NEWS
Ex-FBN Manager Exposes How Loans Were Diverted To Companies Linked To Otudeko
A former relationship manager at First Bank of Nigeria (FBN) has alleged that billions of naira in loans were funneled to companies linked to Oba Otudeko, the bank’s former chairman, despite the funds being officially approved for different firms.
Adesuwa Ezenwa, who is currently challenging her dismissal at the National Industrial Court (NIC) in Lagos, claims she was unfairly terminated by FBN in October 2016.
According to court documents, Ezenwa was dismissed over alleged fraudulent loan disbursements, but she maintains that no evidence was provided to implicate her.
Read Also: Dangote Refinery vs NNPCL: Unfortunately, Nigeria needs both companies to thrive
Ezenwa’s case centers on loans granted to Supply and Services Ltd, a subsidiary of Royal Ceramics Group, a major FBN client.
She argues that after her dismissal, she was summoned before a disciplinary committee, which ultimately cleared her of personal involvement but criticized her for not raising concerns about transactions approved by her superiors, including her group head and the bank’s Executive Vice President.
Ezenwa insists her dismissal was unjust, alleging that the loans were diverted under the direction of top executives, including Otudeko.
She described the admonition as unfair and unwarranted, arguing that she was in no position to report her superiors.
According to her, some of the loans under review were unsecured and granted to companies in which the bank’s chairman, Chief Oba Otudeko, and the former Managing Director, Mr. Bisi Onasanya, held significant investments.
“The very individuals I would have reported to were the ones responsible for these questionable activities.
“The impugned facilities were approved and disbursed under the direction and authority of her Group head and executive vice president and camouflaged as loans granted by some other unsuspecting customers,” her court statement reads.
In one instance, she alleged that an “unsecured facility” of about N12 billion was granted to a company in which Oba Otudeko holds significant investments.
She claimed that the loan was disguised as being issued to the Stallion Group of Companies, which later discovered this unauthorized entry in its account statement and raised objections.
An unsecured credit facility refers to a loan provided to businesses without requiring collateral.
In another case, she alleged that in 2012, an “unsecured facility” of N2 billion was granted to Broadwaters Resources Company Nigeria Ltd, which she claimed was merely a front used by Majekodunmi and Onasanya to siphon funds from the bank. According to the court documents, the loan was never repaid.
The court document reads, “Out of the N12 billion camouflaged as lending to the Stallion Group, N8.21 Billion was transferred through various accounts to a final destination account belonging to a company known as V TECH LTD which belongs to the Chairman of FBN Holdings, Oba Otudeko while the sum of N4.45 Billion out of the same fictitious facility was transferred to Ontario Oil and Gas. The facility remains unpaid to date.”
“These were not the only acts of malfeasance by the top management of the Bank but several other transactions were undertaken by other top management staff for which the Plaintiff is being punished.
“Apart from funds camouflaged as loans granted to the Stallion Groups, similar loans were granted over the years by Mr. Olatunji (the Branch Manager) and Mrs. Cecilia Majekodumi to other customers of the Bank amongst which are SUPPLIES AND SERVICES LTD. Supplies and Services Ltd is a subsidiary of ROYAL CERAMICS GROUP OF COMPANIES and several loan approvals were initiated and authored by Mr. Olatunji and Mrs. Majekodunmi.
“The facilities granted to Supplies and Services Ltd was subsequently sublent and disbursed in smaller bits to several customers on more profitable terms to both officers and these customers include Swap Technologies and Telecomms Plc, Netconstruct Nigeria Ltd, Orbit Cargo, High Performance Distributions Ltd etc.
“Some of the transactions undertaken by the Bank are already being investigated by the Economic and Financial Crimes Commission (EFCC). Their investigations/Report will be relied on at the trial.”
Ezenwa argued that, given the magnitude of the loans, the bank’s board “had to be complicit in the transactions, as the amounts exceeded the approval limits of the executive directors, vice-president, and managing director of the bank.”
Former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has accused President Bola Tinubu’s administration of being “held hostage by fraudsters” following the controversy surrounding the alleged Presidential Foreign Intervention Promotion Council (PFIPC).
In a statement issued on Thursday by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku said the Presidency’s response to the scandal exposed what he described as a deep institutional crisis within the Federal Government.
ALSO READ: Atiku Appoints Kenneth Okonkwo as 2027 Campaign Spokesperson
According to him, the government’s explanation that a private individual allegedly forged presidential documents, impersonated senior government officials, established an office inside the Federal Secretariat, opened bank accounts using government identities, and engaged foreign diplomats without insider support is difficult to believe.
He argued that rather than clearing the air, the Presidency’s defence had raised even more questions about the integrity of government institutions.
Atiku also questioned reports that about ₦1.3 billion was appropriated for the PFIPC in the 2026 Appropriation Act, despite claims by the Presidency that the agency never officially existed.
