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Court freezes Kogi state’s account over N20bn bailout loan



The Kogi State salary bailout account has been frozen by a Federal High Court sitting in Ikoyi, Lagos.

The bailout account number is 0073572696 and domiciled in Sterling Bank Plc.

It was gathered that over N20bn loan was obtained from the bank by the state government.

Justice Tijjani Ringim on Tuesday made the freezing order of the said account pending the conclusion of the investigation or possible prosecution by the Chairman of the Economic and Financial Crimes Commission.

Court freezes Kogi state's account over N20bn bailout loan

Court freezes Kogi state’s account over N20bn bailout loan

The EFCC had approached the court for the order in an ex-parte application brought pursuant to section 44(2) of the 1999 Constitution, section 34(1) of the Economic and Financial Crimes Commission Act, and under the inherent jurisdiction of the court.

Moving the application, a counsel from the anti-graft agency, A. O. Mohammed, told the court that the N20bn loan meant to augment the salary payment and running cost of the state government was kept in an interest-yielding account with Sterling Bank.

“Instead of using the money for the purpose it was meant for, Sterling Bank Plc, acting on the instruction of the Kogi State Government, transferred the money from the loan account and placed it in a fixed deposit account.

“Sterling Bank Plc has yet to present any credible evidence to show that the facility is well secured,” Mohammed said.

Granting the application, Justice Ringim ordered the EFCC to publish the order in a national newspaper and make quarterly reports to the court on the progress of its investigation.

The judge adjourned the matter till December 1, 2021, for the report of investigation.


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