Lagos Court Orders Oba Otudeko to Appear in ₦30 Billion Loan Fraud Trial

A Lagos State High Court has mandated prominent businessman Oba Otudeko to appear in court for his trial concerning an alleged ₦30 billion loan fraud. The Economic and Financial Crimes Commission (EFCC) has filed a 13-count charge against Otudeko and three others in connection with this case.

The charges stem from allegations that Otudeko and his co-defendants fraudulently obtained a ₦30 billion loan from a financial institution. The EFCC asserts that the loan was secured under false pretenses and that the funds were misappropriated. Specific details of the alleged fraudulent activities have not been disclosed publicly.​

Otudeko, a notable figure in Nigeria’s business community, holds significant positions across various sectors, including banking, telecommunications, and real estate. His involvement in this legal matter has attracted considerable public and media attention.​

The court’s order for Otudeko to appear underscores the seriousness of the allegations and the judiciary’s commitment to addressing financial crimes. The trial is anticipated to shed light on the specifics of the case and determine the culpability of the accused parties.​

As the legal proceedings unfold, the business community and the public at large are closely monitoring developments, given the potential implications for corporate governance and financial integrity in Nigeria.​

Oba Otudeko’s Role at First Bank and His Controversial Exit

Oba Otudeko has long been a key figure in the country’s corporate landscape. His leadership and investments span multiple industries, including banking, telecommunications, and consumer goods. However, his tenure as Chairman of First Bank of Nigeria (FBN) and his eventual exit in 2021 were marked by intense regulatory scrutiny and boardroom conflicts.

Otudeko’s Tenure at First Bank

Oba Otudeko served as Chairman of First Bank Holdings Plc, the parent company of Nigeria’s oldest and most prestigious financial institution, First Bank of Nigeria. Under his leadership, the bank pursued an ambitious expansion strategy.

His tenure was marked by controversy. One of the key challenges was First Bank’s handling of corporate governance issues, particularly regarding loans extended to companies linked to him, such as Honeywell Flour Mills. The bank was found to have significant exposure to these entities, leading to concerns over conflicts of interest.

Regulatory Intervention and Boardroom Power Struggle

In April 2021, the Central Bank of Nigeria (CBN) took an unprecedented step by removing the entire board of First Bank, including Otudeko as chairman. This intervention was triggered by governance concerns and the bank’s decision to remove its managing director, Dr. Adesola Adeduntan, without prior regulatory approval. The CBN swiftly reinstated Adeduntan, citing the need to safeguard financial stability.

The regulator also pointed to First Bank’s non-performing loans, particularly its exposure to Honeywell Flour Mills, which was required to settle its obligations in full before further credit could be extended. Otudeko, being a key stakeholder in Honeywell, was at the center of this dispute. The CBN accused him of exerting undue influence over First Bank’s decision-making, raising concerns about insider dealings and risk management.

Exit from First Bank and Legal Battles

Following his removal as chairman, Otudeko’s financial dealings continued to draw scrutiny. In mid-2023, he made headlines again when an investment firm linked to him, Barbican Capital, attempted to acquire a major stake in First Bank Holdings. The transaction sparked regulatory concerns, given Otudeko’s past boardroom battles and governance issues. The move was seen as an attempt to regain influence over the bank, but it was met with strong opposition from other key shareholders.

His legal troubles deepened when the Economic and Financial Crimes Commission (EFCC) initiated an investigation into a ₦30 billion loan fraud involving his businesses. According to reports, the funds were allegedly obtained under false pretenses and misappropriated, prompting a Lagos High Court to issue an order compelling Otudeko to appear in court.

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