First Bank: Otudeko Loses Again

By Fola James

Things are definitely not going well for Oba Otudeko’s one of Nigeria’s foremost industrialists seven months after he was removed as Chairman of First Bank Holdings by the Central Bank of Nigeria, CBN.

On Monday, Flour Mills of Nigeria, FMN announced that it has acquired Honeywell Limited, a company founded many years ago by Otudeko, and has grown to become a household name in the food manufacturing sector.
Flour Mills, a rival company, said in a statement that it has taken over Honeywell in a deal worth over N80 billion. The acquired shares include over 71 per cent of Otudeko equities and 5.06 percent First Bank shares in the company.

According to a statement released by the Nigerian Exchange, NGX Omoboyede Olusanya, the group managing director of FMN, said the take-over of Honeywell is part of the company’s strategic drive to become the leading agro-allied industries in the country.
“The proposed transaction is part of our global growth strategy; which is aligned with our vision to not only be an industry leader but also, a national champion for Nigeria in the Food and Agro-allied industries,’ Olusanya said.
On his part, Obafemi Otudeko, managing director of Honeywell Group Limited, and son of Oba Otudeko said that the transaction would create an industrial behemoth that transcends Nigeria.

“Today’s announcement is in line with the evolution of Honeywell Group and our vision of creating value that transcends generations,” Otudeko said.
The development, sector analysts say is another big loss for Otudeko whose words were once law in the nation’s financial and manufacturing sectors because of his boardroom successes spanning over 40 years in the country’s business environment.
For instance, as the founder of Honeywell Group, Otudeko sowed sweat and tears, nursing the company to become a major employer of labour, with vast investment in other sectors such as oil and gas, real estate and maritime.

But in a dramatic turn of event for the man who, according to Forbes’ estimate is worth around $600 million, things began to fall apart for him this year after he was sacked as the Chairman of First Bank Holdings following the botched ouster of the managing director of First Bank Limited, Adesola Kazeem Adeduntan by the Otudeko-controlled board.

The boardroom crisis also consumed Dere Awosika another boardroom amazon as the Godwin Emefiele-led CBN came down with a hammer that restructured the leadership of the first generation bank in favour of Hassan Odukale, a former managing director of Leadway Assurance Company who was named by the apex bank as the Chairman of First Bank Holdings Plc, the parent company of First Bank Limited.
The CBN’s sweep which affected all the directors of the bank was prompted by the failure of First Bank to comply with CBN directive to divest its interest in Honeywell, apart from the allegation of insider abuse levelled against the Otudeko-led faction in the over 127 years bank.

The Regulator had in letter to the management of First Bank warned that it complied with the order “failing which the CBN will take appropriate regulatory measures against the insider borrower and the bank.” But what eventually led to the ouster of Otudeko, was the coup by the board controlled by him to remove Adeduntan as the chief executive of First Bank Limited. Adeduntan is said to have serially protested insider abuse by the Otudeko-led board which led to huge bad loans that the bank is now contending with.