A Federal High Court in Lagos has ordered the arraignment of Oba Otudeko, former chairman of First Bank of Nigeria Plc, and Bisi Onasanya, former managing director of the bank, over an alleged ₦12.3 billion fraud. The court’s decision came on Monday following a ruling by Justice Aneke, who emphasized that the defendants must first enter their pleas before any preliminary objections can be heard.
Justice Aneke cited established legal principles, referencing cases such as Onnoghen v FRN and Bello v FRN, to affirm that arraignment is a prerequisite for addressing any challenges to the validity of the charges. “Any preliminary objection to the validity of a charge can only be heard after the plea is taken; this is now a condition precedent, and this court is bound by the decision,” the judge stated.
After the ruling, Otudeko’s counsel, Wole Olanipekun (SAN), informed the court that parties were exploring a settlement. He revealed that on March 12, counsel for all parties, including the prosecution, had met with the Attorney General of the Federation to discuss a peaceful resolution. Olanipekun urged the court to adjourn the case to allow for further settlement talks.
Other defense counsel, including Kehinde Ogunwumiju (SAN), Yinka Fusika (SAN), and Charles Adeogun-Phillips (SAN), confirmed the ongoing settlement discussions. However, the prosecution counsel, Bilkisu Buhari-Bala, requested that the court adjourn the case for either arraignment or a report on the settlement.
Justice Aneke adjourned the case to May 8 for a report on the settlement talks.
Background of the Case
The Economic and Financial Crimes Commission (EFCC) had filed a 13-count criminal charge against Otudeko, Onasanya, Soji Akintayo (a former member of the board of directors of Honeywell Flour Mills Plc), and Anchorage Leisure Ltd., a company linked to Otudeko. The charges, filed on January 16, 2025, allege that the defendants fraudulently obtained ₦12.3 billion from First Bank in tranches of ₦5.2 billion, ₦6.2 billion, ₦6.150 billion, ₦1.5 billion, and ₦500 million between 2013 and 2014 in Lagos.
The case highlights ongoing efforts by Nigerian authorities to address high-profile financial crimes and hold individuals accountable for alleged misconduct. The outcome of the settlement talks or the arraignment will be closely watched, given the prominence of the defendants and the significant sums involved.
