Court Voids EFCC’s Prosecution of Chappal Energies MD Over $1.5m Shareholding Dispute

An Abuja High Court has voided criminal proceedings instituted by the Economic and Financial Crimes Commission (EFCC) against the Founder and Managing Director of Chappal Energies Ltd., Mr Ufoma Immanuel, over an alleged $1.5 million fraud linked to a shareholding dispute.

Justice Josephine Obanor ruled that the EFCC violated a subsisting court order restraining it from arresting, detaining or prosecuting Immanuel and Intermediate and Investment Holdings Ltd. (IIHL) over issues arising from their shareholding arrangements with businessman Adebisi Adebutu, Biswal Ltd. and R28 Ltd.

The judge held that the September 11, 2025, order remained binding on the anti-graft agency because it had neither been set aside nor lawfully discharged.

Obanor, therefore, upheld the arguments of counsel to Immanuel and IIHL that the EFCC could not proceed with the prosecution in disregard of the existing injunction.

According to the judge, the commission ought to have challenged the order through an appeal rather than initiating criminal proceedings against the affected parties before another court of coordinate jurisdiction.

“I have examined the circumstances surrounding the application and the order made by this court on 11th September 2025.

“It is my considered view that a party who is dissatisfied with a decision of a court of competent jurisdiction has a duty to challenge that decision through the appropriate legal process,” she held.

The judge added that the EFCC, if dissatisfied with the order, should have approached the Court of Appeal for redress.

“No such appeal was filed.

“It was not open to the second defendant to disregard the order and proceed to charge the second and third claimants to court as though the order did not exist.

“A subsisting order of court remains binding until it is set aside or otherwise lawfully discharged,” Obanor ruled.

The ruling nullifies the criminal proceedings against Immanuel and IIHL before the Lagos State High Court, Ikeja Division.

A certified true copy of the ruling was made available to the News Agency of Nigeria (NAN) in Lagos on Wednesday.

On September 11, 2025, Obanor had granted an interlocutory injunction restraining the EFCC from arresting, detaining or prosecuting Immanuel and IIHL over issues arising from their shareholding arrangements with Adebutu, Biswal Ltd. and R28 Ltd.

The order also covered disputes relating to cross-shareholding agreements, subscription rights and the performance of contractual obligations among the parties.

The judge further restrained the Nigeria Police Force, its agents and privies from taking similar actions against the affected parties.

Obanor had held that the dispute was civil in nature and consequently restrained the EFCC and other respondents from harassing or prosecuting Immanuel and IIHL over the matters covered by the order.

Despite the injunction, the EFCC filed a criminal charge against Immanuel and IIHL before the Lagos State High Court, Ikeja Division, on October 7, 2025.

The commission alleged that Immanuel induced Adebutu to invest $1.5 million under the guise of financing projects associated with Chappal Petroleum Development Company Ltd., IIHL and Chappal Energies Mauritius Ltd.

On March 11, 2026, the EFCC arraigned Immanuel and IIHL before Justice Mojisola Dada of the Lagos State High Court on a two-count charge bordering on forgery and obtaining money by false pretences.

However, on July 1, 2026, Immanuel, through his counsel, Mr Oluseun Awonuga (SAN) and E.B. Aigbe, approached the FCT High Court for further injunctive reliefs.

The applicants sought an anti-suit injunction restraining the EFCC from taking further steps in the prosecution, arguing that the criminal proceedings violated the September 11, 2025, order.

They also sought an order preventing the commission from relying on, tendering in evidence or otherwise using documents already before the FCT High Court in the criminal proceedings.

The claimants comprised Chappal Energies Mauritius Ltd., suing on behalf of its directors, shareholders, officers, staff and management; IIHL; and Immanuel.

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The respondents were the Attorney-General of the Federation, the EFCC, the Nigeria Police Force, R28 Ltd., Biswal Ltd. and Adebutu.

The latest ruling underscores the court’s position that existing judicial orders must be obeyed unless overturned or lawfully discharged, even where a party disagrees with the decision.