Femi Ashekun/
A case involving the Managing Director of the Ikeja Chamber of Commerce, Industry and Agriculture, Edward Olutoke, is drawing attention to the growing risks facing investors in Nigeria, after a Federal High Court in Ikoyi ordered the interim forfeiture of a hotel allegedly linked to him in a suspected forex investment fraud.
Justice A.O. Owoeye of the Federal High Court of Nigeria granted the interim forfeiture order on Wednesday following an ex parte application by the Economic and Financial Crimes Commission, which is investigating allegations that Olutoke obtained billions of naira from investors through what authorities describe as an unlicensed foreign exchange trading and investment scheme.
The property, valued at about N1.3 billion and identified as Responsible Leaders Hotel, is located on Ostra Close, Jobi Fele Way in Alausa, Ikeja.
According to the anti-graft agency, Olutoke allegedly convinced investors to part with large sums of money on the assurance that their funds would be placed in a “capital-guaranteed” forex trading programme promising steady returns.
In court filings, an EFCC investigator, Obed Tanko, said several petitioners claimed they were persuaded to invest after being told that the company behind the scheme was properly registered and accredited to conduct forex trading and investment services.
However, investigators said subsequent checks allegedly revealed that neither the suspect nor the organisation had the regulatory approvals required to operate such a financial scheme.
The commission further alleged that funds obtained from investors were diverted and used to acquire high-value assets, including the hotel now placed under interim forfeiture.
Moving the application, EFCC counsel, C.C. Okezie, argued that the property was reasonably suspected to have been acquired with proceeds of unlawful activities.
Justice Owoeye granted the request and ordered the temporary forfeiture of the property to the Federal Government pending the outcome of investigations and further court proceedings.
The judge also directed the commission to publish the interim forfeiture order in a national newspaper, inviting any interested party to appear before the court and show cause why the property should not be permanently forfeited to the government.
Although the allegations remain unproven in court, the case has intensified concerns among analysts about how structures associated with legitimate institutions can sometimes be used to win the confidence of unsuspecting investors.
The Ikeja Chamber of Commerce, Industry and Agriculture, which is registered in Lagos as a non-governmental organisation, describes itself as a body dedicated to promoting grassroots commerce and supporting entrepreneurs, farmers and small businesses.
On its platform, the chamber lists numerous membership benefits that portray it as a hub for business development and international partnerships.
Among the advantages it claims to offer members are affordable legal representation, free website development and online business visibility, access to local and international networks of business leaders and investors, opportunities to participate in global trade missions and exhibitions, subsidised rates for industry events, and advocacy before government authorities on behalf of members.
The chamber also advertises opportunities for businesses to secure partnerships with overseas companies seeking to operate in Ikeja and other parts of Nigeria, while promising brand visibility through its publicity channels and inclusion in its membership directory used by investors searching for local partners.
Analysts say such offerings can create a powerful perception of legitimacy and credibility, which in some cases may make potential investors less cautious when approached with financial opportunities linked to individuals or organisations associated with respected business platforms.
Financial crime experts note that this dynamic has become increasingly significant in Nigeria’s evolving investment environment, where economic pressures and the search for higher returns have driven many people toward alternative investment schemes outside the traditional banking sector.
Regulators have repeatedly warned members of the public to verify the registration and licensing status of investment platforms with the appropriate authorities before committing funds, particularly in cases involving forex trading, cryptocurrency and other high-risk financial instruments.
The EFCC said investigations into the allegations against Olutoke are continuing, emphasising that the interim forfeiture order does not amount to a conviction and that the suspect remains entitled to defend himself in court.
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