U.S. Jails Nigerian Monarch Joseph Oloyede for $4.2M COVID Fraud

The international spotlight has turned to Nigeria once again, this time for the wrong reasons. On Tuesday, August 26, 2025, a U.S. federal court sentenced Oba Joseph Oloyede, the Apetu of Ipetumodu in Osun State, to 56 months in prison for his role in a $4.2 million fraud scheme that exploited COVID-19 relief programs.

The case has not only embarrassed the Nigerian traditional institution but has also raised questions about accountability and integrity among public figures who wield influence both at home and abroad.

The Fraud Scheme

According to U.S. prosecutors, Oloyede, a 62-year-old dual U.S.-Nigerian citizen living in Ohio, masterminded a sophisticated conspiracy during the pandemic. Court documents revealed that he and his accomplices created fake companies and fraudulent claims to siphon millions of dollars from relief programs designed to support struggling businesses and citizens during the COVID-19 crisis.

By exploiting the chaos of the pandemic, the monarch and his network successfully funneled $4.2 million in illicit funds, money meant for genuine victims of the global health and economic disaster.

Guilty Plea and Sentence

In court, Oloyede pleaded guilty to conspiracy charges, acknowledging his role in the elaborate fraud. U.S. authorities described his actions as a deliberate abuse of trust, noting that he leveraged his dual citizenship and access to both Nigerian and American systems to commit the crime.

Along with his prison sentence of 56 months (4 years and 8 months), the judge ordered Oloyede to pay $4.4 million in restitution, effectively ensuring that he must return the stolen money.

Implications at Home: Possible Dethronement

Back in Nigeria, the scandal has sent shockwaves through Osun State and beyond. As the Apetu of Ipetumodu, Oba Joseph Oloyede occupied a position of respect and cultural authority. His conviction abroad has now placed his throne in jeopardy.

Community leaders, legal analysts, and indigenes of Ipetumodu have begun calling for his dethronement, arguing that his actions amount to a betrayal of public trust and have brought disrepute to the traditional institution.

If removed, Oloyede would join the growing list of Nigerian monarchs disgraced by scandals that have tarnished both personal reputations and the credibility of cultural leadership in the country.

The Bigger Picture: COVID-19 Fraud and Nigerian Image

The case underscores two pressing issues which are the global abuse of COVID-19 relief programs, billions of dollars worldwide were lost to fraud during the pandemic, with scammers exploiting loopholes in emergency funding systems.

The other is Nigeria’s recurring image crisis, which is the involvement of a traditional ruler in such a large-scale fraud reinforces negative stereotypes about corruption and fraud linked to Nigerian elites abroad.

For many Nigerians, the conviction of a sitting monarch in a foreign court is both humiliating and deeply troubling, especially at a time when the nation continues to battle internal corruption scandals.

With his sentencing, Joseph Oloyede will serve his time in a U.S. federal prison, far from the throne he once occupied in Ipetumodu. As he prepares to repay $4.4 million in stolen funds, his fate back home also hangs in the balance.

Whether dethroned or not, the monarch’s downfall stands as a stark reminder of how quickly prestige can crumble when trust is betrayed.