Alleged N12.3bn Fraud: EFCC Arraigns Otudeko, Onasanya On Monday

Justice Chukwujekwu Aneke of the Federal High Court in Lagos has fixed January 20 for the arraignment of businessman Chief Oba Otudeko and a former Managing Director of First Bank, Olabisi Onasanya, over allegations of N12.3 billion fraud.

Justice Aneke fixed the date following a 13-count charge of conspiracy, fraud and forgery filed against them by the Economic and Financial Crimes Commission (EFCC).

The EFCC is accusing Otudeko, a former Chairman of First Bank of Nigeria Holdings, Onasanya, a former board member of Honeywell Group, Soji Akintayo, and a company, Anchorage Leisure Limited, which is allegedly connected to Otudeko.

The anti-graft agency, in the charge filed by one of its prosecutors, Bilikisu Buhari, claimed that the defendants committed fraud in multiple transactions totalling N5.2 billion, N6.2 billion, N6.15 billion, N1.5 billion, and N500 million between 2013 and 2014 in Lagos.

In the charge marked FHC/L/20C/2025 and dated January 16, 2025, the Commission also alleged that the defendants created and used forged documents to deceive the bank.

In count one, the EFCC accuses the defendants of conspiring “to obtain the sum of N12.3 billion from First Bank Limited on the pretence that the said sum represented credit facilities applied for by V-Tech Dynamic Links Limited and Stallion Nigeria Limited, which representation you knew to be false.

In count 2, the anti-graft agency alleges that the defendants, on or about November 26, 2013, in Lagos, “obtained the sum of N5.2 billion from First Bank Limited on the pretence that the said sum represented credit facilities applied for by V-Tech Dynamic Links Limited, which representation you knew to be false.”

The third count claims that, between 2013 and 2014 in Lagos, the defendants obtained N6.2 billion from First Bank Limited, falsely representing that the sum was for credit facilities disbursed to Stallion Nigeria Limited.

In the fourth count, they are accused of conspiring to spend N6.15 billion out of the fraudulent proceeds.

The EFCC maintained that the alleged offences violate Section 8(a) of the Advance Fee Fraud and Other Fraud Related Offences Act of 2006 and are punishable under Section 1(3).

Counts 5 and 6 states: “That you, Chief Oba Otudeko, Stephen Olabisi Onasanya, Soji Akintayo, and Anchorage Leisure Limited, on or about December 11, 2013, in Lagos, procured Honeywell Flour Mills Plc to retain the sum of N1.5 billion, which you reasonably ought to have known was part of the proceeds of your unlawful activities, specifically obtaining by pretences, thereby committing an offence contrary to Section 18(c) and Section 15(2)(d) of the Money Laundering (Prohibition) Act of 2011 (as amended), and punishable under Section 15(3) of the same Act.”

Further accusations include that on or about December 17, 2013, in Lagos, the defendants converted N500 million naira to the use of Honeywell Flour Mills Plc, knowing it to be part of the proceeds of their unlawful activities. This constitutes an offence under Section 15(2) (b) of the Money Laundering (Prohibition) Act, 2011 (as amended), and is punishable under Section 15(3) of the same Act.

The EFCC plans to call several First Bank witnesses, including Cecelia Majekodunmi, Ola Michael Aderogba, Abiodun Olatunji, Raymond Eze, Abiodun Odunbola, and Adeeyo David, to prove the charges against the defendants.

These witnesses are expected to provide evidence regarding the fraudulent misrepresentation by the defendants and will present relevant documents.

The EFCC will also rely on testimonies from representatives of the Central Bank of Nigeria, Stallion Nigeria Limited, and V-Tech Dynamics Ltd.

In addition, the EFCC’s list of witnesses includes Farida Abubakar and Adaeze Nwakoby.