The Federal High Court in Lagos has convicted Dr. Femi Thomas, former Executive Secretary of the National Health Insurance Scheme (NHIS), for violating Nigeria’s money laundering laws by transacting above the legal cash limit for individuals.
Justice Ayokunle Faji delivered the ruling on Thursday, sentencing Thomas to a fine of ₦10 million after finding him guilty of conducting a $2,198,900 cash transaction without going through a financial institution.
The Economic and Financial Crimes Commission (EFCC) had arraigned Thomas alongside Kabiru Sidi, a bureau de change operator, on a seven-count charge bordering on money laundering. Thomas was accused of procuring his wife to disguise the source of the funds, while Sidi was charged separately for making false statements to EFCC officials.
“That you, Dr. Martins Oluwafemi Thomas (a.k.a Dr. Ike)… procured Mrs. Femi Thomas to disguise the unlawful origin of the sum of $2,198,900… and you thereby committed an offence,” part of the charge sheet read.
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Both defendants pleaded not guilty.
During the trial, EFCC counsel Ekele Iheanacho argued that the case was a clear instance of money laundering, pointing out that the funds did not pass through the formal banking system as required under the Money Laundering (Prohibition) Act.
“The law required the defendant to show how he acquired the funds legitimately,” Iheanacho told the court, adding that Thomas claimed the money came from farming, but failed to provide convincing proof.
The judge found Thomas guilty only on count five—transacting beyond the ₦5 million cash limit for individuals without using a financial institution—and discharged him on the other six counts.
According to Section 1 of the Money Laundering (Prohibition) Act, 2011 (as amended), individuals are prohibited from making or accepting cash payments above ₦5 million without routing it through a bank or other regulated financial institutions.
Thomas was sacked as NHIS boss in April 2015 by then-President Goodluck Jonathan.
