within 15 days of such allotment(s).
- Virtual Meetings: The Act allows private and public companies to hold virtual general meetings. Before the enactment of the Act, by the provision of section 240 of CAMA only private companies were allowed to hold virtual general meetings.
- Notice of Meetings: The Act provides that notice of meetings can now be given electronically to any member of a company. Before the Act by section 244 of CAMA, a notice of meeting must be given to a member either personally or by post or delivered to the member’s registered address.
- Voting at Meetings: Electronic Voting is now a recognized means of voting at general meetings. Before the Act, section 248 of CAMA provides that at general meetings, voting must be by either show of hands or a poll where demanded.
- Independent Directors: The Act provides that the number of Independent Directors in a public company must be one-third of the total number of its directors. Before now, section 275 of CAMA provides that the independent Directors of a public company must be at least 3.
Conclusion
The Business Facilitation Act is a significant milestone for MSMEs and start-ups in Nigeria. The Act restricts the regulatory bottlenecks faced by companies and businesses in Nigeria because the Act provides for responsible and responsive MDAs on application procedures and swift approvals or no approval of applications. If implemented, Nigerian and non-Nigerian-owned businesses will say goodbye to the days of endless waiting for the acceptance of business applications. The implementation of the Act also promises to boost Nigeria’s revenue.
The Trend of Labour Outsourcing in Nigeria. What is the Position of the Law?
February 15, 2023 in Civil Law, Corporate Law, Labour Law, Uncategorized
Introduction
Nigeria’s Labour Law has different dimensions and labor outsourcing is the new one. Labor outsourcing is a new labor relationship in Nigeria. It means outsourcing the provision of the labor force by a labor outsourcing service provider (“Labour Outsourcing Provider”) to an independent enterprise. It is now a common practice in Nigeria, especially in the oil and gas and banking sector for the outsourcing company to recruit workers on behalf of a company.
In labor law, there are two types of contract of employment which are contract of employment and contract for employment.
A contract of employment is a type of master-servant relationship between an employer and an employee. In this type of relationship, the employer has control over the employee and is liable for the negligent act of the employee in the course of the business. A contract for employment, on the other hand, is a contract between an employer and an independent contractor, in this instance, there is no liability on the employer. In labor outsourcing, there is a relationship between the employer, the employee, and the outsourcing firm. It is important to determine the rights and liabilities involved of the parties. The trend has since emerged in Nigeria and there is now a guideline that determines the liabilities of the parties.
Position of the Law Before the Issuance of the Guidelines.
The Labor Act does not capture the labor outsourcing relationship between an employer, an employee, and the outsourcing company. In 2019 the National Industrial Court of Nigeria (“NICN”) the court responsible for entertaining labor disputes in Nigeria held in the case of COLLINS U. OKEKE & ANOR. V. DELONG MEDICAL SERVICES LIMITED & ANOR that a labor contractor is the employer of the contract staff. While in 2022 in NORBERT CHUKWUEMEKA NWORAH V. ZENITH SECURITIES LTD. & 3 ORS.[17] the court held that both the labor contractor and the end user would be jointly or severally liable to the contract staff over breaches of employment terms.
Labour Outsourcing Guidelines
The Federal Ministry of Labour, as the regulator, has issued sector-specific guidelines spelling out the status of the outsourced employee and contract staff.
Feature of the Guidelines
Some of the notable provisions of the guidelines include
1. The labor outsourcing practice is now recognized by the Nigeria Government.
2. The employee is now referred to as an employee of the outsourcing company and not the end user; This means that in the event of a breach of employment terms, or disputes, the employee will sue the outsourcing firm and not the company he works for.
3. The establishment of minimum wage pay for employees in the financial sector.
4. The outsourced employee has the right to Freedom of Association by section 12 of the Trade Union Act and Section 40 of the 1999 constitution.
5. The clause in the agreement between the employer and the outsourcing company/firm must provide for the means of settlement of disputes.
6. The Principal Company (employee) must ensure that the outsourced company is licensed under section 8.4 of the guidelines.
7. Labour Recruiters must comply with all relevant labor laws as well as the International Labour Organizations standards. This is contained in sections 8.3 and 8.5 of the finance sector guidelines
8. The Guidelines also make provisions for job security and capacity development for contract staff working in the oil and gas sector. This is by section 6 of the oil and gas guidelines.
Conclusion
The guideline is a welcomed development in the labor sector. It defines the roles and responsibilities of the labor outsourcing tripartite relationship in Nigeria.
