Adesuwa Ezenwa, a former employee of First Bank of Nigeria Limited, has leveled serious allegations against billionaire industrialist Oba Otudeko, accusing him of orchestrating a massive fraud during his tenure as chairman of FBN Holdings Plc, the parent company of the bank.
The accusations, which also implicate former First Bank Managing Director and CEO Bisi Onasanya, have sent ripples through Nigeria’s financial sector.
Ezenwa, who was dismissed from her position at First Bank in October 2016, has initiated legal action against the bank at the National Industrial Court of Nigeria, Lagos Judicial Division.
She is seeking redress for what she describes as an unjust termination of her employment, which she claims was executed “without any reason whatsoever.”
As part of her legal suit, she is demanding N500 million in damages and an additional N25 million to cover legal costs.
The allegations center around a series of unsecured loans, amounting to billions of naira, that were granted to companies in which Mr. Otudeko allegedly had substantial investments.
According to Ezenwa, these loans were approved under questionable circumstances, with little regard for due diligence, and ultimately left the bank exposed to significant financial risk.
One of the most explosive claims involves a N12 billion loan that was purportedly granted to a company linked to Otudeko but was falsely recorded as a loan to the Stallion Group of Companies.
Ezenwa alleges that out of this N12 billion, a significant portion was funneled into accounts associated with Otudeko and other companies, with little to no intention of repayment. The loan remains unpaid to date.
Ezenwa contends that her role as a relationship manager within the bank’s corporate banking division was limited to executing instructions from her superiors, with no independent authority to grant or disburse loans.
Despite this, she was held responsible by the bank’s credit disciplinary committee for the questionable transactions, while her superiors, who she claims were the true architects of the deals, faced no such penalties.
She further alleges that she was unfairly blamed for failing to whistleblow on these transactions, despite the fact that the individuals she would have reported to were the very ones involved in the misconduct.
Ezenwa argues that she was made a scapegoat for systemic issues within the bank’s management and that her dismissal has caused significant damage to her reputation and future career prospects.
The court documents also highlight a broader pattern of unsecured loans granted under dubious circumstances. Ezenwa points to several other transactions, including a N2 billion loan to Broadwaters Resources Company Nigeria Limited, which she claims was used as a conduit by high-ranking bank officials to siphon money.
Ezenwa’s lawsuit has now brought these issues into the public eye, raising questions about the governance practices at one of Nigeria’s largest financial institutions.
Her lawyer, Seyi Sowemimo, emphasized that his client is being unfairly targeted for actions that were beyond her control, stating, “She is being made a scapegoat for a lot of questionable transactions within the bank, which she is claiming innocent of.”
As the legal proceedings continue, the case promises to shed light on the inner workings of First Bank during Otudeko’s tenure and could have significant implications for the individuals involved.
The trial, which has already seen subpoenas issued to the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria for audit reports, is set to be a closely watched legal battle.
Otudeko and First Bank have yet to respond to the allegations in court. As the story unfolds, it will undoubtedly draw intense scrutiny from both the public and financial regulators, with potential repercussions for Nigeria’s banking sector as a whole.
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