Otudeko, Onasanya, Others Seek Out-of-Court Settlement in Alleged Fraud Case

Lawyers representing businessman Chief Oba Otudeko and former Managing Director of First Bank of Nigeria, Olabisi Onasanya, informed a Federal High Court in Lagos on Monday that they were in discussions to settle the fraud case brought against them by the Economic and Financial Crimes Commission (EFCC) out of court.

The legal team, consisting of prominent senior advocates such as Chief Wole Olanipekun (SAN), Mr. Olumide Fusika (SAN), Mr. Kehinde Ogunwumiju (SAN), and Dr. Charles Adeogun-Philips (SAN), requested that trial judge, Justice Chukwujekwu Aneke, adjourn the case to allow time for the parties to complete their negotiations.

The EFCC has accused Otudeko, former Chairman of First Bank of Nigeria Holdings; Onasanya; former Honeywell Group board member Soji Akintayo; and the company Anchorage Leisure Limited, which is allegedly connected to Otudeko, of fraudulently obtaining funds from the bank.

The anti-graft agency claims the defendants were involved in fraudulent transactions totaling N5.2 billion, N6.2 billion, N6.15 billion, N1.5 billion, and N500 million between 2013 and 2014 in Lagos. Additionally, the EFCC alleges the defendants used forged documents to deceive the bank.

Despite the charges, the defendants have yet to enter their pleas as Otudeko has not appeared in court since the proceedings began. His lawyer stated that Otudeko is currently abroad for health reasons.

At the hearing on Monday, Justice Aneke dismissed various applications challenging the court’s jurisdiction to hear the case. He stated that Section 396(2) of the Administration of Criminal Justice Act (ACJA) required the defendants to be arraigned before any jurisdictional challenges could be addressed. He also cited legal precedents, including the Court of Appeal’s ruling in the case of Yahaya Bello and EFCC, which stated that preliminary objections could not be heard before arraignment.

Following the ruling, Chief Olanipekun informed the court that, on March 12, 2025, counsel for all parties met with the Attorney General of the Federation (AGF) to explore an out-of-court settlement. He reported that substantial progress had been made, and that the AGF had directed the parties to refrain from any actions that could hinder the resolution process, including filing additional applications.

Olanipekun revealed that the next meeting for settlement talks is scheduled for April 9, 2025, at the AGF’s office in Abuja. He requested the court to adjourn the case until then, to report on the progress of the settlement discussions.

EFCC prosecutor Mrs. Bilikisu Buhari-Bala opposed the request for an adjournment, insisting that the defendants should be arraigned at the next hearing, in addition to reporting on the settlement progress.

In response, Olanipekun reiterated that the AGF was actively mediating the settlement process.

After hearing from both sides, Justice Aneke granted the adjournment request and set the next hearing for May 8, 2025, to review the progress of the settlement talks.