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Business News of Saturday, 1 May 2021

Source: The Sun

CBN swoops on Otudeko’s Honeywell Plc, orders loan repayment in 48 hours

The Central Bank of Nigeria (CBN) has swooped on Honeywell Flour Mills PLC belonging to Mr Oba Otudeko and ordered it to repay huge loans owed First Bank Plc within 48 hours.

Otudeko, former Chairman of First Bank Holding Company (the parent company of First Bank Plc), was sacked on Thursday by CBN over governance issues and utter disregard to regulatory control.

Government sources told Saturday Sun that CBN was concerned that First Bank did not comply with regulatory directives to divest its interest in HoneyWell Flour Mills despite several reminders.

It was further gathered that after four years, First Bank was yet to perfect its lien on the shares of Mr. Oba Otudeko in FBN Holdco which collaterized the restructured credit facilities for HoneyWell Flour Mills, contrary to the conditions precedent for the restructuring of the company’s credit facility.

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