An Economic and Financial Crimes Commission (EFCC) investigator has told a Federal High Court in Abuja how over N4.6 billion was allegedly diverted from the coffers of the Bauchi State government.
The witness, John Ibrahim, a commission investigator serving as the first prosecution witness (PW-1), testified on Thursday before Justice Emeka Nwite at the Abuja Division of the Federal High Court. He was led in evidence by the EFCC’s counsel, M.O. Adebayo, SAN.
The witness stated that he knew the defendant, Bauchi State Commissioner for Finance, Yakubu Adamu, as well as his company, Ayab Agro Products and Freight Company Ltd, which is being prosecuted as the second defendant in the money-laundering case.
How the alleged scheme unfolded
“My lord, sometime in May 2024, the commission received intelligence reports against the fraudulent activities of the first defendant and his company,” Mr Ibrahim said.
He explained that the intelligence indicated that Mr Adamu used an account belonging to I.S. Makayya Investment Resources Ltd, domiciled in Polaris Bank, where Mr Adamu served as branch manager in Bauchi.
“That the account was used to receive funds belonging to the state government and thereafter disbursed to individuals and companies, including a company called Ayab Agro Products and Freight Company Ltd, the second defendant,” he testified.
The witness said the commission accepted the intelligence and commenced a full investigation by requesting bank statements from Polaris Bank.
N4bn and N650m inflows
Upon analysing the statements, investigators discovered inflows of N4 billion and N650 million into the account of Emmanuel Asomugha General Enterprises, also domiciled in Polaris Bank, Bauchi.
Further analysis revealed that part of the funds transferred to I.S. Makayya Investment Resources Ltd originated from a loan granted to Emmanuel Asomugha for the supply of 15,000 motorcycles to Bauchi State civil servants. The witness confirmed that the loan was approved by Mr Adamu in his capacity as branch manager.
Questionable transactions
The managing director of I.S. Makayya was invited and questioned. According to the witness, he stated that he was not a contractor in Bauchi State and had no knowledge of the over N900 million that passed through his account from Emmanuel Asomugha General Enterprises.
The investigative team also traced transfers of approximately N266 million from the I.S. Makayya account into Ayab Agro Products’ account.
Checks with the Corporate Affairs Commission (CAC) revealed that Mr Adamu is a director of Ayab Agro Products.
Commissioner’s arrest and explanation
Mr Adamu was invited to the EFCC’s office but failed to appear. He was subsequently arrested in Bauchi in 2025.
During interrogation, he claimed that Ayab Agro Ltd received the funds as repayment of a loan his agricultural company had granted to one Muntaka. However, when asked why an agric-business was granting loans to individuals, the witness said the commissioner could not provide an explanation.
Loan guarantee and diversion of funds
Regarding the loan guarantee, the witness testified that the Bauchi State government, through the office of the Accountant-General, issued an irrevocable standing payment order to Polaris Bank, directing that repayment be made from the state government’s account.
The witness alleged that the state government facilitated the loan, but that the funds were not used for the intended purpose.
“My Lord, when we analysed the account of the contractor, we only saw movement of money into the accounts of companies, including some BDC operators,” he said.
Some of the beneficiaries of the funds, according to the witness, include I.S. Makayya, Dnice Number City, Amy Trading Ltd, Umman Engineering, Assar Global Ltd, Inabi Nig Ltd, and Zailali Idriss, among others.
Several documents, including CAC letters and bank statements, were tendered in evidence and admitted as exhibits against the defendants.
Justice Nwite adjourned the matter until 4 May for the continuation of the trial.