Court Sentences Former NHIS Boss, Femi Thomas ,other for $2,198,900 Fraud

The Federal High Court sitting in Ikoyi, Lagos, and presided over by Justice Ayokunle Faji, on Thursday convicted Dr. Olufemi Martins Thomas, a former Executive Secretary of the National Health Insurance Scheme (NHIS), alongside Kabiru Sidi, a Bureau De Change operator, for fraud involving the sum of $2,198,900.

Thomas and Sidi were arraigned on an amended seven-count charge bordering on money laundering to the tune of $2,198,900, brought against them by the Lagos Zonal Directorate I of the Economic and Financial Crimes Commission (EFCC).

Six of the counts pertained to money laundering and the unlawful cash transfer of proceeds from criminal activities, in contravention of the Money Laundering (Prohibition) Act, 2011, as amended.

Sidi, however, was prosecuted solely on count six, which involved making a false statement to an EFCC official.

Delivering the judgment on Thursday, Justice Faji found Thomas guilty of “transacting beyond the lawful threshold without going through a financial institution” and sentenced him to a fine of ₦10 million.

Sidi was convicted of making a false statement to an EFCC investigating officer and sentenced to a fine of ₦100,000.

However, the court discharged Thomas on counts one, two, three, four, and seven of the charge.

One of the charges against Thomas read as follows:“That you, Dr. Martins Oluwafemi Thomas (a.k.a. Dr. Ike), former Executive Secretary of the National Health Insurance Scheme, on or about the 3rd day of July 2015 at Lagos, within the jurisdiction of this Honourable Court, procured Mrs. Femi Thomas to disguise the unlawful origin of the sum of $2,198,900 (Two Million, One Hundred and Ninety-Eight Thousand, Nine Hundred United States Dollars), and thereby committed an offence contrary to Section 18, and punishable under Section 15(2)(a) and (3) of the Money Laundering (Prohibition) Act, 2011 (as amended by Act No. 1 of 2012).”

The charge against Sidi stated:“That you, Kabiru Sidi, on or about the 15th day of July 2015, at the office of the Economic and Financial Crimes Commission, 15A Awolowo Road, Ikoyi, Lagos, within the jurisdiction of this Honourable Court, made a false statement to Afeez Mustapha, an investigating officer with the EFCC, to the effect that you gave over two million United States dollars to one Bamidele Ibiteye, and thereby committed an offence contrary to Section 39(2)(b), and punishable under Section 39(2)(c), of the Economic and Financial Crimes Commission (Establishment) Act, 2004.”

Both defendants pleaded not guilty to the charges, leading to a full trial.

At the last adjourned hearing on Thursday, May 29, 2025, the prosecution counsel, Ekele Iheanacho, SAN, in his final written addresses dated May 5 and 9, 2025, submitted that:“In line with the charges, the prosecution called six witnesses. The defendant made a no-case submission, which was overruled by both the trial and appellate courts on the grounds that the prosecution had established a prima facie case.”

He argued that the defendant was required by law to explain the legitimate source of the funds. According to Iheanacho:“The defendant claimed he made the funds through farming activities, and his financial statements contained evidence of such farming.”

Concluding his arguments, Iheanacho emphasized:“This is a case of money laundering, where the concealment of financial transactions is central. The law mandates that such transactions be processed through financial institutions to enable traceability. Any application suggesting otherwise undermines the purpose of Section 1 of the Money Laundering Act.”

He urged the court to dismiss the submissions of both defendants and convict them as charged.