Court Orders Forfeiture of ₦1.37 Billion Illegally Moved During El-Rufai’s Tenure

The Federal High Court in Kaduna has ordered the interim forfeiture of ₦1.37 billion to the Federal Government, following allegations that the funds were illegally diverted during the tenure of former Kaduna State Governor Nasir El-Rufai. The court ruling, issued on February 28, 2025, came after an ex parte application was filed by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) on February 14, 2025.

According to a Guardian report on March 5, 2025, the funds were allegedly transferred into the private account of Indo Kaduna Marts JV Nigeria Limited, a company that was involved in a joint venture with the Kaduna State Government for a light rail project. The project, initiated in October 2016, aimed to improve transportation within Kaduna. However, investigations revealed that the company was not officially registered with the Corporate Affairs Commission (CAC) until May 10, 2017—several months after it had already received payments from the state government.

Between December 2016 and January 2017, the Kaduna State Government disbursed ₦11.1 billion to Indo Kaduna Marts JV Nigeria Limited. ICPC’s findings indicate that instead of being used for the project, the funds were placed in an interest-yielding account. The accrued interest, amounting to ₦326.8 million, was then allegedly diverted to various accounts associated with Skipper Nigeria Limited, a company linked to Indo Kaduna Marts JV Nigeria Limited.

Further investigations uncovered that ₦1.046 billion was transferred in two separate payments—₦890.3 million and ₦156 million—into the accounts of GTA Engineering Nigeria Limited, a subsidiary of Skipper Nigeria Limited. These payments were purportedly made for a feasibility study, which the ICPC claims was never conducted.

Following these discoveries, the ICPC petitioned the court for an interim forfeiture of the recovered ₦1.373 billion. Justice G.M. Kabara of the Federal High Court in Kaduna granted the request and instructed that a public notice be published in two national newspapers. This notice will invite any interested parties to come forward and present reasons why the funds should not be permanently forfeited to the Federal Government.

Former officials from El-Rufai’s administration have strongly denied any wrongdoing. They insist that the joint venture followed due process and that the funds were managed transparently. According to their statement, the light rail project was estimated to cost between $600 million and $700 million and was structured under a Build, Own, Operate, and Transfer (BOOT) agreement.

Under this financing model, Skipper Nigeria Limited was responsible for securing 85% of the project’s funding through a loan from the Indian Export-Import Bank, while the Kaduna State Government was to provide the remaining 15% as equity. The former officials explained that Indo Kaduna MRTS-JV Nigeria Limited had been registered in India, which facilitated financial transactions with the Indian bank.

However, they acknowledged that the project faced delays due to the failure to secure a sovereign guarantee from the Federal Government, which was required for the loan. As a result, ₦10 billion was refunded to the Kaduna State Government in July 2019, while the remaining ₦890 million was allegedly used for the feasibility study.

With the court’s decision and ongoing ICPC investigations, the controversy surrounding the Kaduna light rail project continues to raise concerns about transparency and financial management during El-Rufai’s administration. The case is expected to proceed as the court awaits any claims against the forfeiture before issuing a final ruling.