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Otudeko and Former Bank MD Onasanya Arraigned by EFCC

The Economic and Financial Crimes Commission (EFCC) is set to arraign prominent Nigerian businessman Oba Otudeko, the former Chairman of First Bank of Nigeria Holdings, and Stephen Olabisi Onasanya, the former Managing Director of First Bank, on Monday, January 20, 2025, in connection with an alleged fraud amounting to N12.3 billion.

According to the charges filed at the Federal High Court in Lagos, the duo, alongside Soji Akintayo, a former board member of Honeywell Group, and Anchorage Leisure Limited, a company linked to Otudeko, are accused of orchestrating a series of fraudulent transactions between 2013 and 2014. The charges detail a complex scheme where the defendants allegedly obtained funds under pretenses from First Bank, involving amounts like N5.2 billion, N6.2 billion, N6.15 billion, N1.5 billion, and N500 million.

The EFCC’s 13-count charge includes conspiracy, fraud, forgery, and money laundering accusations. Specific counts allege that the defendants forged documents, including applications and authorizations, to deceive First Bank into disbursing loans to companies like V-Tech Dynamic Links Limited and Stallion Nigeria Limited, which were purportedly fronts for personal financial gain.

One of the key allegations is that on December 11, 2013, the defendants procured Honeywell Flour Mills Plc to retain N1.5 billion, which they knew to be the proceeds of their unlawful activities. Another count accuses Otudeko and Onasanya of procuring the transfer of N6.2 billion to Stallion Nigeria Limited’s account without declaring a personal interest in the transaction, violating banking regulations.

The case has stirred significant public interest, due to the high profile of the individuals involved and the scale of the alleged fraud. Oba Otudeko is a well-known figure in Nigeria’s business landscape, with a history of involvement in major corporations, including his role as Chairman of FBN Holdings.

The EFCC has indicated that several witnesses, including former and current employees of First Bank and representatives from other relevant organizations like the Central Bank of Nigeria, will testify. The commission aims to present evidence through documents and testimonies to substantiate the charges of fraudulent misrepresentation and financial misconduct.

The arraignment will take place before Justice Chukwujekwu Aneke, and the case has been assigned the number FHC/L/20C/2025. The legal proceedings are expected to shed light on the inner workings of high-level financial transactions in Nigeria and could have broader implications for banking regulations and corporate governance in the country.

This development comes amidst a broader crackdown by the EFCC on financial crimes, with several high-profile cases emerging recently. These cases highlight the government’s commitment to tackling corruption and ensuring accountability in the financial sector.

As Nigeria continues to grapple with economic challenges, including inflation and currency fluctuations, the outcome of this case could influence public trust in major financial institutions and the broader economic policy landscape.

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