Nigeria’s financial sector faces another major scandal as the Economic and Financial Crimes Commission (EFCC) launches criminal proceedings against prominent business leader Oba Otudeko and former FirstBank Managing Director Olabisi Onasanya over an alleged N12.3 billion fraud scheme. The case, filed on January 16, 2025, marks a significant development in the country’s ongoing fight against financial crimes.
The anti-graft agency has prepared a 13-count criminal charge against the suspects, who are scheduled to appear before Justice Chukwuejekwu Aneke of the Federal High Court, Lagos, on January 20th. The case also implicates Soji Akintayo, a former board member of Honeywell Flour Mills Plc, and Anchorage Leisure Ltd, a company allegedly connected to Otudeko.
According to court documents filed by EFCC prosecutor Bilkisu Buhari-Bala, the defendants allegedly orchestrated a sophisticated scheme to fraudulently obtain funds from FirstBank through multiple transactions between 2013 and 2014. The fraudulent activities reportedly involved several substantial transactions, including sums of N5.2 billion, N6.2 billion, N6.15 billion, N1.5 billion, and N500 million.
The prosecution alleges that the defendants obtained these funds under false pretenses, claiming they were credit facilities for V-Tech Dynamic Links Limited and Stallion Nigeria Limited. The EFCC contends that these representations were knowingly false, violating Section 8(a) of the Advance Fee Fraud and Other Fraud Related Offences Act 2006.
To strengthen its case, the EFCC has assembled an extensive witness list including FirstBank representatives Cecelia Majekodunmi, Ola Michael Aderogba, Abiodun Olatunji, Raymond Eze, Abiodun Odunbola, and Adeeyo David. These witnesses are expected to provide crucial testimony regarding the defendants’ alleged fraudulent misrepresentations and present supporting documentation.
The prosecution’s strategy also includes calling upon representatives from the Central Bank of Nigeria, Stallion Nigeria Limited, and V-tech Dynamics Ltd to testify. Additional witnesses Farida Abubakar and Adaeze Nwakoby are also listed to provide evidence in the case.
The charges detail complex financial maneuvers, including allegations of money laundering. One significant charge accuses the defendants of conspiring to use N6.15 billion, which they allegedly knew was obtained through false pretenses. Another charge focuses on the alleged procurement of Honeywell Flour Mills Plc to retain N1.5 billion, which prosecutors claim was derived from unlawful activities.
This case represents one of the most high-profile financial crime prosecutions in recent years, targeting prominent figures in Nigeria’s business and banking sectors. Otudeko, as Chairman of the Honeywell Group, and Onasanya, former head of one of Nigeria’s largest banks, are well-known figures in the country’s financial landscape.
The case highlights the EFCC’s continued efforts to combat financial crimes within Nigeria’s corporate sector, particularly focusing on alleged collusion between bank executives and business leaders. The prosecution’s extensive preparation, including the assembly of witnesses from various financial institutions and regulatory bodies, suggests a thorough investigation preceding the charges.
The implications of this case extend beyond the individuals involved, potentially affecting public confidence in Nigeria’s banking sector and corporate governance standards. As the trial approaches, the financial community and public alike will be watching closely, as its outcome could set important precedents for future financial crime prosecutions in Nigeria.
This development comes at a crucial time when Nigeria’s financial sector faces increasing scrutiny over transparency and accountability. The case against these high-profile defendants may serve as a litmus test for the effectiveness of Nigeria’s financial crime laws and the ability of regulatory bodies to enforce them against powerful business interests.
