A Deputy Governor of the Central Bank of Nigeria, CBN, Mr. Adebayo Adekola Adelabu has been interrogated and admitted to administrative bail by the Economic and Financial Crimes Commission, EFCC, for alleged abuse of office and his role in the alleged siphoning of shareholder funds via phoney loans at First Bank Plc, where he previously served as Executive Director and Chief Financial Officer.

Sources knowledgeable about the development told THEWILL that investigators believe that Adelabu connived with former GMD of the bank, Olabisi Stephen Onasanya and erstwhile chairman of the bank, Chief Oba Otudeko, to arbitrarily approve loans running into several billions of naira which have since gone bad.

The EFCC is particularly looking at billions of naira in bad loans approved for Otudeko’s companies during his tenure as Chairman of the bank.

Insider abuse is common in Nigerian banks with chief executives using their positions to arbitrarily approve loans to themselves and cronies with no plans of paying back. Otudeko and his companies owe the bank in excess of N70 billion.

The recklessness of the bank bosses prompted the CBN to introduce stiffer corporate governance rules to protect shareholder funds from being abused by highly-placed commercial bank insiders.

THEWILL further gathered that Onasanya and Otudeko had been quizzed and released on bail as well.

Adelabu, who is believed to have amassed a huge war chest, is preparing a bid for the governorship of Oyo State in 2019. He was grilled for hours on Monday at the Ikoyi, Lagos office of the EFCC and subsequently released on administrative bail.

EFCC sources say he is expected to return to the anti-graft agency for further questioning and may be charged to court alongside Otudeko and Onasanya for fraud and insider abuse when investigations are concluded.

Source: THEWILL