The Economic and Financial Crimes Commission (EFCC) has arraigned a Lagos-based businessman, Sarumi Babafemi, over an alleged N206 million fraud at the Special Offences Court in Ikeja.
Babafemi was docked on Tuesday, January 20, 2026, before Justice Rahman Oshodi by the EFCC, Lagos Zonal Directorate 1. He was charged alongside three firms linked to him: 606 Autos Limited, 606 Music Limited and Splash Off Entertainment Limited.
According to the anti-graft agency, the defendant and his companies are facing a five-count charge bordering on conspiracy, concealment and transfer of proceeds of crime amounting to N206 million. The charges are said to be contrary to Section 332(1) of the Criminal Law of Lagos State, 2011, and punishable under Section 332(3) of the same law.
The prosecution alleged that Babafemi, while serving as managing director and chief executive officer of the companies, conspired with Ismail Mustapha, popularly known as Mompha, Ridwan Momodu Allison, also known as Osama, and one Richard Ugbah, who are all currently at large.
One of the counts stated that between 2013 and 2018, the defendant allegedly used his companies to conceal the origin of funds and transferred N37.6 million to Omojadesola Shittu Allison, funds the EFCC claimed were proceeds of unlawful activity.
Another count alleged that between 2015 and 2018, Babafemi used the same companies to conceal and transfer N93 million to Olanrewaju Ibrahim Oriyomi, knowing or reasonably expected to have known that the money was linked to an unlawful act.
Babafemi pleaded not guilty to all the charges when they were read in court.
Following the plea, prosecution counsel, Ayanfe Ogunsina, asked the court to remand the defendant in a correctional facility and to fix a date for the commencement of trial.
However, defence counsel, Kunle Adegoke, SAN, told the court that he had only received the charge a day earlier and had worked overnight to prepare a bail application, which was already being processed. He urged the court to release the defendant to him, assuring that Babafemi would be produced in court on the next adjourned date.
Justice Oshodi granted the application and ordered that the defendant be released to his counsel upon the filing of an affidavit of undertaking to produce him in court. The case was adjourned until March 24, 2026, for the commencement of trial.
