Alleged N12.3b fraud: Otudeko, others opt for out-of-court settlement

A federal High Court sitting in Lagos State, yesterday, dismissed an application challenging court’s justification filed the former Chairman of First Bank of Nigeria Plc., Oba Otudeko and its former Managing Director, Bisi Oresanya, over an alleged N12.3 billion fraud.

The Economic and Financial Crimes Commission (EFCC) had filed a 13-count charge against Otudeko, Onasanya, former Honeywell board member, Soji Akintayo, and Anchorage Leisure Limited.

Justice Chukwujekwu Aneke, who said that no preliminary objection could be taken without the arraignment of the defendants, held that it is a settled principle of law under Section 396 (2) of the Administration of Criminal Justice Act (ACJA) that the plea of a defendant must first be taken before any other application.

The judge cited legal precedents, including the Court of Appeal’s decision in the Yahaya Bello vs EFCC case. Earlier at the resumed proceeding, Bilikisu Buhari announced appearance for the prosecution, while Wole Olanipekun (SAN), Olumide Fusika (SAN), Kehinde Ogunwumiju (SAN) and Dr Charles Adeogun-Philips (SAN) represented the four defendants.

Also, Babajide Koku (SAN) told the court that he was holding a brief for the bank as the nominal complainant. However, Olanipekun told 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 said that the AGF directed all parties to refrain from actions that could jeopardise the resolution process. He also said that the next meeting with the AGF has been scheduled for April 9, 2025, at the AGF’s office in Abuja, imploring the court to adjourn the case for a settlement report.

But Buhari opposed the adjournment solely for a settlement report, insisting that the next hearing should also include the defendants’ arraignment. In response, Olanipekun reaffirmed that the AGF was actively mediating the settlement. The judge subsequently adjourned to May 8, 2025, for a report on settlement.