Oba Otudeko is a renowned businessman who in no doubt has been very successful in the business ventures he went into. He was the chairman of First Bank plc.before he was recently sacked by the Central Bank of Nigeria alongside other board members of the bank.
However, the business tycoon and chairman of the Honeywell Group, Oba Otudeko has found himself in an entanglement of financial trouble as the Central Bank of Nigeria has asked Honeywell Flour Mills to fulfill its obligation of 75 billion naira to First Bank of Nigeria within 48 hours or dance to the tune of the music played by the Central Bank of Nigeria.
The business mogul and chairman had obtained a facility loan for his company, Honeywell Flour Mills, using his position of chairman.
Oba Otudeko allegedly tried to offset his debt to the First bank by trying to position one of sons as the Managing Director and. Chief Executive Officer of the bank.
First bank is one of the top leading banks in the financial sector of Nigeria but is currently caught up in the mismanagement and internal crises that can cause disintegration of the bank if not being immediately addressed. All these internal crises and mismanagement of funds is solely connected to the chairman of the bank, Oba Otudeko.
The apex bank seems to be upset about the negligence of duty by the First Bank on not being able to secure their collateral tied to the loan obtained by Otudeko and as well as their non-compliance to divesting its interest in Honeywell Flour Mills despite being warned severely by the apex bank.
Aside from the loan Oba Otudeko obtained from First Bank of Nigeria, another story of his debt with Ecobank started, and now it has developed into a tale of epic proportions.
Ecobank had also given Honeywell Flour Mills, a loan facility of #5.5 billion, which the company has since defaulted on its repayments. This has already turned into a subject of litigation as the case is still ongoing at the Supreme Court of Nigeria.
In the middle of this crisis, there is still an unresolved issue of the Airtel Bharti shares being held by Ecobank which seems to have been bought by Oceanic- an AMCON acquired asset for which Oba Otudeko had insisted on a rule that made provision for his first right of refusal.
However, investigations by the concerned regulatory bodies remain ongoing but it seems obvious that the dispute on the present loan debacle is going to take a while to resolve.
Let’s just wait, watch and see how it is going to pan out for Oba Otudeko.