The Federal High Court, Lagos, on Wednesday, struck out N12.3 billion fraud charges instituted against the Chairman of Honeywell Group, Chief Oba Otudeko, a former Managing Director of First Bank, Olabisi Onasanya and others by the Economic and Financial Crimes Commission (EFCC), following discontinuance by the Commission.

Justice Chukwujekwu Aneke struck out the charge after EFCC informed the court that parties had achieved full settlement in the case and that the Office of the Attorney-General of the Federation had approved its discontinuance.

Naijaonpoint previously reported on March 17, 2025, that parties in the case confirmed they were discussing “settlement”.

Otudeko’s counsel, Chief Wole Olanipekun (SAN), had informed Justice Chukwujekwu Aneke previously that “parties were exploring a settlement” in the case filed.

Naijaonpoint previously reported that the EFCC’s suit is against Otudeko, Onasanya, a former board member of Honeywell Flour Mills Plc, Soji Akintayo, and a company allegedly linked to Otudeko, Anchorage Leisure Ltd, in the case marked FHC/L/20C/2025.

The EFCC had accused the defendants, in a 13-count criminal charge, of fraudulently obtaining N12.3 billion from First Bank through various transactions between 2013 and 2014.

According to the charges previously reported by Naijaonpoint, the defendants allegedly secured N6.2 billion in credit facilities from First Bank Limited under the pretext of loans applied for and disbursed to Stallion Nigeria Limited.

The EFCC argued that the representations made by the defendants were false and contravened Section 8(a) of the Advance Fee Fraud and Other Fraud Related Offences Act 2006, punishable under Section 1(3) of the same Act.

Additionally, the EFCC alleged that Otudeko, while serving as Chairman of First Bank, had a personal interest in a N6.15bn loan facility sought by V-Tech Dynamics Links Limited.

The Commission alleged the interest was reportedly undeclared to the bank, constituting a violation of Section 18(1) of the Banks and Other Financial Institutions Act 2004, punishable under Section 18(2) of the same Act.

On February 13, 2025, Otudeko failed to appear in court for arraignment.

The defence counsel argued that the court should first determine their preliminary objections before arraignment, and the court fixed the date for ruling.

Delivering a ruling, Justice Aneke had disagreed with the defence team, holding that “it was a settled legal principle that a defendant’s plea must be taken before any preliminary objection can be heard.”

After the ruling, Olanipekun informed “the court that settlement discussions were ongoing under the Attorney General’s supervision.”

He seized the moment to call for an adjournment for a report on the settlement.

Other defence counsel, including Messrs Kehinde Ogunwumiju (SAN), Olumide Fusika (SAN), and Charles Adeosun-Phillips (SAN), had aligned with the submission of Olanipekun.

During the court session on Wednesday, Counsel to Otudeko, Bode Olanipekun (SAN), informed the court that all outstanding issues between his client and the nominal complainant (First Bank) had been resolved.

EFCC counsel, Mr Rotimi Oyedepo (SAN), confirmed the position to the court.

He added that there had been settlement of the issues.

Justice Aneke, consequently, held that the charge by the EFCC is hereby struck out.