Nigerian businessman Oba Otudeko summoned to court over $24 million fraud

Key Points

• Nigerian businessman Oba Otudeko faces a 13-count charge over an alleged N30 billion loan fraud, with his arraignment set for May 8.
• A former First Bank staff accused Otudeko of financial misconduct, claiming she was wrongfully dismissed after facilitating N12 billion in loans.
• The Supreme Court upheld N13.5 billion ($17.1 million) debt repayment order against Otudeko, intensifying his financial and legal troubles.

Nigerian businessman Oba Otudeko has been summoned by a Lagos Federal High Court over a 13-count charge filed by the Economic and Financial Crimes Commission (EFCC) related to an alleged N30 billion ($24 million) loan fraud.

The case adds to his growing legal troubles, marking another chapter in the challenges facing the former FBN Holdings chairman and founder of Honeywell Group.

Court orders arraignment before jurisdiction challenge

At Monday’s hearing, the judge ruled that Otudeko must be arraigned before the court can consider any jurisdictional challenge. “Any filing by a defendant in a criminal case can only be addressed after a plea is entered,” the judge stated, emphasizing that legal arguments must follow due process.

Otudeko is facing the charges alongside former First Bank CEO Stephen Onasanya, ex-Honeywell Flour Mills board member Soji Akintayo, and Anchorage Limited. The EFCC alleges they fraudulently secured N31.3 billion in loans between 2013 and 2014, disguising transactions through various firms.

The court has scheduled the case for May 8, with 12 witnesses—including representatives from the Central Bank of Nigeria (CBN) and First Bank—set to testify.

Former First Bank staff accuses Otudeko of financial misconduct

The case took another turn in August 2024 when Adesuwa Ezenwa, a former First Bank relationship manager, filed a lawsuit against Otudeko, accusing him of financial misconduct.

She claimed she was wrongfully dismissed in 2016 after helping facilitate N12 billion ($7.6 million) in loans that were allegedly diverted to Otudeko-linked firms—V-Tech Ltd and Ontario Oil and Gas—instead of their intended recipient, Stallion Group.

Ezenwa is seeking N500 million ($320,000) in damages and N25 million ($15,600) in legal fees. She argues that she had little control over loan approvals and was unfairly blamed for the scandal.

Supreme court upholds debt repayment order

Otudeko’s financial woes deepened further as the Supreme Court upheld rulings ordering him and his companies to settle an N13.5 billion ($17.1 million) debt.

His troubles with FBN Holdings date back to 2021 when he was removed as chairman. By 2023, Ecobank moved to seize his shares, accusing him of trying to dodge repayment by shifting assets through Barbican Capital Limited.

FBN Holdings and the CBN are also pushing to dismiss a lawsuit filed by Barbican Capital Ltd, a firm linked to Otudeko’s Honeywell Group. The dispute centers on Barbican’s 15.1 percent stake in FBN Holdings, which Ecobank claims was acquired to sidestep debt obligations.

With the EFCC preparing 12 witnesses, including investigators and financial experts, the trial is shaping up to be one of Nigeria’s most significant financial cases. The outcome could have major implications for Otudeko’s business empire and the broader banking sector.