EFCC to Arraign Oba Otudeko and Former Bank MD Over N12.3bn Fraud
The Economic and Financial Crimes Commission (EFCC) is set to arraign prominent businessman Chief Oba Otudeko, the former Managing Director of First Bank, Stephen Onasanya, and others for their alleged roles in defrauding First Bank of Nigeria to the tune of N12.3 billion. The arraignment is scheduled for January 20, 2025, at the Federal High Court in Lagos.
Otudeko, a former Chairman of First Bank Nigeria Holdings, Onasanya, former board member Soji Akintayo, and the company Anchorage Leisure Limited are all named in the case. The charges, filed by EFCC prosecutor Mrs. Bilikisu Buhari, accuse the defendants of engaging in fraudulent activities between 2013 and 2014, with specific amounts of N5.2bn, N6.2bn, N6.15bn, N1.5bn, and N500m being illegally obtained from the bank.
The charges include multiple counts of conspiracy, fraud, and the uttering of forged documents to deceive the bank into releasing funds under false pretenses. The EFCC alleges that the defendants falsely represented credit facilities for companies such as Tech Dynamic Links Limited and Stallion Nigeria Limited, knowing the claims were fraudulent.
In the 13 charges, the EFCC further accuses the defendants of conspiring to convert illicit funds to the benefit of Honeywell Flour Mills, another company associated with Otudeko. Some of the funds, including N1.5bn and N500m, were allegedly laundered through Honeywell Flour Mills, violating several sections of Nigeria’s Money Laundering (Prohibition) Act.
In addition, the EFCC accuses the group of forging key financial documents, such as “Letters of Application” and “Investment Certificates,” to mislead First Bank into believing they were genuine, further facilitating the fraudulent transactions.
As part of the charges, Otudeko is also accused of failing to disclose his personal interest in a loan facility sought by V-Tech Dynamic Links Limited, despite being the chairman of First Bank. This omission allegedly violated the Banks and Other Financial Institutions Act.
The defendants will face Justice Chukwujekwu Aneke, who is overseeing the case, registered as FHC/L/20C/2025. If convicted, they could face severe penalties under Nigerian law, including imprisonment and heavy fines. The EFCC has vowed to continue its efforts in holding individuals accountable for financial crimes and maintaining the integrity of Nigeria’s banking sector.
