Ecobank Nigeria Limited has filed a fresh suit at the Federal High Court in Lagos to stop Oba Otudeko and his associates from selling over 6.3 billion shares in FBN Holdings (now First HoldCo). The bank is seeking a court order to prevent any attempt to sell, transfer, or tamper with the shares, which are allegedly linked to unpaid debts.
The defendants in the suit include Barbican Capital Limited, Honeywell Flour Mills, Siloam Global Services Limited, Otudeko Obafemi Adedamola (Managing Director of Honeywell Group), Oyeleye Foluke, FBN Holdings Plc, the Corporate Affairs Commission (CAC), and the Nigerian Exchange.
According to court documents dated 3rd April 2025, Ecobank is asking the court to stop the defendants from cashing out or converting to any negotiable instrument the dematerialised shares, which were used as collateral for a loan facility.
The conflict dates back to loans granted by Ecobank to Honeywell Flour Mills and Siloam Global Services in 2010 and 2011. The companies received credit facilities of N2.5 billion and N2.3 billion, respectively. However, they later claimed to have paid N3.5 billion out of a total concession sum of N5.5 billion and argued they were no longer owing.
The legal battle dragged on for years until 2023 when the Supreme Court ruled in favour of Ecobank, declaring that the debtors must repay all outstanding loans. Following the judgment, Ecobank calculated the outstanding debt as over N20.8 billion as of March 2025.
Ecobank now claims that Honeywell and its affiliates secretly sold a 71.69% stake to Flour Mills of Nigeria in April 2022 to frustrate debt recovery efforts. The bank also said Barbican Capital was set up as a vehicle to buy a controlling stake in FBN Holdings, using proceeds from the stake sale and shares earlier pledged as loan collateral.
Jafaru Kupa, a finance officer at Ecobank, said in an affidavit that the loan amount had risen beyond N20 billion and that the Supreme Court decision affirms Ecobank’s right to recover the money.
Ecobank is asking the court to:
- Declare that the funds used by Barbican and the other defendants to buy shares in FBN Holdings belong to Ecobank.
- Order FBN Holdings and the Nigerian Exchange to change the shareholding register to reflect Ecobank as the rightful shareholder.
- Instruct Honeywell to hand over the value of 618 million pledged shares in Honeywell Flour Mills.
- Recognise Ecobank as the sole beneficiary of all shares held on behalf of Barbican and ensure all proceeds from the shares go to the bank.
Justice D.I. Dipeolu has adjourned the case to 15th April 2025 for hearing.
