UK Court orders forfeiture of £1m property linked to Nigerian Senator’s wife

The High Court of Justice in the United Kingdom has ordered the forfeiture of a £1 million luxury property occupied by the Lord Mayor of Leeds, Abigail Katung, wife of Nigerian Senator Sunday Katung, who represents Kaduna South in the Nigerian Senate.

In a landmark ruling delivered on June 6, Justice Jay of the King’s Bench Division declared the property “recoverable” under the UK’s Proceeds of Crime Act 2002 (POCA), citing serious concerns over the origin of funds used in its acquisition.

The decision authorizes the UK’s National Crime Agency (NCA) to take possession of the property.

The property, initially owned by Mansoor Hussain, a British businessman accused of laundering money for organized criminal networks in Northern England, came under scrutiny after it was sold to Abigail Katung in 2015. That same year, her husband, Sunday Katung, was elected into Nigeria’s House of Representatives.

According to court documents, Mrs Katung signed a contract of sale and paid a £400,000 deposit in two installments to Hussain’s bank account.

The transactions raised red flags after the origin of £360,000, traced to Nigeria, was found to lack transparency and violate foreign exchange protocols.

In court, Mrs Katung admitted to using the parallel (black) market to transfer the funds, citing stringent forex restrictions imposed under former President Muhammadu Buhari’s administration in 2015. She further stated that part of the money originated from a N120 million loan obtained by her husband in Nigeria.

The funds, she claimed, were converted through a Bureau de Change (BDC) and deposited into an account under her company, 1st Resource, before being transferred to the UK.

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Despite these explanations, Justice Jay ruled that the documentation provided was “grossly insufficient” and described Mrs Katung’s narrative as “inconsistent.” Notably, she failed to provide adequate evidence tracing the financial trail or statements from her husband supporting the transaction.

“Mrs Katung’s witness statements in these proceedings did not address how the payments were made… there is no witness statement from her husband. These are telling omissions from which I draw an adverse inference,” the judge stated.

A letter provided by Mrs Katung from a company named My Honey Oil Interbiz Ltd in support of the transaction was dismissed. The court cited Central Bank of Nigeria records, which do not list the company as a licensed BDC.

The court concluded that Mrs Katung’s financial dealings were structured to circumvent Nigeria’s forex regulations and, therefore, violated UK anti-money laundering laws. As a result, the £400,000 deposit she paid will also be forfeited, with no credit or refund due.

“Mrs Katung was only conducting a business in foreign exchange transactions to circumvent Nigerian foreign exchange regulations and/or to avoid a punitive exchange rate,” the judge stated.

Mrs Katung’s legal counsel conceded that the funds in question fall under the jurisdiction of POCA, effectively acknowledging their liability under the anti-money laundering regime.

Importantly, Justice Jay stopped short of accusing Mrs Katung of knowingly engaging in criminal behavior, stating:

“I do not find that she was cognisant of what Mr Hussain was up to.”

This clarification appears to mitigate the reputational damage for the current Lord Mayor of Leeds, though the ruling deals a significant blow to her public profile and financial interests.

The NCA is now entitled to take possession of the property, with the possibility of pursuing further financial remedies. The judge also awarded full legal costs to the agency and directed that both parties draft a final forfeiture order.

Abigail Katung, originally from Zaria, Kaduna State, Nigeria, moved to the UK in 2000 to study at the University of Leeds. In 2024, she made history as the first Black African elected as Lord Mayor of Leeds.

“Since arriving in Leeds in 2000, the city quickly became my cherished second home,” she said during her inauguration last year.

Her husband, Senator Sunday Katung, continues to serve in the Nigerian Senate, representing the Kaduna South Senatorial District.