The Economic and Financial Crimes Commission (EFCC) has arrested an Abuja-based businessman over allegations of defrauding a Ukrainian investor of approximately $120 million.
The suspect is accused of soliciting and receiving massive sums of money between 2007 and 2015. According to investigators, the funds were intended to finance various mineral exploration and power sector projects within Nigeria, but the promised developments never materialised.
The investigation, which follows reports regarding the $120 million fraud, focuses on the discrepancy between the capital transferred by the investor and the actual execution of the projects.
Allegations regarding mineral and power projects
The EFCC stated that the suspect engaged the Ukrainian investor for nearly a decade, using the promise of lucrative opportunities in Nigeria’s extractive and energy industries to secure the funds. The money was allegedly earmarked for the commencement and operationalisation of mining activities and power infrastructure.
However, after receiving the payments, the suspect failed to deliver the agreed-upon projects. Investigators are now working to determine the movement of the funds and whether they were diverted for personal use or other unauthorised activities.
This case occurs as Nigeria seeks to increase foreign direct investment (FDI) in the solid minerals and energy sectors to diversify the national economy. Large-scale financial crimes of this magnitude pose a risk to the country’s reputation among international investors, who require high levels of transparency and legal certainty before committing capital to long-term infrastructure projects.
The EFCC has intensified its scrutiny of complex financial transactions involving foreign entities to prevent the erosion of investor confidence. The agency’s current focus is on tracing the full extent of the $120 million and establishing the legal culpability of all parties involved in the transaction chain.
The suspect is currently undergoing interrogation as the commission prepares its findings for legal proceedings.
Explore more News stories from Business Elites Africa.