DEADLINE ON USAGE OF OLD NAIRA NOTES: EXAMINING THE JURISDICTION OF THE SUPREME COURT
February 13, 2023 in Business/Commercial, Civil Law, Corporate Law, Government Advisory
Introduction
On the 8th of February 2023, the Supreme Court restrained the Central Bank of Nigeria from putting a deadline on the collection of old notes by commercial banks in Nigeria. The ruling, led by Justice John Okoro, was issued by a seven member panel based on an exparte application brought by three (3) states namely, Zamfara Kogi, and Kaduna.
The jurisdiction of the Supreme Court to make this ruling and entertain the matter was challenged. The Central Bank of Nigeria maintained that the Supreme Court does not have jurisdiction.
The Supreme Court of Nigeria is the apex court in the hierarchy of courts in Nigeria. In this article, the jurisdiction of the Supreme Court will be considered.
Jurisdiction of the Supreme Court
The jurisdiction of the Supreme court is provided in section 232 of the 1999 constitution sets out as follows:
“The Supreme Court shall, to the exclusion of any other court, have original jurisdiction in any dispute between the federation and a state or between states if and in so far as that dispute involves any question ( whether of law or fact) on which the existence or extent of a legal right depends.
Following the provisions of section 232, the Supreme Court can only invoke its original jurisdiction in two instances viz (i) any dispute between the federation and a state or (ii) any disputes between states. The supreme court also possesses original jurisdiction on disputes arising from law or facts between the National Assembly and the president; the National Assembly and any state House of Assembly; and the National Assembly and a state of the federation.
The Federation is referred to as the federal government. However, in the Instant case, the Central Bank is an agency of the Federal Government, and not the federal government.
From the foregoing, although contrary view exists, I am of the opinion that the Supreme court lacks the jurisdiction to entertain the matter and that the Federal Government has the jurisdiction to do so. To back up this point, it is pertinent to consider section 251 of the 1999 Constitution (as amended) which set out the matters over which the Federal High Court has jurisdiction.
By section 251 of the Constitution, the proper court to exercise jurisdiction over the matter of ‘currency’ between the agent of the federal government and any person or entity is the Federal High Court. This means as long as the matter is on a currency policy by the federal government, the proper venue for adjudication is the Federal High Court. Section 251(1)(d) of the Constitution of the Federal Republic of Nigeria provides as follows:
notwithstanding anything contained in the Constitution and in addition to such other jurisdiction as may be conferred upon it by an Act of the National Assembly, the Federal High Court shall have and exercise jurisdiction to the exclusion of any other court in civil cases and matters connected with or pertaining to banking, banks, other financial institutions, including any action between one bank and another, any action against Central Bank of Nigeria arising from banking, foreign exchange, coinage, legal tender, bills of exchange, letters of credit, promissory notes, and other fiscal measures. (Provided that this paragraph shall not apply to any dispute between an individual customer and his bank in respect of transaction between the individual customer and the bank).
The wording of the Constitution is very specific as to the court of first instance when the Central Bank of Nigeria is involved.
Conclusion
Jurisdiction is a threshold matter in law and the foundation of any case. The propriety of the Supreme Court order or otherwise lies in whether the supreme court has the jurisdiction to give the order.
Machina v. Lawan: Understanding the legal reason behind the judgment
February 8, 2023 in Civil Law, Government Advisory, Uncategorized
Introduction
On May 28, 2022, the All-Progressive Congress conducted a primary election to nominate a senatorial candidate. Bashir Machina was declared the winner unopposed in the primary election.
On the other hand, Ahmed Lawan, the incumbent Senate President, was at the time of the primary election a presidential Aspirant. Ahmed Lawan lost the primary election.
For ease of reference, section 115(d) of the Electoral Act 2022 provides that:
(1) A person who signs a nomination paper or result form as a candidate in more than one constituency at the same election commits an offence and is liable on conviction to a maximum term of imprisonment of two years.
This provision of the law prevented Ahmed Lawan from obtaining the two forms at a time.
Ahmed Lawan haven lost the bid to emerge as a presidential candidate of the All Progressive Congress, the refusal of Bashir Machina to step down for him led to the conduct of another APC primary election on June 6 2022, for Yobe North Senatorial Candidate where Ahmed Lawan was declared as a winner.
Dissatisfied, Bashir Machina filed a case against Ahmed Lawan in the Federal High Court. Machina was affirmed as the Yobe North Senatorial Candidate in the Federal High Court and the Court of Appeal respectively. On February 6, 2023, the Supreme Court upturned the two decisions of the lower courts and declared Ahmed Lawan as the winner.
The Crux of the Supreme Court Judgment
In law, there are different ways of commencing an action in a court via
1. Writ of Summons is a formal document addressed to the defendant requiring him to appear before the court if he/she wishes to defend himself against the plaintiff’s claim. It is the most common way of instituting court actions and is used for contentious matters.
