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Dozy Mmobuosi Fined $250 Million in SEC Fraud Case
Nigerian entrepreneur Dozy Mmobuosi has been hit with a substantial $250 million fine following a fraud case filed by the U.S. Securities and Exchange Commission (SEC). The ruling marks a dramatic setback for Mmobuosi, who had recently made headlines with his bid to acquire Sheffield United, a historic English football club.
The decision was handed down by Judge Jesse M. Furman of the U.S. District Court for the Southern District of New York. The court found that Mmobuosi and his associated businesses—including Nasdaq-listed Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings—failed to respond or defend themselves against the SEC’s civil action filed in December.
The SEC charged Mmobuosi with orchestrating a large-scale fraud by falsifying the financial statements of his companies to deceive international investors. The allegations paint Mmobuosi’s business operations as largely fabricated, with claims of significant assets, revenues, and operational scale in the fintech and agricultural technology sectors being grossly overstated.
Tingo Group, under Mmobuosi’s leadership, had touted a customer base of over nine million Nigerian farmers and a substantial food processing operation. However, the SEC’s investigation revealed that these claims were highly inflated. For instance, Tingo Mobile, a subsidiary of Tingo Group, reported having $461.7 million in cash and cash equivalents for 2022, but the SEC found the actual amount was less than $50.
The fraud came to light after U.S.-based short-seller Hindenburg Research published a report last year labeling Tingo Group as an “exceptionally obvious scam.” This revelation led to a dramatic 60% drop in Tingo Group’s stock price and intensified scrutiny of Mmobuosi’s business practices.
In response to the fraud allegations, the SEC suspended trading in shares of Tingo Group and Agri-Fintech Holdings, citing concerns over the accuracy and reliability of the publicly available information.
The court’s ruling not only imposes a significant financial penalty on Mmobuosi but also prohibits him from serving as a director of any public company, effectively ending his corporate career.
Kano State Governor Abba Kabir Yusuf has directed all four emirates in the state to begin preparations for the upcoming Sallah Durbar Celebration.
The governor’s spokesperson, Sanusi Bature Dawakin Tofa, confirmed this in a statement, emphasizing that the event is a cherished tradition where citizens gather to witness Emirs on horseback and celebrate in grand style.
Tofa assured that security agencies will be fully engaged to ensure the safety of both residents and visitors during the festivities.
Governor Yusuf also praised the Emirs for maintaining a harmonious relationship since their appointments, describing it as unprecedented in Kano’s history.
Additionally, the Kano State Emirate Council is set to be inaugurated in April. The governor stated that its operational guidelines and ethics would be outlined on the inauguration day.
Impeached Governors in Nigeria’s Fourth Republic
Before President Bola Ahmed Tinubu declared a state of emergency in Rivers and suspended Governor Siminalayi Fubara, his deputy Ngozi Nma Odu, and state lawmakers over the ongoing political crisis, there were already moves to impeach Fubara.
Had he been impeached, Fubara would have joined a list of Nigerian governors removed from office since the country’s return to democracy in 1999. Below is a list of impeached governors and the circumstances surrounding their removal:
1. Diepreye Alamieyeseigha (Bayelsa State, 2005)
Alamieyeseigha was Bayelsa’s first civilian governor in the Fourth Republic, elected in 1999 and reelected in 2003. However, in 2005, he was impeached over allegations of corruption, including theft of public funds and money laundering. Two years later, he pleaded guilty to six charges and was sentenced to prison.
2. Rashidi Ladoja (Oyo State, 2006)
Ladoja governed Oyo State from 2003 until January 2006, when state lawmakers impeached him. Christopher Alao-Akala was sworn in as his replacement. However, Ladoja was reinstated in December 2006 after a court ruling nullified his removal. He later claimed his impeachment was due to his opposition to former President Olusegun Obasanjo’s third-term bid.
3. Ayo Fayose (Ekiti State, 2006)
Fayose, elected in 2003, was impeached in 2006 alongside his deputy, Biodun Olujimi, over allegations of corruption, including embezzling funds meant for the state’s poultry project. Twenty-four out of 26 lawmakers voted for their removal. Although Fayose fled at the time, he later returned and contested again. The Supreme Court eventually ruled that his impeachment was unlawful.
4. Peter Obi (Anambra State, 2006)
Peter Obi, who later became the Labour Party’s presidential candidate in 2023, was impeached just six months into his tenure as Anambra governor. He claimed he was removed for refusing to inflate the state budget. He challenged his impeachment in court and won, returning to office in February 2007.
5. Joshua Dariye (Plateau State, 2006)
Dariye faced impeachment proceedings in October 2006 after being linked to money laundering. Only eight out of 24 lawmakers initially issued an impeachment notice, which he contested. However, the following month, he was removed, and his deputy, Michael Botmang, took over. The Supreme Court later reinstated him, but his tenure ended in 2007. That same year, the EFCC accused him of diverting N1 billion in state ecological funds.
6. Murtala Nyako (Adamawa State, 2014)
Nyako was removed in 2014 over allegations of misappropriating N17 billion, illegal salary deductions, and misusing local government funds. He and his deputy, Bala Ngilari, received impeachment notices in June 2014, and a month later, he was removed from office. Ahmadu Umaru Fintiri, the state’s house speaker at the time, was sworn in as acting governor.
These impeachments highlight the political turbulence that has shaped Nigeria’s democratic governance over the years.
The 2023 presidential candidate of the Labour Party, Peter Obi, has strongly criticized President Bola Tinubu’s declaration of a state of emergency in Rivers State, calling it “unconstitutional and reckless.”
In a statement on Wednesday via X, Obi accused Tinubu of undermining democracy and disregarding the rule of law. He described the move as a dangerous attempt to tighten control over the state.
“The declaration of a state of emergency in Rivers State is not just reckless—it is a clear attempt to return us to a state of nature and tighten its grip on power at all costs,” Obi stated.
He further argued that the political crisis in Rivers does not justify suspending Governor Siminalayi Fubara, his deputy, and state lawmakers. Obi accused the federal government of selectively interpreting Section 305(1) of the 1999 Constitution to serve its own interests.
“A state of emergency does not mean an elected Governor can be removed unilaterally. This decision does not align with democratic norms or good governance. Instead, it appears to be a predetermined action serving specific interests rather than the collective good of the people of Rivers State and Nigeria,” he said.
Obi warned that the move could set a dangerous precedent that threatens democracy, the rule of law, and the separation of powers. He also linked it to previous electoral irregularities, stating that such actions would push Nigeria toward lawlessness and anarchy.
He urged the National Assembly and other stakeholders to reject the emergency declaration, emphasizing that allowing it to stand would deepen the culture of impunity and weaken democratic institutions.
Kano gov approves Sallah durbar preparations for emirates
Nigerian governors that have been impeached since 1999
‘It’s unconstitutional, reckless,’ Peter Obi condemns emergency rule in Rivers
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