In a recent development, Ecobank Nigeria Limited has advised FBN Holdings, the parent company of First Bank of Nigeria Limited, against accepting a strategic investment made by the Honeywell Group. Ecobank claims that Honeywell Group and its founder, Dr. Oba Otudeko, have significant outstanding debts amounting to N13,507,052,417.99. Ecobank argues that approving the investment would divert funds that should be used for loan repayment.
In a letter addressed to the Managing Director of FBN Holdings, Ecobank’s lawyers highlighted that the loans were personally guaranteed by Otudeko. The letter stated that Ecobank had filed multiple lawsuits against Honeywell Group Limited, Siloam Global Services Limited, Anchorage Leisures Limited, Honeywell Flour Mills Plc, and Otudeko to recover the outstanding debts. The Supreme Court had already confirmed the indebtedness and commanded the repayment of the debts, which continue to accrue interest.
Ecobank further alleged that Otudeko had attempted to divert assets and funds through a company called Barbican Capital Limited. This entity, allegedly created after the Supreme Court’s judgment, purportedly purchased a significant number of FBN Holdings shares. Ecobank urged FBN Holdings to reject the approval and registration of these shares, as it would facilitate the diversion of funds meant for debt repayment.
Ecobank demanded that FBN Holdings provide details of the transaction within seven days and cautioned against actions that could violate the Supreme Court’s judgment. They emphasized that the Honeywell companies, including Otudeko, were obligated to pay their outstanding debts to Ecobank.