The former oil chief was charged by the Economic and Financial Crimes Commission after he admitted owning over $9.8 million cash found in a house that also belongs to him in Kaduna State.
On Thursday, he pleaded not guilty to the charge filed by the EFCC.
Justice Ahmed Mohammed then ordered he be remanded in Kuje prison pending the determination of his bail application on March 21.
Delivering the short ruling, Justice Ahmed Mohammed said Mr. Yakubu, having pleaded not guilty to the charges, was fully under the custody of the court.
Mr. Yakubu’s lawyer, Ahmed Raji, had urged the court to grant his client bail on very liberal conditions, saying the former NNPC chief had no criminal records and that the allegations against him were bail-able.
Mr. Raji argued that his client had made the investigation and other matters relating to the trial easy be returning to Nigeria, upon invitation, and presenting himself for questioning.
Mr. Raji also told the court that his client was sick and required permission to travel abroad for medical treatment.
The EFCC opposed the application.
Its lawyer, Ben Ikani, told the court that the commission and the Federal capital Territory had facilities to ensure the proper treatment of Mr. Yakubu.
He added that the medical condition of the defendant had been constantly reported to him on a daily basis, since the defendant was arrested by the EFCC.
Mr. Ikani opposed the application for release of Mr. Yakubu’s international passport.