The Lagos State Government, led by Governor Babajide Sanwo-Olu, is reportedly under investigation by the Economic and Financial Crimes Commission (EFCC) over $13 million traced to socialite and businesswoman Aisha Achimugu, following revelations that part of the funds may have originated from contractors working with the state government.
On Wednesday, a Federal High Court in Abuja ordered the permanent forfeiture of $13 million belonging to Achimugu’s firm to the Federal Government, citing its suspected fraudulent origin.
The EFCC, according to officials familiar with the case, began scrutinising the Lagos State Government’s possible connection to the funds after investigators allegedly discovered that portions of the money were sourced from contractors providing services to the state. However, details of the contractors and any direct involvement of government officials have not been fully disclosed, as investigators say releasing such information could jeopardise ongoing inquiries.
A source familiar with the investigation said the full details of how the funds were generated and transferred remain part of an active probe.
In the forfeiture proceedings, the EFCC told the court that the $13 million formed part of funds used for payment obligations linked to oil block acquisitions by Achimugu’s company, Oceangate Engineering Limited, which had secured bids for Petroleum Prospecting Licences 302 and 3007.
The commission said the company was required to make a total payment of $37.2 million to complete the transaction and had already made a $20 million part-payment through several transfers between March and April 2025.
According to EFCC filings, part of the $13 million was allegedly raised through intermediaries, including unlicensed Bureau de Change operators and bank officials, with transactions routed through multiple accounts before being transferred for official payments.
Investigators further alleged that over N855 million, later converted to dollars, was sourced from contractors executing projects for the Lagos State Government, and that there was no known business relationship between the contractors and Achimugu’s company.
The EFCC also stated that the funds were not derived from legitimate business operations and were instead suspected to be proceeds of unlawful activity.
However, Oceangate Engineering Limited denied any wrongdoing, insisting in court filings that all transactions were legitimate. The company argued that it engaged licensed agents to source foreign currency required for official payments and denied any involvement with unregistered operators or illicit fund flows.
It also stated that individuals named in the EFCC allegations acted independently and that the company had no knowledge of alleged intermediaries linked to the transactions.
The Federal High Court Judge, Emeka Nwite, ruled that the explanations provided by the company were not convincing, holding that the funds were not legitimately earned.
The investigation has also revived public attention on Governor Sanwo-Olu’s relationship with Achimugu, following previous reports highlighting their close association, including a 2024 birthday event in Grenada that drew political and public scrutiny.
While the Lagos State Government has previously denied claims of any EFCC investigation involving the governor, officials have not yet responded to fresh allegations connecting state contractors to the disputed funds.
Achimugu has also faced separate controversies, including being declared wanted by the EFCC in 2025 over alleged money laundering and her links to a Ponzi scheme case, though she has not been formally charged.
