News
Ecobank Urges FBN to Decline Otudeko’s Share Acquisition Proposal
Ecobank Urges First Bank to Reject Otudeko’s Share Acquisition Amidst Debt Controversy
Ecobank has called on First Bank Holdings to decline the acquisition of 4.7 billion shares by former Chairman, Dr. Oba Otudeko. The request comes in light of a letter from Ecobank’s Legal Counsel, Kunle Ogunba & Associates, which revealed that Otudeko’s affiliated entities owed the bank N13.5 billion.
The letter, dated July 7 and signed by Oludare Amusan, the Principal Partner of the law firm, stated that Ecobank had initiated several lawsuits against Honey Group Limited, Siloam Global Services Limited, Anchorage Leisures Limited, Honeywell Flour Mills Plc, and Dr. Oba Otudeko at the Federal High Court in Lagos. The legal actions were taken to recover the debts owed by these entities.
According to the letter obtained by The PUNCH, the legal battle between Otudeko and the bank revolves around the outstanding debts owed by the mentioned business entities. The letter emphasized that Otudeko personally guaranteed the loan that resulted in the indebtedness of these companies.
The letter stated, “Despite the Supreme Court’s affirmation of their indebtedness to our client and its order for them to pay all outstanding debts under the loan contract, which was personally guaranteed by Dr. Oba Otudeko, the said debt amounts to N13,507,052,417.99.”
The bank, through its legal representatives, alleged that instead of taking immediate steps to repay their debts as directed by the Supreme Court, Otudeko had reportedly used a company called Barbican Capital Limited as a special purpose vehicle to divert his assets and funds. The letter further revealed that Otudeko had allegedly purchased 4,770,269,843 shares of FBN Holdings Plc through Barbican Capital Limited, spread across 19 business entities and held by 10 different companies.
Based on these facts, the law firm argued that Otudeko’s actions were aimed at diverting assets belonging to him and the Honeywell Group of Companies, with the intention of frustrating the enforcement of the Supreme Court’s judgment and evading the repayment of their undisputed indebtedness to Ecobank.
The letter demanded that FBN Holdings refrain from approving or registering the shares acquired by Barbican Capital Limited, as proceeding with such actions would assist in the diversion of funds meant for debt repayment—a clear violation of the Supreme Court’s judgment that determined the outstanding indebtedness between the Honeywell Group and Ecobank.
Additionally, the letter requested detailed information about the transaction within seven days, emphasizing that as a responsible corporate entity, FBN Holdings should not take any action that encourages the violation of a Supreme Court ruling.
This appeal from Ecobank follows an earlier report that Oba Otudeko’s Honeywell Group had acquired a significant number of shares in First Bank of Nigeria Holdings Plc through a cross deal worth N87.8 billion. The acquisition raised concerns about the validity of the trades, as no single shareholder had previously owned such a large volume of First Bank shares.
The attempt by Otudeko to regain control of the bank sparked discussions among shareholders who were apprehensive about the implications of his return, especially after his previous ousting by the Central Bank in 2021.
Investigations by Nigerian Concord Newspaper reveal that the Executive Secretary of the Nigerian Shippers Council, Mr. Pius Akutah, has allegedly misappropriated public funds for a lavish lifestyle.
According to our findings, within months of assuming office, Akutah allegedly purchased a bulletproof SUV valued at approximately N850 million. In addition, he is reported to have acquired over twenty exotic SUVs for use as a convoy.
Akutah is also said to have acquired multiple high-value properties, including three in Abuja’s Maitama and Asokoro districts worth over N2 billion, and two in Lagos’ Banana Island valued at N1.8 billion. These acquisitions appear far beyond the scope of his official salary and allowances.
Further investigation suggests that Akutah may be using public funds to support political ambitions, including allegedly grooming militants across 23 local government areas in Benue State for a potential 2027 gubernatorial bid.
Staff of the Shippers Council reportedly claim that Akutah frequently accesses the council’s treasury without proper authorization. Some insiders have indicated that a petition will soon be filed with the EFCC, ICPC, and the Presidency to report his alleged misconduct.
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Investigations by Nigerian Concord Newspaper reveal that the Executive Secretary of the Nigerian Shippers Council, Mr. Pius Akutah, has allegedly misappropriated public funds for a lavish lifestyle.
According to our findings, within months of assuming office, Akutah allegedly purchased a bulletproof SUV valued at approximately N850 million. In addition, he is reported to have acquired over twenty exotic SUVs for use as a convoy.
Akutah is also said to have acquired multiple high-value properties, including three in Abuja’s Maitama and Asokoro districts worth over N2 billion, and two in Lagos’ Banana Island valued at N1.8 billion. These acquisitions appear far beyond the scope of his official salary and allowances.
Further investigation suggests that Akutah may be using public funds to support political ambitions, including allegedly grooming militants across 23 local government areas in Benue State for a potential 2027 gubernatorial bid.
Staff of the Shippers Council reportedly claim that Akutah frequently accesses the council’s treasury without proper authorization. Some insiders have indicated that a petition will soon be filed with the EFCC, ICPC, and the Presidency to report his alleged misconduct.
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I am writing to felicitate with Your Excellency, Atku Abubakar, GCON, former Vice-President of Nigeria (Zege Mule u Tiv & Wazirin Adamawa)
on the occasion of your 79th birthday anniversary.
I join your teeming admirers globally in celebrating you on this special day, an adorable Statesman and my Boss.
I recall with nostalgia, how countless generations have benefited from your generosity, wealth of experience and benevolence including being my key benefactor even as a young lawyer for my professional success.
Your Excellency, may your special day be filled with grandeur befitting your illustrious career.
I wish you continued success, prosperity, and an unending stream of accolades.
It takes a remarkable kind of fortitude to remain active in public life well into one’s golden years. Your dedication and patriotism remain truly exceptional.
May you enjoy a day of reflection on your many years of fruitful service to humanity. It is my prayer that God Almighty grants you many more healthy, fruitful, and fulfilling years ahead, and continues to endow you with wisdom, strength, and the grace to keep contributing to our nation-building.
Happy Birthday, Your Excellency.
Michael Kaase Aondoakaa SAN.
Former Attorney General of the Federation and Minister of Justice
TAU reaffirms commitment to globally competitive learning
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