The Federal High Court in Lagos has struck out the 13-count charge of alleged N30 billion loan fraud filed against Oba Otudeko, former chairman of First Bank of Nigeria (FBN), following a formal withdrawal by the Economic and Financial Crimes Commission (EFCC).
Justice Chukwujekwu Aneke struck out the case on Wednesday after EFCC’s counsel, Rotimi Oyedepo, informed the court that all parties had reached an amicable settlement.
In January, the EFCC had filed charges against Otudeko and three others — Stephen Olabisi Onasanya (former GMD of FBN), Soji Akintayo (former board member of Honeywell Flour Mills Plc), and Anchorage Limited (a company linked to Otudeko) — over a series of loans amounting to N30 billion obtained between 2013 and 2014.
The EFCC alleged the loans — N12.3bn, N5.2bn, N6.2bn, N6.1bn, and N1.5bn — were fraudulently obtained in the name of various companies.
Settlement Reached, Depositors’ Funds Recovered
Oyedepo revealed that following the filing of the charges, the defence team wrote to the Attorney-General of the Federation (AGF), Lateef Fagbemi, seeking an out-of-court settlement. The AGF then convened a meeting with all involved parties.
Subsequently, First Bank — the nominal complainant — formally withdrew its complaint via a letter dated July 16, confirming that the matter had been resolved and depositors’ funds had been fully recovered.
Otudeko’s legal team also wrote to the AGF on the same day affirming the settlement. On July 21, EFCC wrote to the AGF agreeing not to proceed with the charges.
Oyedepo told the court that, with funds fully recovered and to avoid abuse of court processes, the AGF approved the withdrawal of the charges.
Counsel to the defendants confirmed the resolution, with Otudeko’s lawyer, Bode Olanipekun (SAN), stating that all disputed funds had been repaid. Lawyers for the second and third defendants aligned with this position.
Following the submissions, Justice Aneke struck out the charges.
Otudeko Sells Off First HoldCo Stake
In a related development, Otudeko last week offloaded his stake in FBN Holdings (First HoldCo), two years after acquiring it. The shares, accounting for about 25% of the company’s total outstanding stock, were sold in 17 negotiated deals at a fixed price of N31 per share.