Businessman arraigned for allegedly diverting N2.1m from iron rod deal in Abuja

A 36-year-old businessman, Mr Eze Shedrach, was arraigned on Tuesday before the Life Camp Magistrates’ Court in Abuja over allegations of diverting N2.1 million from a client in a transaction involving iron rods.

Mr Shedrach, who resides opposite the Mountain of Fire Church in Mpape, Abuja, faces charges of criminal breach of trust and cheating, offences listed under Sections 312 and 322 of the Penal Code.

According to the Prosecutor, Mrs Charity Nwachukwu, the incident began in July 2024 when the complainant, Mr Ikechukwu Obihara of Apo, Abuja, handed over N5 million to Mr Shedrach for the purchase of iron rods. Both parties had agreed that the materials would be stored in the defendant’s shop until needed.

However, in January 2025, Mr Obihara reportedly instructed Mr Shedrach to resell the rods so the proceeds could be used for personal commitments. 

Mrs Nwachukwu told the court that the defendant sold the materials but only transferred N2.9 million to the complainant and failed to account for the outstanding N2.1 million.

The prosecutor alleged that Mr Shedrach subsequently shut down his shop, kept the remaining funds for himself and went into hiding.

“All efforts made to recover the money proved abortive,” Mrs Nwachukwu said.

Police eventually traced and arrested the defendant after a period in hiding.

Mr Shedrach pleaded not guilty when the charges were read to him in court.

Presiding Magistrate Ramilatu Halilu granted him bail in the sum of N200,000 with two sureties in the same amount. She stipulated that the sureties must be employed by reputable organisations and reside within the court’s jurisdiction.

The case has been adjourned until 2 September 2025 for hearing.