Court Drops N12.3 Billion Fraud Charges Against Chief Oba Otudeko After Settlement.
A major fraud case involving Chief Oba Otudeko, the Chairman of Honeywell Group, and others, has been dismissed by the Federal High Court in Lagos. The case, which involved charges of N12.3 billion in fraud, was dropped after the Economic and Financial Crimes Commission (EFCC) decided to discontinue the lawsuit.
Justice Chukwujekwu Aneke struck out the charges after the EFCC informed the court that all parties involved had reached a full settlement. Crucially, the Office of the Attorney-General of the Federation had given its approval for the EFCC to stop the prosecution.
Reports from earlier this year, specifically March 17, 2025, had indicated that the parties involved were already discussing a “settlement.” Chief Wole Olanipekun (SAN), Otudeko’s lawyer, had previously told the court about these ongoing discussions.
The Accusations
The EFCC’s lawsuit targeted Otudeko, along with Olabisi Onasanya (a former Managing Director of First Bank), Soji Akintayo (a former board member of Honeywell Flour Mills Plc), and a company called Anchorage Leisure Ltd, which was linked to Otudeko.
The EFCC had filed a 13-count criminal charge, accusing them of fraudulently obtaining N12.3 billion from First Bank between 2013 and 2014.
Specifically, the EFCC alleged that they secured N6.2 billion in loans from First Bank for another company, Stallion Nigeria Limited, based on false statements. The EFCC claimed these actions violated Nigeria’s fraud laws.
Additionally, the EFCC accused Otudeko of having a personal interest in a N6.15 billion loan sought by V-Tech Dynamics Links Limited while he was the Chairman of First Bank. They alleged he did not declare this personal interest to the bank, which is a violation of banking laws.
Court Proceedings and Settlement
Earlier in the case, on February 13, 2025, Otudeko did not appear in court for his initial plea. His lawyers had argued that some legal objections should be decided before he entered a plea. However, Justice Aneke disagreed, stating that a defendant’s plea must be taken first.
Following that ruling, Otudeko’s lawyer, Chief Olanipekun, informed the court that settlement talks were underway under the supervision of the Attorney-General. He requested an adjournment to report on the settlement. Lawyers for the other defendants also supported this request.
What Happened in Court on Wednesday
During the court session on Wednesday, Otudeko’s counsel, Bode Olanipekun (SAN), confirmed to the court that all disagreements between his client and First Bank had been resolved. He noted that this development had been communicated to the EFCC.
EFCC counsel, Mr. Rotimi Oyedepo (SAN), confirmed this settlement to the court. He then referred to Section 180 of the Administration of Criminal Justice Act 2015, explaining that for the sake of justice, public policy, and to prevent wasting the court’s time, the Attorney-General had decided to discontinue the case.
With all defense lawyers confirming this agreement, Justice Aneke officially struck out the charges filed by the EFCC.
This means the criminal proceedings against Chief Oba Otudeko and the other defendants in this particular N12.3 billion fraud case have now ended.
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