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The Economic and Financial Crimes Commission, EFCC, has stepped into the current management crisis rocking the First Bank of Nigeria.
The Street Journal gathered that the anti-graft agency has invited Oba Otudeko, as well as other prominent figures over some dubious loans taken from the financial institution, which has been present in Nigeria for over a century.
According to a memo, Oba Otudeko, who is the owner of Honeywell Flour Mills was asked to repay a loan to First Bank within 48 hours.
“Consequently, the company (Honeywell Flour Mills) is required to fully repay its obligations to the bank within 48 hours, failing which the CBN will take appropriate regulatory measures against the insider borrower and the bank,” according to a memo made available.
Olumuyiwa Olowogboyega
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The Central Bank of Nigeria has directed the Oba Otudeko owned Honeywell Flour Mills to repay a loan to First Bank within 48 hours, according to a memo seen by TechCabal.
In the letter seen by TechCabal dated April 26, 2021, the CBN stated, âConsequently, the company (Honeywell Flour Mills) is required to fully repay its obligations to the bank within 48 hours, failing which the CBN will take appropriate regulatory measures against the insider borrower and the bank.â
Insider lending is when a bank makes a loan to one or more of its own officers or directors.
Oba Otudeko serves as the chairman of FBN Holdings PLC, the holding company which owns First Bank. Otudeko also served as Chairman of First Bank until 2010 and is also the Chairman of the Honeywell Group.