LEGAL PROCEEDINGS surrounding the alleged ₦12.3 billion fraud involving former First Bank of Nigeria Plc chairman, Oba Otudeko, and ex-Managing Director, Bisi Onasanya, have taken a decisive turn, as a Federal High Court in Lagos has ruled that their plea must be taken before any preliminary objections can be entertained.
Justice Chukwujekwu Aneke, presiding over the case, upheld the principle that no preliminary objections can be heard until defendants formally take their plea. Relying on established legal precedents, including Onnoghen v FRN and Bello v FRN, the court reinforced the necessity of arraignment before any challenge to the charge can be considered.
“The issue before the court is whether the processes can be taken before the arraignment of the defendants. 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. I agree with learned counsel for the prosecution—no preliminary objection can be taken without the arraignment of the defendants. This is my view,” Justice Aneke stated.
Following the ruling, lead defence counsel Wole Olanipekun (SAN) informed the court that parties were exploring an out-of-court settlement. He disclosed that a meeting had been held with the Attorney General of the Federation on March 12, where discussions on a peaceful resolution were initiated.
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The prosecution, represented by Bilkisu Buhari-Bala, did not oppose the talks but insisted that the case be adjourned for either a settlement update or arraignment. The court subsequently adjourned the case to May 8 for further proceedings.
The Explainer gathered that the case stems from a 13-count charge filed by the Economic and Financial Crimes Commission (EFCC) against Otudeko, Onasanya, a former board member of Honeywell Flour Mills Plc, Soji Akintayo, and Anchorage Leisure Ltd—a company linked to Otudeko. The charges allege that the defendants obtained ₦12.3 billion from First Bank in a series of transactions between 2013 and 2014.
The EFCC claims that the alleged fraud occurred through multiple tranches, including: ₦5.2 billion, ₦6.2 billion, ₦6.15 billion, ₦1.5 billion, ₦500 million
These funds were allegedly obtained under false pretences, raising concerns about financial misconduct at the highest levels of banking and corporate governance.
The Explainer learned that this case has reignited discussions about accountability in Nigeria’s banking sector, particularly concerning high-profile financial transactions.
According to the Nigeria Inter-Bank Settlement System’s (NIBSS) 2023 Annual Fraud Landscape report, financial institutions in Nigeria lost ₦17.6 billion ($11.2 million) to fraud in 2023. The report indicates that the amount lost to fraud has increased every year over the past five years, with significant growth between each year. The total amount lost to fraud escalated from ₦2.96 billion ($1.8 million) in 2019 to ₦17.6 billion in 2023, marking a 496% increase over the five-year period.
The First Bank case is seen as a litmus test for Nigeria’s financial regulatory framework, involving one of the country’s most prominent banking figures.
