In a damning verdict that underscores the tightening noose around financial crime in Nigeria’s banking sector, the Court of Appeal sitting in Enugu has affirmed the seven-year prison sentence of Onyekachi Nwosu, a former staff member of Guaranty Trust Bank (GTB), for his central role in a N50 million loan fraud scheme.
Nwosu, who once held the position of account officer at GTB, was convicted on January 14, 2021, by Justice R.O. Dugbo Oghoghorie of the Federal High Court, Enugu, after a thorough prosecution by the Economic and Financial Crimes Commission (EFCC). He faced a nine-count charge that included forgery and obtaining money under false pretenses.
THE FRAUD UNVEILED
According to investigators, Nwosu manipulated his banking position to fraudulently process a N50 million loan for Floxy Aluminum Odiofele Products Limited, submitting a series of forged documents, including an application to mortgage, a consent form, and a tripartite legal mortgage. He falsely claimed that Mrs. Adebimpe Foluke had pledged her property as collateral—a claim found to be entirely fabricated.
The shocking twist? Nwosu personally pocketed N40 million from the fraudulent loan.
During the initial trial, the EFCC’s counsel, ACE II Mainforce Adaka Ekwu, presented four compelling witnesses and tendered 16 exhibits that nailed the accused. The trial court handed down a seven-year jail term, citing strong evidence of fraudulent intent and personal gain.
A DESPERATE APPEAL — DENIED
Not content with his conviction, Nwosu took the case to the Court of Appeal, hoping to overturn the ruling. But the three-member panel, led by Justice Zainab Baba Abubakar, delivered a firm and unanimous verdict: the trial court was right—at least on one crucial count.
While the appellate court set aside convictions on Counts 1 through 8, it upheld Count 9, which proved the gravest offense: knowingly facilitating the fraudulent loan and accepting personal gratification.
“The appellant admitted he collected N40 million from the loan,” the panel noted. “This confession, supported by the testimony of the First Prosecution Witness (PW1), completed the final element of the offence.”
The offence falls under Section 15(1)(a)(iii) and is punishable under Section 16(1)(a) of the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act, Cap. F2, Laws of the Federation of Nigeria.
A SIGNAL TO THE BANKING WORLD
The judgment sends a strong message to the banking industry: no insider is above the law. The EFCC has reiterated its commitment to rooting out corruption within financial institutions, and this case adds to its growing list of high-profile convictions.
As Guaranty Trust Bank navigates increasing public scrutiny—especially amid unrelated controversies surrounding the recent arrest of activist VeryDarkMan—this ruling casts another shadow over its internal controls and risk management practices.
Justice has been served, but the stain of betrayal within one of Nigeria’s top banks lingers.
