The Federal High Court sitting in Lagos has ordered the final forfeiture to the Federal Government of Nigeria of 431 mobile phones allegedly linked to a cyber-fraud operation involving convicted Chinese nationals and Nigerian recruits.
Justice Dehinde Dipeolu granted the final forfeiture order on September 29, 2026, after hearing an application argued by counsel to the Economic and Financial Crimes Commission, Hanatu Kofarnaisa.
The application was brought pursuant to Section 17 of the Advance Fee Fraud and Other Related Offences Act, 2006, and Section 44(2)(b) of the 1999 Constitution, with the EFCC asking the court to permanently forfeit the devices which it alleged were connected with unlawful activities.
The proceedings, marked FHC/LAG/MISC/990/2026, were instituted as an action in rem, meaning that the forfeiture proceedings were directed against the property itself rather than constituting a fresh criminal prosecution against the persons allegedly connected with the phones.
In an affidavit filed in support of the application, an EFCC investigating officer, Christopher Augustine, alleged that the 431 mobile phones were connected with an elaborate cyber-fraud operation involving foreign nationals and Nigerian youths in Lagos.
According to the Commission, some Chinese nationals allegedly conspired with other foreign nationals from China, Kyrgyzstan, the Philippines and Pakistan to establish and operate a facility known as “HK” in the Victoria Island area of Lagos State.
The EFCC alleged that the premises were used to facilitate internet-related fraud operations.
According to the affidavit, the operation involved no fewer than 500 laptops, 400 mobile phones and several local telecommunications cards, allegedly deployed in romance and dating scams as well as cryptocurrency and investment fraud.
The Commission alleged that several Nigerian youths were recruited through the internet and brought into the facility, where they allegedly lived alongside the foreign nationals and were trained to participate in different forms of online fraud.
The EFCC said a sting operation conducted on December 10, 2024, resulted in the arrest of more than 700 persons.
According to the affidavit, those arrested included about 500 Nigerians, 148 Chinese nationals, 40 Filipinos, two persons described in the affidavit as “Kharzartan” and one Pakistani national.
The Commission alleged that the Victoria Island premises were used to train both Nigerian and foreign nationals to engage in romance and investment scams.
It further alleged that the identities of Nigerian accomplices were used in perpetrating parts of the operation.
The EFCC said the alleged targets of the scheme included persons in the United States, Canada, Mexico and several European countries, with the suspects allegedly reaching victims through phishing techniques and online communications.
The affidavit also identified Genting International Company Limited, GICL, which the Commission said was incorporated sometime in the middle of 2024.
According to the EFCC, the company was controlled by Huang Haoyu, also known as Ken, a Chinese national, together with other alleged foreign co-conspirators.
The Commission alleged that GICL had a workforce of about 200 Chinese nationals, who allegedly operated as recruiters and supervisors of Nigerian youths employed in the scheme.
According to the EFCC, the foreign nationals and Nigerian recruits were allocated WhatsApp accounts linked to foreign telephone numbers, particularly telephone numbers originating from Germany and Italy.
The accounts were allegedly used to establish contact with prospective victims and engage them in romantic conversations or discussions presented as legitimate business and investment opportunities.
The Commission further alleged that victims were encouraged to conduct transactions through an online investment shopping platform identified as “www.yooto.com”, with activation fees allegedly beginning at $35.
According to the EFCC affidavit, an account linked to Huang allegedly received more than N3.4 billion, which the Commission described as part of the proceeds of the alleged unlawful activities.
The EFCC further alleged that Huang, acting through Genting International Company Limited, purchased mobile phones for Nigerian youths allegedly involved in the internet fraud operation.
Investigators said several mobile devices and other electronic gadgets were subsequently recovered from Huang and GICL and were suspected to have been used in carrying out the fraudulent activities.
The Commission stated that following its investigation, it filed a seven-count charge against the foreign nationals and GICL on March 7, 2025.
The charges, according to the EFCC, related to alleged cyber terrorism, possession of fraudulent documents, failure to declare activities to the Special Control Unit Against Money Laundering, illegal foreign exchange transactions and money laundering.
The Commission stated that Huang and GICL subsequently pleaded guilty to the counts brought against them and were convicted and sentenced by the court.
According to the EFCC, its continuing investigation thereafter led to the discovery of an additional 431 mobile phones allegedly linked to the convicted persons and suspected of having been acquired or used in connection with the unlawful operation.
The Commission subsequently approached the Federal High Court on July 8, 2026, seeking an interim forfeiture order over the phones.
Justice Dipeolu granted the interim order and directed the EFCC to publish the order in a national newspaper so that any person claiming an interest in the devices could appear before the court and show cause why the phones should not be permanently forfeited to the Federal Government.
The EFCC stated that it complied with the publication requirement by publishing the interim forfeiture order in The Guardian newspaper on August 11, 2026.
Following the publication and the expiration of the period prescribed by the court without the interim process being displaced, the Commission returned to court with a motion on notice seeking final forfeiture of the devices.
In its written address, the EFCC argued that Section 17 of the Advance Fee Fraud and Other Related Offences Act empowers the Federal High Court to order the forfeiture of property reasonably suspected to constitute proceeds of unlawful activity.
The Commission maintained that proceedings under the provision are non-conviction-based forfeiture proceedings, intended to prevent property reasonably suspected to be the proceeds or instruments of unlawful conduct from being dissipated.
The EFCC specifically relied on Section 17(6) of the Act, which provides that a forfeiture order under the section is not dependent upon a conviction for an offence under the Advance Fee Fraud Act or any other law.
It also cited judicial authorities, including Dame Patience Jonathan v. Federal Republic of Nigeria and La-Wari Furniture & Baths Ltd v. FRN & Anor, in support of its argument that the constitutionality and application of the forfeiture provision had been considered by appellate courts.
The Commission urged Justice Dipeolu to find that the statutory conditions for final forfeiture had been satisfied and to order the 431 mobile phones permanently forfeited to the Federal Government.
After hearing Kofarnaisa on behalf of the EFCC, Justice Dipeolu granted the application and made the interim forfeiture order final.
The 431 mobile phones were consequently forfeited to the Federal Government of Nigeria.
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