Investors Cry Out, Say Over N50bn EMIS Telecoms Funds Trapped In FCMB

Some investors have cried out that their funds have been trapped  in the First City Monument Bank (FCMB), for several years, a development they said, could discourage foreign investors from being attracted to Nigeria.

They alleged that the trapped  funds as at 2025,  was  worth over N50 billion Naira, thereby calling on relevant government agencies to intervene and secure their investments, to boost confidence of foreign investors.

In a statement made available to newsmen,  two of EMIS’ US based investors; Mr. Alphonsus Ayetin and Mr. Phillip Njowusi,  both confirmed that the total debt owed to EMIS by FCMB to date, is in excess of fifty billion Naira.

In the statement titled, "Justice Delayed Is Investment Denied: A Diaspora Dream Betrayed in Nigeria", they said,  "In 1994, after more than two decades in the United States working at world-class firms such as Rockwell International and Northrop Grumman Corporation, Nigerian-American entrepreneur Emeka Onwuegbuzia returned home with a bold idea: build one of Nigeria’s first indigenous fixed wireless telecom companies."He founded EM-International Systems (EMIS Telecoms) in Lagos at a time when reliable phone service in Nigeria was scarce and demand was exploding. EMIS quickly gained thousands of subscribers. 

"To expand its network, the company sought a $5 million facility from the Cairo-based African Export-Import Bank (AFREXIM).Because EMIS had not yet met AFREXIM’s five-year operating requirement, it was advised to access the loan through a local correspondent bank.

 "That bank was First City Monument Bank (FCMB). What follows is a case study in how weak governance, regulatory failures and institutional delay can destroy not just a company, but faith in a nation’s investment climate. The Deal That Collapsed.

"Under the agreement, FCMB would act as lender to EMIS and guarantor to AFREXIM. EMIS pledged an all-assets debenture, domiciled subscriber revenues with FCMB, and authorized the bank to manage disbursements. Eight promissory notes of $500,000 each were issued in favour of the Canadian supplier, COMDEV International.

"After fees were deducted by both AFREXIM and FCMB, $4.58 million remained available for equipment purchase, installation and activation."A Tripartite Note Purchase Agreement was executed among AFREXIM, FCMB and COMDEV. Notably, EMIS — the borrower whose future depended on the funds — was excluded from this agreement.

"The contract required evidence of regulatory approvals, including compliance with Nigeria’s foreign exchange rules. "Yet within 24 hours of signing, FCMB wired the entire $4.58 million to COMDEV — covering both equipment and installation — despite conditions precedent that had not been satisfied. COMDEV allegedly absconded. No equipment was delivered. No network was built. No revenue was generated.The expansion that would have secured repayment and sustained growth never materialized. EMIS petitioned regulators. What the Regulators Found"In a July 10, 2012 report, Nigeria’s Central Bank of Nigeria (CBN) found that required Certificates of Capital Importation had not been processed and that FCMB had breached foreign exchange guidelines during a period when its FX dealership license was suspended.

"The CBN concluded that the bank had exhibited “utmost bad faith” and directed FCMB to refund subscription fees it held as custodian, reverse charges, pay accrued interest and issue an unconditional  letter of apology. Separately, the Economic and Financial Crimes Commission (EFCC) conducted a criminal investigation," the statement said. It explained that in its April 28, 2017 report, the EFCC concluded that EMIS had been systematically defrauded and recommended prosecution for conspiracy, fraud and corporate negligence. 

"These were not media allegations. They were findings of Nigeria’s apex financial regulator and its principal anti-corruption agency.Yet enforcement stalled. Presidential Directives — and Delay. Then-President Muhammadu Buhari directed the Attorney General to address the matter. "The former Attorney General, Abubakar Malami, ordered a criminal investigation and later directed that prosecutions proceed consistent with EFCC findings. Still, implementation faltered.

" Under the current administration of President Bola Tinubu and Attorney General Lateef Fagbemi, meetings were convened in late 2024 and early 2025 to review submissions from all parties.

 "A final resolution meeting was scheduled for May 2025 — then postponed. No new date has been formally communicated. Nearly three decades after a diaspora entrepreneur returned home to build infrastructure, the matter remains unresolved," the statement  submitted.

They alleged that the situation led to the untimely demise of the EMIS founder.

 "This is not merely a corporate dispute.The stress of the protracted battle took a devastating toll. "Mr. Onwuegbuzia suffered a second stroke and died in February 2021. His wife passed away less than two years later. 

"They left behind three daughters, unpaid workers and American investors — family members and partners — who had believed in a dream of nation-building. Their story carries implications far beyond one company.

"Nigeria, like many developing economies, regularly calls on its diaspora to invest back home. Governments tout opportunity, patriotism and reform. But capital flows where contracts are enforced, regulators act decisively and political influence does not override due process," they said.

When contacted by newsmen for comments over the development, EMIS Company Secretary,  Chidozie Nwandu, promised to prepare an executive  media brief on the development, which was yet to be made available as at time of filing this report.

He however, confirmed the alleged funds withheld at FCMB.

When the Corporate Affairs/Media Relations Manager, FCMB, Rafiu Mohammed  was contacted over the development on phone, his end of the line went silent.

Efforts were made for several days to reach him via phone calls and messages to his WhatsApp line; he is yet to reply to the messages or return calls as at time of filing this report.