2. Originating Summons: This is used to commence an action with undisputed facts. Here the court is tasked to interpret a document or law.
3. Originating Motion: where statute/rules mandate its use. usually for prerogative orders (habeas corpus, mandamus, prohibition, and certiorari)
4. Petition: This is used to initiate cases like custody of a child, divorce etc
Every court in the Nigerian legal system has rules that bind the Court, Litigants and Legal Practitioners. The provisions of the Court Rules must be strictly followed when instituting/commencing an action in the court.
In the supreme court judgement of Machina v. Lawan, Justice Centus Chima Nweze, who delivered the majority judgment of the Supreme Court, held that Machina ought to have commenced his case at the Federal High Court with a writ of summons given allegations made against the defendants in his suit. He said that hostile issues were alleged in Machina’s matter that could not be resolved through originating summons. It is noteworthy that Justices Adamu Jauro and Emmanuel Akomaye Agim disagreed with the majority judgment and held that both the Federal High Court and the Court of Appeal were correct in declaring Machina as APC’s Yobe North Senatorial candidate.
“Although the Federal High Court practice direction says that pre-election matters be instituted by way of Originating Summons, the Supreme Court has held in a plethora of authorities that the rules of court supersede a practice direction. And by the rules of court, an allegation of fraud should be brought by way of a Writ of Summons. This has been the consistent holding of the Supreme Court in a plethora of matters, and it won’t stop now”
Conclusion
Technical justice is a wheel in the clog of social justice. Technical justice pays more attention to the procedure that has to be followed at the expense of the substance of the case. Due to procedural technicality, Machina lost his case with the court holding that Machina’s case ought to have commenced by way of writ of summons and not originating summon due to the presence of contentious allegations. Any contentious matter ought to be initiated by Writ of Summons.
NIGERIAN 2023 GENERAL ELECTIONS: THE LEGAL ANGLE
February 4, 2023 in Civil Law, Government Advisory, Uncategorized
The Electoral Act 2022 introduced some novel changes that promise to make coming elections transparent and less problematic.
First, Section 9 of the Electoral Act 2022 mandates INEC to keep the Register of Voters at its National Headquarters and other locations in both electronic in its central database) and hardcopy.
Secondly, section 47 and 50 of the Electoral Act 2022 permits the use of electronic and tech devices like electronic voting machines, smart-card readers, etc., in the voters’ accreditation process for voters and general elections and the electronic transmission of election results, the procedure is to be determined by INEC. These provisions will mark a significant shift in transparency and meeting world standards compared to previous Nigeria’s general elections.
Also, section 51 of the Electoral Act 2022 provides that on election day, if the number of electoral votes cast at any polling unit exceeds the number of voters accredited at the polling unit on Election Day (overvoting), the Presiding officer is granted the right to cancel the election results in that polling unit. In the recently held Osun elections (August 2022) the victory of Ademola Adeleke as governor of the state was nullified. The tribunal held that Adeleke did not score the majority of lawful votes during the July 16 governorship election in the state because there was overvoting in 749 polling units across 10 LGAs of the state and that Adeleke’s victory should be nullified.
Furthermore, the tribunal, the court, and INEC possess the power to review the final decision of a returning officer on questions of a rejected ballot paper, unmarked ballot paper, return of candidate, and declaration of candidate scores. Additionally, INEC has the power to not only review but also return where the returning officer’s declaration is found to be involuntary or made contrary to the provisions of the law or the election guidelines.
Additionally, it is no longer news that Section 84 (12) of the electoral act makes political appointees ineligible as candidates or delegates in the electoral processes. This particular section has been under many criticisms. This was the reason why the former Minister of Transportation, Rotimi Amaechi, resigned as a Minister before participating in the presidential primary.
In the past, the death of an electoral candidate created many problems leading to court cases. To curb this, the electoral act provided that If a candidate dies after polls, before the announcement of the final result, the election will be suspended (for not more than 21 days). If a candidate dies before the commencement of polls, the election shall be postponed and commenced within 14 days of the candidate’s death. Where it is a legislative position election, the election shall start afresh, and the political party (whose candidate died) shall if it intends to continue to participate in the elections, conduct a new primary within 14 days of the death of its candidate and submit the name of the new candidate INEC for replacement. For presidential, gubernatorial, and FCT area council elections, the running mate of the deceased candidate is to continue with the elections as the new candidate and nominate a new running mate. Section 34, Electoral Act 2021.
These provisions, if implemented, possess the means to give a smooth and transparent election in Nigeria. Follow me on khadfora.com for more.