A Federal High Court in Lagos on Monday struck out an alleged N20bn money laundering charge filed against a retired company director, Taiwo Ibitola, and her firm, Lexhan Investment Ltd.
Justice Akintoye Aluko struck out the charge following an application by the police to withdraw the case.
The defendants had been charged with four counts bordering on conspiracy, fraud, conversion and retention of proceeds of crime, preferred against them by the police.
When the case first came up on November 13, 2025, for the defendants’ arraignment, proceedings were stalled due to the absence of both the prosecutor and the defendants.
The court subsequently adjourned the matter to December 16, 2025, for arraignment.
However, the court did not sit on that date, leading to a further adjournment until March 16, 2026, for the defendants to take their plea.
At Monday’s proceedings, the prosecutor, M.Y. Bello, informed the court that the prosecution had filed an application dated February 26, 2026, seeking to withdraw the charges against the defendants.
Bello told the court, “The prosecution has filed an application dated February 26, 2026, seeking to withdraw the charge against the defendants. The withdrawal is in the interest of justice.”
He urged the court to discharge the defendants while allowing the prosecution the liberty to revisit the matter if necessary.
Counsel for the defendants, Prof Taiwo Osipitan (SAN), did not oppose the application but urged the court to dismiss the case outright to prevent the prosecution from reopening it in the future.
Citing Section 108(3) of the Administration of Criminal Justice Act, Osipitan argued that the court had the discretion to acquit the defendants.
“Where a prosecutor withdraws a case before the defendant is called upon to enter a defence, the court has the discretion to acquit the defendant if satisfied that such an order is appropriate,” he said.
Osipitan further contended that the alleged offences predated the enactment of the Money Laundering (Prevention and Prohibition) Act, 2022.
“The defendants cannot be charged under a law that was not in existence at the time the alleged acts were committed,” he argued.
He also told the court that the dispute was that of family inheritance and property rights rather than criminal conduct.
“This matter involves family inheritance and property rights, not criminal wrongdoing,” Osipitan added.
In his ruling, Justice Aluko held that since the defendants had never appeared before the court and trial had not commenced, the appropriate order was to strike out the charge.
“The defendants have never appeared before the court. Upon the notice of withdrawal dated February 26, 2026, this charge is hereby struck out, and the defendants are discharged,” the judge ruled.
According to the charge marked FHC/L/781/C/2025, the police had alleged that Ibitola, her company and others now at large conspired on or before March 5, 2024, in Lagos, to fraudulently convert shares and proceeds of assets bequeathed to Mrs Idowu Ashiru and others by their late father.
The allegedly converted assets and proceeds were said to be worth N20bn.
The police further alleged that while serving as a director at Shonny Investment and Property Company Ltd and Lexhan Investment Ltd, a firm she allegedly incorporated to manage her late father’s estate, Ibitola fraudulently converted the shares and assets to her personal use with the intent to permanently deprive the rightful beneficiaries.
The prosecution said the alleged offences contravened Section 21(a) of the Money Laundering (Prevention and Prohibition) Act, 2022, punishable under Section 18(3) of the same Act, as well as Section 383(2)(b) of the Criminal Code Act, Cap C38, punishable under Section 390.
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