The federal high court in Lagos has struck out the 13-count charge filed against Oba Otudeko, a former chairman of First Bank of Nigeria (FBN).
On Wednesday, Judge Chukwujekwu Aneke dismissed the charges after Rotimi Oyedepo, counsel to the Economic and Financial Crimes Commission (EFCC), announced the withdrawal of the suit. The charges had been filed in January against Otudeko and three others over an alleged N30 billion loan fraud.
The additional defendants included Stephen Olabisi Onasanya, a former group managing director of FBN; Soji Akintayo, a former board member of Honeywell Flour Mills plc; and Anchorage Limited, a company linked to Otudeko. The EFCC accused them of obtaining several tranches of loans amounting to N12.3 billion, N5.2 billion, N6.2 billion, N6.1 billion, and N1.5 billion from First Bank under the pretense that the funds were secured by various firms. The loans were allegedly obtained between 2013 and 2014.
The trial faced delays primarily due to the absence of Otudeko, leading the defense and the EFCC to explore an out-of-court settlement regarding the loan fraud allegations.
During court proceedings, Oyedepo revealed that after the charges were filed, the Attorney General of the Federation (AGF), Lateef Fagbemi, received a letter from Otudeko’s defense team seeking an “amicable resolution” to the case. Following this, the AGF convened a meeting with all parties involved.
Oyedepo stated that First Bank, the nominal complainant, wrote to the AGF on July 16, withdrawing its complaint on the grounds that the matter had been resolved. Otudeko’s lawyer also confirmed that the issue had been settled. Subsequent letters from the EFCC to the AGF reiterated this, leading to the decision to withdraw the charges to prevent abuse of court processes.
Bode Olanipekun, counsel for Otudeko, confirmed that the alleged loan amount had been fully repaid. Counsel for the other defendants aligned with this confirmation, indicating that the resolution was primarily between the nominal complainant and Otudeko.
As a result of the proceedings, Judge Aneke officially struck out the charges. Additionally, in a significant move last Wednesday, Otudeko sold off his shares in First HoldCo, trading approximately 25 percent of the company’s total outstanding shares at a fixed price of N31 per share, just two years after their acquisition.