The former vice president challenged the government to explain how an allegedly non-existent agency found its way into the national budget, asking which ministries, officials, National Assembly committees, and lawmakers processed and approved the allocation before it was signed into law.
He further criticised the National Assembly for failing to detect the alleged anomaly during the budget process and questioned the role of the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC), accusing anti-graft agencies of selective enforcement.
Atiku maintained that regardless of whether the incident was the work of a sophisticated fraud syndicate or the result of institutional failure, the government must accept responsibility for allowing such a situation to occur.
While acknowledging that the individual at the centre of the controversy may face prosecution, he insisted that the Presidency must also account for the institutional lapses that allegedly enabled the activities.
Calling for an independent investigation, Atiku urged authorities to follow the evidence without political interference, insisting that no individual or institution should be shielded from scrutiny.
He added that the alleged fake agency saga has become another test of accountability and transparency in the Tinubu administration, urging Nigerians to demand answers from those entrusted with managing public institutions.
The Federal Government has announced that the National Youth Service Corps (NYSC) will replace its iconic khaki uniform with locally produced Adire fabric as part of a sweeping reform aimed at repositioning the scheme and promoting indigenous industries.
Minister of Youth Development, Ayodele Olawande, disclosed the development during an appearance on Channels Television’s The Morning Brief on Thursday.
According to the minister, the adoption of Adire is intended to strengthen Nigeria’s textile industry by ensuring government spending supports local manufacturers.
ALSO READ: FG Approves Biggest NYSC Overhaul in 53 Years, Introduces Civilian Leadership, New Uniform
“It’s Adire. Adire is being produced in Nigeria. We have them in Ogun, we have them in Kwara, we have the textile industry. Let’s put our money back into the country,” Olawande said.
The minister also revealed that the ongoing restructuring of the NYSC would see corps members posted based on their academic qualifications and professional backgrounds.
Under the new arrangement, graduates with education-related qualifications will be deployed to schools, while others will be assigned to sectors that align with their areas of study to improve productivity and national development.
Addressing security concerns, Olawande said the Federal Government is considering posting prospective corps members to regions where they studied or are familiar with, particularly in areas facing security challenges.
He noted that the move would reduce concerns among parents and corps members while making deployments more practical.
He further dismissed reports suggesting the military would be removed from the NYSC, describing such claims as a misconception.
According to him, while the scheme’s operational leadership will become civilian-led, the military will continue to play a key role in providing security and supporting the orientation programme.
The reforms follow the Federal Executive Council’s approval of a comprehensive overhaul of the 53-year-old NYSC scheme.
As part of the process, the Attorney-General of the Federation and the Ministry of Youth Development have been directed to amend the NYSC Act and relevant regulations to facilitate the implementation of the reforms.
The Federal Government said the changes are designed to transform the NYSC into a skills-oriented, productivity-driven and youth empowerment institution that supports its vision of building a $1 trillion economy.
Nigeria has secured a fresh $1.25 billion financing package from the World Bank to support ongoing economic reforms, boost private sector investment and create more jobs across the country.
The funding was approved under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme and forms part of the World Bank’s Country Partnership Framework (CPF) for Nigeria, which will run from 2026 to 2032.
According to the World Bank, the financing is designed to help Nigeria remove barriers to private investment, improve the business environment and lay the foundation for faster, more inclusive economic growth.
The programme will support reforms across critical sectors, including the capital market, digital economy, power sector, agriculture, trade liberalisation under the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), as well as domestic revenue mobilisation.
The global financial institution said the initiative is expected to expand electricity access to about 32 million Nigerians, provide broadband connectivity for 58 million people, improve health and nutrition services for 40 million citizens, and support approximately 9.5 million farmers.
The World Bank added that its six-year Country Partnership Framework is focused on mobilising private capital, strengthening economic resilience and creating productive jobs while supporting investments in infrastructure, digital connectivity, human capital and agricultural productivity.
Speaking on the approval, World Bank Country Director for Nigeria, Mathew Verghis, said the framework builds on Nigeria’s recent macroeconomic reforms, which have contributed to stronger economic growth, improved public revenues and renewed investor confidence.
He stressed that sustaining the reform agenda would be crucial to unlocking the country’s full economic potential and creating more opportunities for millions of Nigerians.
The latest financing package is expected to complement the Federal Government’s efforts to accelerate economic reforms, attract investment and promote long-term, private sector-led growth.
Court Affirms David Mark as ADC Chairman, Dismisses Abejide’s Suit
‘Tinubu’s Gov’t Is Held Hostage by Fraudsters’ – Atiku Declares
No More Khaki! FG Unveils Adire as New NYSC Uniform
Nigeria Lands Fresh $1.25bn World Bank Loan to Drive Jobs, Reforms
BREAKING: Gunmen Launch Fresh Attack on NIPSS
India Blocks WhatsApp Username Rollout Over Rising Scam Fears
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
