A Federal High Court in Lagos has struck out a N20bn money laundering case brought against a former company director, Taiwo Ibitola, alongside her firm, Lexhan Investment Limited.
Justice Akintoye Aluko gave the ruling on Monday after the prosecution applied to discontinue the suit.
The defendants were earlier charged by the police on four counts relating to conspiracy, fraud, conversion, and possession of alleged proceeds of crime.
The matter, initially scheduled for arraignment on November 13, 2025, could not proceed due to the absence of both parties. It was subsequently adjourned to December 16, 2025, but the court did not sit, leading to another adjournment until March 16, 2026.
At the resumed hearing, the prosecuting counsel, M.Y. Bello, notified the court of an application dated February 26, 2026, seeking leave to withdraw the charges. He said the move was in the interest of justice and requested that the defendants be discharged, while reserving the right to revisit the case if necessary.
Defence counsel, Prof. Taiwo Osipitan (SAN), raised no objection to the withdrawal but urged the court to terminate the case permanently to prevent any future prosecution on the same matter.
He relied on Section 108(3) of the Administration of Criminal Justice Act, submitting that the court was empowered to acquit the defendants where a charge is withdrawn before the commencement of defence.
Osipitan also argued that the alleged offences predated the enactment of the Money Laundering (Prevention and Prohibition) Act, 2022, insisting that the defendants could not be tried under a law that was not in existence at the time of the alleged acts.
He further maintained that the dispute was essentially a family matter involving inheritance and property, rather than a criminal issue.
In his decision, Justice Aluko held that since the defendants had not appeared before the court and trial had not begun, the proper order was to strike out the charge.
He consequently discharged the defendants.
According to the charge marked FHC/L/781/C/2025, the police had alleged that Ibitola, in collaboration with others still at large, conspired in Lagos on or before March 5, 2024, to unlawfully convert shares and proceeds of assets valued at N20bn.
The assets were reportedly part of an inheritance left to Mrs Idowu Ashiru and other beneficiaries by their late father.
The prosecution further claimed that Ibitola, while serving as a director in Shonny Investment and Property Company Limited and Lexhan Investment Limited, diverted the assets for personal benefit with the intention of depriving the rightful beneficiaries.
The alleged offences were said to be contrary to provisions of the Money Laundering (Prevention and Prohibition) Act, 2022, as well as the Criminal Code Act.