Storm at First Bank: Fresh Allegations Link Femi Otedola to Serial Corporate Hijack Schemes as Conflict-of-Interest Scandal Rocks Oil Sector

A monumental corporate and regulatory scandal is unfolding around the Chairman of First Bank Holdings, Mr. Femi Otedola, who is now facing intensified public criticism over what insiders describe as a patterned corporate takeover strategy using bank loans, judicial influence, and regulatory loopholes to seize thriving businesses.

This explosive development comes as TheCityPulseNews uncovers intricate conflicts of interest involving a prominent lawyer, Mr. Babajide Koku, SAN, whose dual roles in the legal battles between Nestoil/Neconde and FBNQuest/First Trustees have raised serious concerns about potential regulatory compromise at the highest levels of Nigeria’s oil and gas sector.

Unmasking the Web: Months of Documents, Insider Testimonies Reveal Alarming Dual Roles

A months-long investigation by our correspondent has uncovered startling evidence that Koku, SAN a personal lawyer to Mr. Otedola represented both the FBN Parties and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in lawsuits that could determine the fate of OML 42, one of Nigeria’s most critical oil assets.

This double representation, seen in Suit No. FHC/L/CS/2127/2025 and Suit No. FHC/ABJ/CS/2369/2025, suggests far more than an ethical lapse. It raises fears of a coordinated attempt to compromise regulatory neutrality in favour of powerful private interests.

Court documents reviewed by this newspaper undeniably show Koku’s name on filings for both sides, sparking alarm among legal experts who warn that the scenario is a classic recipe for regulatory capture.

A senior observer in the petroleum sector described it bluntly:

“This is equivalent to letting the fox guard the henhouse.”

The crisis traces back to 20 October 2025, when FBN Parties sued Nestoil and Neconde over an alleged $1 billion debt. Yet, behind the scenes, a more suspicious sequence was unfolding.

Weeks earlier, on 9 September 2025, FBN Trustees sought NUPRC’s consent to register a second charge over OML 42. The regulator signaled approval triggering Neconde’s counter-litigation to prevent what it feared was a hostile takeover attempt.

Shockingly, Koku appeared in court for both FBN Trustees and the NUPRC, raising the most serious questions about impartiality and corporate interference ever recorded at the Commission.

Legal experts interviewed described his dual appearance as “a red alert” for Nigeria’s investment climate.

Beyond the courtroom, industry leaders warn that this unfolding saga mirrors a disturbing pattern attributed to Mr. Otedola:

Issuing loans to high-value businesses

Inflating or manipulating loan records

Withholding bank statements from debtors

Securing court orders via influential judges

Taking over companies under the guise of debt recovery

In fact, sources confirm that Nestoil/Neconde officials have repeatedly demanded bank statements and loan reconciliation documents from First Bank for over three years—without success.

One of them told our correspondent:

“How can we owe what we cannot see?
First Bank will not release the documents that show whether the debt even exists.”

According to multiple insiders, this secrecy appears consistent with Otedola’s earlier controversial takeovers of Sahara Group and General Hydrocarbon, which critics also describe as being executed through loan manipulation and judicial capture.

Earlier this year, Otedola reportedly approached Neconde seeking to acquire 16% of OML 42 a request sharply rejected due to fears based on his past dealings.

Not long after, First Bank began an aggressive push to enforce the alleged $1 billion debt, which Neconde says is unverifiable without documentation.

Industry analysts estimate OML 42 accounts for 5% of Nigeria’s crude oil production and could generate hundreds of millions over its lifespan an irresistible asset for any high-stakes business empire.

One expert was categorical:

“It is now obvious the bank’s objective is not repayment it is acquisition.”

With Koku representing both a creditor and the regulator, experts warn this case could:

Trigger motions for disqualification

Compromise NUPRC’s credibility

Harm investor confidence

Cast long shadows over Nigeria’s regulatory framework

They insist the government must immediately overhaul the regulator’s external counsel appointment process to prevent powerful financiers from quietly influencing national assets.

As both lawsuits move through the Federal High Courts in Lagos and Abuja, the spotlight intensifies on:

Babajide Koku, SAN

NUPRC leadership

FBNQuest and First Trustees

Mr. Femi Otedola himself

The final rulings may determine far more than who controls OML 42 — they may test Nigeria’s resolve to defend transparency, fairness, and ethical standards in a sector long clouded by secrecy.

“Nigeria’s investment reputation is on the line. Only transparency will save the system from collapse.”