The legal troubles of Nigerian billionaire Oba Otudeko have taken a new turn as the Economic and Financial Crimes Commission (EFCC) has filed a 13-count charge against him over an alleged N30 billion ($24 million) loan fraud. The Lagos Federal High Court has now summoned Otudeko to face trial, marking another chapter in the escalating legal challenges surrounding the former chairman of FBN Holdings and founder of Honeywell Group.
This latest case comes on the heels of multiple financial disputes, including a Supreme Court ruling upholding a debt repayment order against him and a separate lawsuit filed by a former First Bank staff member, Adesuwa Ezenwa, alleging financial misconduct.
EFCC’s Case: Arraignment Ordered Before Jurisdiction Challenge
At the court hearing on Monday, March 25, 2025, the presiding judge ruled that Otudeko must be arraigned before any jurisdictional objections can be heard. The judge emphasized that a defendant in a criminal trial must enter a plea before filing preliminary legal challenges, a ruling that set the stage for the trial’s next phase.
Otudeko is not the only one facing charges. Also listed as co-defendants are:
•Stephen Onasanya, former CEO of First Bank of Nigeria (FBN)
•Soji Akintayo, ex-board member of Honeywell Flour Mills
•Anchorage Limited, a company linked to Otudeko
According to the EFCC, the accused parties fraudulently secured N31.3 billion ($24.6 million) in loans between 2013 and 2014, allegedly disguising the transactions through various corporate entities. The prosecution has lined up 12 witnesses, including officials from the Central Bank of Nigeria (CBN) and First Bank, who are expected to provide crucial testimony when the case resumes on May 8, 2025.
Former First Bank Relationship Manager Accuses Otudeko of Financial Misconduct
Otudeko’s financial controversies deepened further when, in August 2024, Adesuwa Ezenwa, a former relationship manager at First Bank, filed a lawsuit against him, alleging financial misconduct and wrongful dismissal.
According to Ezenwa, she was unfairly dismissed in 2016 after processing N12 billion ($7.6 million) in loans that were diverted to Otudeko-linked firms, namely:
•V-Tech Ltd
•Ontario Oil and Gas
These funds were initially intended for Stallion Group, but instead, they were allegedly rerouted to companies linked to Otudeko. Ezenwa claims she had no direct control over loan approvals and was wrongfully blamed for the scandal.
As part of her lawsuit, she is seeking:
•N500 million ($320,000) in damages
•N25 million ($15,600) in legal costs
This case is separate from the EFCC’s criminal charges but further complicates Otudeko’s already mounting financial and legal woes.
Supreme Court Upholds N13.5 Billion Debt Repayment Order
In another setback, the Supreme Court of Nigeria recently upheld rulings ordering Otudeko and his companies to settle an outstanding N13.5 billion ($17.1 million) debt. This case traces back to longstanding financial disputes between Honeywell Group and Ecobank Nigeria, with the latter seeking to recover unpaid obligations.
Otudeko’s financial troubles escalated in 2021, when he was removed as chairman of FBN Holdings after pressure from regulatory authorities. In 2023, Ecobank moved to seize his shares in FBN Holdings, alleging that he was attempting to dodge debt repayment by shifting assets through his investment vehicle, Barbican Capital Limited.
FBN Holdings Share Dispute: A Battle for Control
Otudeko remains locked in a separate battle over his controversial 15.1% stake in FBN Holdings, which was acquired through Barbican Capital Ltd, a firm linked to Honeywell Group.
FBN Holdings and the CBN are actively pushing to dismiss a lawsuit filed by Barbican Capital Ltd, arguing that Otudeko used the company as a front to sidestep his debt obligations. Ecobank has also taken legal action, claiming that his purchase of the shares was an attempt to shield assets from creditors.
This corporate battle has significant implications for control over FBN Holdings, one of Nigeria’s largest financial institutions. If Otudeko loses the legal fight, he could forfeit his multi-billion naira stake in the bank.
What’s Next? A Pivotal Trial for Nigeria’s Business Landscape
With the EFCC preparing 12 witnesses, including financial investigators and banking regulators, Otudeko’s trial is shaping up to be one of the most significant financial crime cases in Nigeria’s recent history.
If convicted, he could face severe financial penalties and possible jail time, potentially reshaping his business empire, which spans multiple industries, including oil and gas, real estate, and manufacturing.
As Nigeria’s financial and regulatory landscape tightens, the outcome of this case could send a strong signal to the business community about corporate governance and accountability. The trial’s next hearing on May 8, 2025, will be critical in determining Otudeko’s fate.
Conclusion: A Billionaire Under Siege
Once one of Nigeria’s most powerful businessmen, Oba Otudeko now finds himself at the center of multiple legal battles. His fraud charges, debt repayment orders, and corporate disputes paint a picture of a man fighting to maintain his business empire and financial legacy.
As his trial unfolds, the outcome could have far-reaching consequences for both Otudeko and Nigeria’s financial sector. With each passing case, his grip on his once-thriving conglomerate appears to be slipping further.
