N19m Fraud Allegations: Ikwuano LGA Chairman’s N3.1bn Defamation Suit Against Journalist Stalls

By Chidinma Omar

Did N19 million disappear from “Ikwuano LGA funds? As a high-profile defamation battle unfolds in court, fresh questions are emerging over transparency, accountability, and access to public records.”

“The Abia State High Court has adjourned the N3.1 billion defamation suit filed by Ikwuano LGA Chairman Anthony Nwaubani against journalist Tony Icheku over reports alleging N19 million financial impropriety. The case was delayed to allow service of court processes on additional defendants, while a separate FOI dispute over local government finances continues to generate controversy.”

“The legal battle between Ikwuano Local Government Chairman Anthony Nwaubani and journalist Tony Icheku has taken a new turn after a court adjourned a N3.1 billion defamation suit linked to allegations of N19 million financial impropriety. Beyond the courtroom drama, the controversy has expanded into a Freedom of Information dispute over local government finances, procurement records, and market revenues. The case is attracting attention amid growing concerns about transparency and fiscal accountability in local government administration across Abia State.”

The first hearing on Tuesday June 16, 2026 of the defamation suit brought by the Executive Chairman of Ikwuano LGA of Abia State, Mr Anthony Nwaubani against journalist and blogger, Tony Icheku and two others at Abia State High Court, Ikwuano Division suffered early adjournment as the counsel to Nwaubani, Mssrs Dominic Nwachukwu in an applications asked for more time in order to serve the two other defendants, namely Isdore Onyekachi and Emmanuel Asiegbu via substituted service

In a related development, Nwaubani has refused to respond to an Freedom of Information Act, (2011) application requesting access to records and information maintained by the Executive Chairman, Ikwuano LGA, Anthony Nwaubani regarding the construction of the two-storey building he flagged off at Isiala headquarters of the LG. The FoI application also requested receipts from the weekly revenue realised from the weekly markets of Ndioro and Ariam-Usaka

When the defamation case was called up before Justice C. C. Udeogu-Jones, Nwaubani’s counsel Nwachukwu told the judge that he had filed an application for substituted service on the two defendants claiming that the court bailiff had been unable to serve them the court summons. He appealed to the judge for more time to enable the bailiff effect the substituted service on the defendants as contained in his application before the court.

The counsel to the first defendant, Mssrs A. I. Ogbuabia did not raise any objections to his request and the judge granted his plea and the suit was adjourned indefinitely, but dependant on the service of the summons on the two other defendants

The Ikwuano LG chairman had dragged Icheku and two others to court alleging false and defamatory publication in a news report titled “Ikwuano LG Boss, Nwaubani Snobs Inquiries on Financial Impropriety, Poor Leadership Allegations”, authored by Icheku published in dailyledger.com.ng

In a statement of claims Nwaubani has demanded for N2 billion being claims for general damages for defamation; N1 billion being claims for exemplary damages and the sum of N1,220 million for litigation costs, all totalling N3.10 billion

Icheku in a reaction to the suit number HC/Il/2026 which was served him on Saturday, March 14, 2026, declared the suit as a welcome development. “We have categorically confirmed that the sum of N19 million was siphoned from the coffers of Ikwuano LGA under the watch of Mr Nwaubani as the Executive Chairman, we are praying that the court as a temple of truth shall in the constitutional requirement of transparency and accountability help us all unveil the fine details how this humongous amount was embezzled”

In a related development, a consortium of journalists have applied for a judicial review of Nwaubani’s refusal to respond to a Freedom of Request. The judicial review is a preliminary step towards the court granting an Order of Mandamus compelling Nwaubani to grant the request made to his office early May, 2026

Excerpts from the request reads as follows:
” FREEDOM OF INFORMATION (FOI) REQUEST REGARDING CONSTRUCTION OF TWO STOREY BUILDING AT ISIALA, HEADQUARTERS OF IKWUANO LGA

Specifically, we are requesting the following information:

i. Whether the two-storey building being constructed through direct labour or by contract?

ii. If by contract, kindly furnish us with copies of the invitation to tender for the project in compliance to the principles of open competitive bidding, transparency, and accountability according to the provisions of the Public Procurement Act, PPA, 2007 or its domesticated version by Abia State Government

iii. Copies of the procurement records for the construction of the two-storey building

iv. Evidence of the total amount disbursed to the contractor as of March 2026.

iv. The expected completion date and current project status.

v. If the two-storey building is being constructed through direct labour, kindly avail us of the information requested in (iii) plus records pertaining to other payments regarding the building.

vii. Also furnish us with receipts from the weekly revenue realised from the weekly markets of Ndioro and Ariam-Usaka

We would prefer to receive this information in either hard copy or electronic format via email.

According to the provisions of the FOI Act, section 4, we look forward to receiving this information within seven (7) working days of your receipt of this application”

The seven (7) working days leeway has since elapsed.

In its latest report titled “The Missing Tier,” the civic-tech non-profit organisation, BudgIT listed Abia State among the 18 States that failed to publish any local government budget data on official platforms, positioning it among the worst performers in fiscal transparency nationwide.

BudgIT’s classification of Abia among States that have effectively refused to disclose local government financial data underscores a deeper structural issue. Central to this concern is the controversial legal framework enacted by the Abia State House of Assembly, which authorizes the State government to manage local government funds through the Joint Local Government Account system. This arrangement has continued to draw criticism from civic actors who argue that it undermines the financial autonomy of the constitutionally recognized third tier of government