The Federal High Court in Abuja has acquitted businessman Aliyu Abubakar, Malabu Oil and Gas Limited, and six other companies of money laundering allegations linked to the controversial OPL 245 oil transaction.
Delivering judgment on Thursday, October 15, 2026, Justice Inyang Ekwo ruled that the Economic and Financial Crimes Commission (EFCC) had failed to establish its case against the eight defendants beyond reasonable doubt.
The decision brings the long-running criminal prosecution, which began in 2016, to an end at the Federal High Court, although the ruling remains subject to any lawful appeal.
Why the Federal High Court Dismissed the EFCC Charges
Justice Ekwo identified serious weaknesses in how the anti-corruption agency investigated and prosecuted the allegations.
According to the court, the investigation had not been properly completed before the defendants were charged. The judge found that the prosecution failed to provide sufficient evidence to support the allegations.
He also criticised the EFCC for continuing with the case despite receiving advice from the Office of the Attorney-General of the Federation in 2018 that the available evidence was insufficient to justify prosecution.
The judge stressed that prosecuting authorities must conduct proper investigations and establish the facts before bringing criminal charges.
After examining the evidence, the court concluded that the prosecution had not met the legal standard required to secure a conviction.
Malabu Oil, Aliyu Abubakar and Six Companies Cleared
The case, registered as FHC/ABJ/CR/268/2016, involved 43 counts connected to allegations of unlawful financial transactions arising from the disputed OPL 245 oil block deal.
Apart from Malabu Oil and Gas Limited and Aliyu Abubakar, the defendants included A-Group Construction Company Limited, Rocky Top Resources Limited, Mega Tech Engineering Limited, Novel Properties and Development Company Limited, Imperial Union Limited, and Carlin International Nigeria Limited.
The EFCC had alleged that transactions involving approximately $1 billion and N673 million amounted to money laundering under Nigerian law.
Among the transactions questioned by prosecutors were transfers of approximately $401.54 million and $400 million into accounts associated with Malabu Oil.
The prosecution alleged that the funds were connected to unlawful activities surrounding the oil block transaction.
All eight defendants denied wrongdoing.
Justice Ekwo ultimately ruled that the evidence presented was inadequate to establish the alleged offences, resulting in their discharge and acquittal.
Court Also Clears Abubakar in Separate Money Laundering Case
The Federal High Court also delivered a separate judgment concerning Aliyu Abubakar and financial transactions previously linked to former Attorney-General of the Federation Mohammed Bello Adoke.
The EFCC had accused the businessman of involvement in money laundering transactions, including allegations connected to N300 million.
In April 2024, the same court had cleared Adoke after finding that prosecutors failed to establish a sufficient case requiring him to present a defence.
Abubakar, however, was ordered to defend certain outstanding allegations.
In Thursday’s judgment, Justice Ekwo found that the prosecution had still failed to prove the remaining allegations against the businessman.
The court also raised concerns about the reliability of forensic evidence involving signatures examined from photocopied documents rather than original records.
Abubakar was consequently acquitted in the separate proceedings.
How the Controversial OPL 245 Oil Deal Began
The latest judgment marks another development in a dispute that began nearly three decades ago.
Oil Prospecting Licence 245, commonly called OPL 245, covers a deepwater oil block off Nigeria’s Niger Delta.
The Nigerian government originally awarded the licence to Malabu Oil and Gas Limited in 1998, during the military administration of General Sani Abacha.
Former Petroleum Minister Dan Etete had an ownership interest in Malabu, raising questions about conflicts of interest surrounding the original allocation.
The controversy intensified in 2001 when the administration of President Olusegun Obasanjo revoked Malabu’s licence, setting off years of litigation over the oil block.
In 2006, the federal government reached a settlement that restored Malabu’s rights, although disagreements involving the company, Shell and the government continued.
A further agreement was reached in 2011 under President Goodluck Jonathan’s administration.
The transaction involved international energy companies Shell and Eni paying approximately $1.3 billion in connection with the acquisition of rights to OPL 245.
About $1.09 billion was designated as compensation to Malabu for surrendering its interests in the block.
The movement of these funds later attracted investigations in Nigeria and abroad over allegations that portions of the payments had been diverted for improper purposes.
Previous Court Decisions and International Investigations
The OPL 245 dispute became the subject of criminal proceedings, civil lawsuits and regulatory investigations in multiple countries.
In March 2021, a court in Milan acquitted Shell, Eni and other defendants in a corruption case involving the oil block transaction.
The criminal acquittals were subsequently finalised in 2022 after prosecutors withdrew their appeal.
In Nigeria, several related prosecutions also suffered setbacks, including the 2024 decisions clearing Mohammed Adoke.
Meanwhile, in March 2026, President Bola Tinubu’s administration announced a separate commercial settlement with Eni concerning the development of the OPL 245 asset.
The agreement provided for the conversion of the licence into four petroleum leases and licences, opening a route towards future exploration and production.
What the October 15 Judgment Means
Thursday’s ruling represents a significant legal victory for Abubakar, Malabu Oil and the other defendants after years of criminal proceedings.
It also places renewed attention on the importance of thorough financial investigations, reliable evidence and adherence to proper prosecutorial procedures in high-profile corruption cases.
However, the judgment addresses the specific criminal charges brought before the Federal High Court and should not be confused with the separate commercial settlement or rulings delivered by foreign courts.
For now, the latest decision adds another important chapter to Nigeria’s long-running OPL 245 controversy, one of the country’s most closely scrutinised oil sector disputes.
Verification: The October 15 court findings are supported by contemporaneous reports from Vanguard and Nairametrics. The historical and international context is supported by published energy-company records, Reuters reporting and the Nigerian Presidency’s announcement.
