The Lagos State High Court in Ikeja has dismissed a ₦4.8 billion fraud case brought by the Economic and Financial Crimes Commission (EFCC) against Chief Cletus Ibeto, Chairman of Ibeto Energy Development Company.

The decision came after the EFCC’s counsel, Rotimi Jacobs (SAN), requested that the charges be withdrawn, citing a partial settlement between the parties involved.

According to Jacobs, Chief Ibeto refunded ₦3.2 billion to Chief Daniel Chukwudozie, the alleged victim, as part of an out-of-court settlement facilitated by the EFCC. He explained that after the last court session, both parties entered discussions mediated by the Commission, which led to the agreement.

Jacobs stated: “Following the last court session, the parties met with the EFCC to explore settlement options, which resulted in the defendants refunding ₦3.2 billion to the Commission.”

However, he noted two unresolved issues: allegations of forgery and a disputed $3 million claim that Ibeto denies receiving from the complainant. Despite these outstanding matters, Jacobs said the EFCC decided to withdraw the case in the interest of reconciliation.

The defence counsel, Adebayo Oshodi, supported the motion to strike out the case and confirmed the settlement. However, Oshodi disputed Jacobs’ claims about unresolved issues, insisting that all matters had been resolved through the agreement.

The case began in April 2023 with a 10-count charge against Chief Ibeto, Ibeto Energy Development Company, and Odoh Holdings Ltd. The charges included conspiracy, fraud, forgery, and the use of fraudulent documents.

The trial faced delays, including Chief Ibeto’s repeated absences from court, which led the former presiding judge, Justice Ismail Ijelu, to issue a warrant for his arrest in November 2023. Subsequently, the defendants challenged the court’s jurisdiction and accused Justice Ijelu of bias, prompting the Lagos State Chief Judge, Justice Kazeem Alogba, to reassign the case to Justice Ogala in February 2024.

While the case has been struck out following the refund and settlement, questions remain regarding the unresolved allegations of forgery and the disputed $3 million. The EFCC may revisit these issues in the future, but for now, the court’s decision brings the contentious legal battle to a close.

The settlement reflects a growing trend in Nigeria’s legal system, where alternative dispute resolution mechanisms are employed to expedite cases and reduce the backlog in courts. However, critics argue that such settlements may undermine justice in cases involving serious allegations like fraud and forgery.