Alleged N12.3B Fraud: Court adjourns EFCC’s case against Otudeko, ex-First Bank MD, others

A Federal High Court sitting in Lagos on Thursday adjourned proceedings in the N12.3 billion fraud case involving a former First Bank Chairman, Oba Otudeko, and three others to 17 March.

The court will deliver a ruling on applications and preliminary objections challenging its jurisdiction before proceeding with the arraignment of the defendants.

The case, with suit number FHC/L/CS/962/23, brought by the Economic and Financial Crimes Commission (EFCC), alleges that Mr Otudeko, Managing Director Olabisi Onasanya, former Honeywell Flour Mills board member Soji Akintayo, and Anchorage Leisure Limited defrauded First Bank and depositors through a series of transactions.

At Thursday’s hearing, with PREMIUM TIMES in attendance, Mr Otudeko and Anchorage Leisure Limited were absent, while Messrs Onasanya and Mr Akintayo were present for the scheduled arraignment.

Justice Chukwujekwu Aneke of the Federal High Court, Ikoyi, Lagos, presiding over the matter, heard arguments from both the prosecution and defence teams before setting a new date for the ruling.

Proceedings: Legal arguments

Mr Otudeko’s lead counsel, Wole Olanipekun, Senior Advocate of Nigeria (SAN), informed the court that his 82-year-old client had travelled lawfully to the United Kingdom for medical treatment on 16 January 2025, and arrived at Heathrow Airport the next day.

The counsel dismissed speculation that the 1st defendant (Otudeko) “had absconded,” stating that the trip “was legitimate and backed by official records.”

Mr Olanipekun also argued that the facts of the case “were civil, not criminal,” and urged the court to determine Mr Otudeko’s preliminary objection before proceeding with his arraignment.

The lawyer maintained that the matter had been amicably settled between the parties, with First Bank allegedly assuring that it would not pursue legal action.

Representing the 3rd defendant (Akintayo), Kehinde Ogunwumiju (SAN) filed an application on 10 February 2025, urging the court to quash counts 1 to 10 due to “an abuse of judicial process and lack of prima facie evidence.”

Similarly, Ade Adedeji (SAN) for the 4th defendant (Anchorage Leisure) argued that the charges were malicious and an abuse of court process.

Although the 2nd defendant (Onasanya) did not challenge the charges, his lead counsel, Olasupo Shasore (SAN), asked the court to rule on the other defendants’ applications before proceeding with any trial.

EFCC’s response, court ruling

EFCC Nigeria

In response, EFCC’s lead prosecutor, Rotimi Oyedepo (SAN), urged the court “to dismiss attempts to delay the trial,” citing provisions of the Administration of Criminal Justice Act (ACJA) 2015, “which discourages delaying criminal proceedings.”

The anti-graft agency lawyer stressed that the prosecution had served the defendants by substituted means as directed by the court and insisted that Mr Otudeko “must appear in person to face the charges.”

The SAN further stated that nothing before the EFCC warranted discontinuing the case, asserting that the court had full jurisdiction to hear and determine the matter.

Following submissions from both sides, Justice Aneke adjourned the case to 17 March, stating that “the court would rule on its jurisdiction before any arraignment.”

He also expressed hope that Mr Otudeko would be present at the next hearing in the “interest of justice.”

Background

In January, the EFCC filed a 13-count charge against Mr Otudeko, Mr Onasanya, Mr Akintayo, and Anchorage Leisure Limited.

This newspaper reported that the anti-graft agency alleged that the defendants falsely presented the loans as credit facilities for V-Tech Dynamic Links Limited and Stallion Nigeria Limited.

The EFCC alleged that they conspired to secure these funds under false pretences and later laundered part of the money through Honeywell Flour Mills Plc., adding that loans were allegedly disbursed in multiple tranches.

READ ALSO: Alleged N12 billion Fraud: EFCC demands Otudeko&s physical presence in court

The charges include conspiracy, obtaining money by false pretences, and money laundering. One count accuses the defendants of fraudulently securing N5.2 billion from First Bank in November 2013, claiming it was a loan for V-Tech Dynamic Links Limited. Another count alleges they obtained N6.2 billion in 2014 under the false pretext that it was for Stallion Nigeria Limited. The EFCC also alleged they knowingly used N6.15 billion from fraudulent activities, violating the Money Laundering (Prohibition) Act.

EFCC says the charges against the defendants violate Section 8(a) of the Advance Fee Fraud and Other Fraud Related Offences Act 2006 and Section 15(2)(d) of the Money Laundering (Prohibition) Act 2011, both of which carry severe penalties.