Again, Court to Decide on Bail for Afriq Arbitrage CEO July 22

The Federal High Court in Abuja will on July 22 decide whether Jesam Michael, founder and CEO of Afriq Arbitrage System (AAS), should be granted bail—again.

Michael, who is currently being held at the Correctional Centre in Abuja, is facing a slew of criminal charges brought by the Economic and Financial Crimes Commission (EFCC), including alleged fraud totalling over $844,000, $10,000, and ₦590 million. 

This is the third time his legal team is seeking bail, noting deteriorating health and the constitutional presumption of innocence.

Justice Obiora Egwatu set the new date after hearing arguments from Michael’s lead counsel, Kanu Agabi SAN, and EFCC’s prosecuting lawyer, Geraldine Ofulue.

According to the EFCC, Michael operated Afriq Arbitrage System Ltd without proper authorisation. Between September 2022 and June 2023, the company allegedly solicited funds from the public under the guise of cryptocurrency arbitrage trading. 

Investigators say over 50,000 investors were convinced, largely through aggressive social media marketing, to deposit money in exchange for promises of unusually high returns.

The EFCC alleges that Michael and his company were neither licensed by the Central Bank of Nigeria (CBN) nor registered with the Securities and Exchange Commission (SEC) to carry out financial services. 

However, AAS somehow obtained a SCUML (Special Control Unit Against Money Laundering) certificate, leading to serious questions about internal checks within the EFCC itself.

Among the seven counts filed against him are operating without a licence under the Banks and Other Financial Institutions Act (BOFIA) 2020, advance fee fraud under the Advance Fee Fraud and Other Related Offences Act of 2006, and money laundering related to the suspected conversion of ₦590 million traced to the sale of seized properties.

This isn’t Michael’s first run-in with the court. Back in May, Justice Emeka Nwite refused to hear his bail application until formal charges had been filed. By June 10, following his arraignment on the seven-count charge, he was remanded in custody, with Justice Egwatu noting the massive scale of the alleged fraud and the need for a speedy trial.

Now, Agabi SAN is pushing once more for bail, stressing that Michael is unwell and that the court has the discretion to grant conditional release. “If a defendant cannot meet his bail terms, it is an illusion,” Agabi said, urging the court to adopt terms his client can realistically meet. He assured the court that Michael was not a flight risk and “won’t run away.”

But the prosecution isn’t convinced.

Ofulue described the application as an abuse of court process. “There is no letter from the Correctional Centre stating that it is unable to cater to the defendant’s medical needs,” she argued.

She pointed out that Michael had already been referred to the University of Abuja Teaching Hospital for treatment, proof, in her view, that his medical issues are being addressed appropriately while in custody.

She also reminded the court of the EFCC’s earlier claim that Afriq Arbitrage CEO was arrested while trying to flee the country, adding that the weight of the evidence and the scale of the losses make him a high flight risk.

Beyond the courtroom, the toll of the case is with tens of thousands of alleged victims, many of whom were attracted by bold promises of quick returns from cryptocurrency investments.

The EFCC estimates that more than 50,000 people may have been impacted, with millions of naira and dollars funnelled into AAS under false pretences.

For now,Afriq Arbitrage CEO remains in custody. The court is expected to give its ruling on his fresh bail application on July 22. 

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