Banking Battle: Ecobank Drags Otudeko’s Son to Court Over N13.5B Debt & First Bank Power Grab

AUDOZ BUZZ NEWS REPORT

Date: April 6, 2025

By: AUDOZ BUZZ Newsroom

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Business Court to Hear Ecobank’s Suit Against Otudeko’s Son Over Disputed First Bank Shares April 15


LAGOS – The Federal High Court sitting in Lagos will on April 15, 2025, begin hearing a high-stakes legal battle between Ecobank Nigeria Limited and Dr. Oba Otudeko, former Chairman of FBN Holdings Plc, in a case that could reshape the dynamics of shareholder control in Nigeria’s banking industry.


Ecobank is seeking judicial intervention over what it describes as a calculated move by Otudeko—through his affiliated investment vehicle, Barbican Capital Limited—to acquire a controlling interest in First Bank Holdings while allegedly evading a N13.5 billion debt confirmed by Nigeria’s Supreme Court in January 2023.


According to court filings, Ecobank claims that Otudeko, in his capacity as guarantor, pledged to ensure repayment of substantial loans disbursed to firms under the Honeywell Group, including Honeywell Flour Mills Plc, Anchorage Leisures Limited, and Siloam Global Services Limited. Despite a final court ruling affirming the debt, the bank alleges that no repayment has been made.


In July 2023, Barbican Capital Limited, a company linked to Otudeko, purchased approximately 4.77 billion shares in FBN Holdings, raising eyebrows within the financial community. The move effectively handed Otudeko a 13.3% stake, making him the majority shareholder.


Ecobank contends that the share acquisition was a strategic ploy to shield assets from lawful debt recovery processes. The bank has urged the board of FBN Holdings to halt the ratification or registration of the disputed shares, warning that doing so could be tantamount to aiding in the diversion of funds in defiance of a Supreme Court judgment.


In its petition, Ecobank argues:


 “This attempt to re-emerge as the majority shareholder in FBN Holdings while ignoring lawful debt obligations undermines the credibility of the financial system and sets a dangerous precedent.”


Legal experts and market watchers are closely monitoring the case, which is poised to test the enforcement strength of Nigeria’s corporate governance and debt recovery frameworks.


The outcome of the April 15 hearing will be critical not only for the parties involved but for the broader investment and regulatory environment in Nigeria.


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