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Brewing Cold War Between Billionaires Femi Otedola & Tony Elumelu Over Transcorp Plc Gets Messier…..

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Energy tycoon and investor Femi Otedola has stated that his decision to acquire shares of Transnational Corporation of Nigeria (Transcorp) was purely driven by his desire to unlock the actual value of a company severely undervalued by the Nigerian investing public and the company’s leading shareholders.

 

Otedola, 60, announced in a written statement he issued to select media outlets.

 

It is his first commentary on the saga that shook the Nigerian stock market to its foundations weeks ago.

 

In his statement, Otedola explained that he offered to acquire Transcorp Plc for N250 billion ($543 million), but Tony Elumelu, fellow billionaire and the company’s chairman rejected his offer.

 

Otedola recently sold off his entire shares in Transcorp Plc to Elumelu, the company’s chairman and largest shareholder, two weeks after he had amassed up to a 6.3% stake in the company, thereby ending the race for the group’s top ownership.

 

Elumelu had previously increased his stake from 2.07 to 25.9 percent within days of acquiring a significant position.

 

According to sources familiar with the situation, Otedola’s move to take the top seat in the conglomerate’s ownership allegedly upset Elumelu, the Transcorp chairman, causing him to initiate negotiations.

 

According to reports, the Heirs Holdings Chairman eventually agreed to compensate Otedola with millions of dollars and pay him off for the value of his shares.

 

But in a recent statement, Otedola, Chairman of Geregu Power Plc, revealed for the first time how in 2005 he had backed Elumelu’s acquisition of a controlling stake in the United Bank for Africa from Nigerian businessman Hakeem Belo-Osagie.

 

While Elumelu struggled to raise the $100 million he needed for the UBA deal, Otedola said he provided Elumelu with $20 million (N2 billion then) which form part of the funds (alongside other wealthy Nigerians who rallied around and supported Elumelu) and Belo-Osagie later sold his controlling stake to Elumelu.

 

Despite this generous act of friendship, Otedola claimed Elumelu would go on to stab him in the back.

 

According to Otedola, when he informed Elumelu of his interest in acquiring the Ughelli Power Plant in 2012, the Transcorp chairman “quietly went ahead” to outbid him.

 

Otedola further claimed that Elumelu had previously taken advantage of his (Otedola’s) business difficulties and eventual bankruptcy to purchase interests in several firms, including Transcorp Hotel.

 

Full Statement by Femi Otedola

 

In 2005, while Tony was the Managing Director of Standard Trust Bank he approached me to get funds to acquire UBA. I enthusiastically gave him $20 million, which was N2 billion at that time to buy the necessary shares in UBA for the acquisition.

 

After a short period of time the share price moved up and I decided it is was a good moment to sell and get out of the bank.

 

However, Tony appealed to me to hold on to the shares as he was convinced that there were future prospects – so I kept the shares.

 

I became Chairman of Transcorp Hotel in 2007 with a shareholding of 5% and unknowingly Tony gradually started buying shares quietly.

 

By the following year in 2008 I went bankrupt in Nigeria. Tony proceeded to take my shares in UBA to service the interest on my loans and he also took over my shares in Africa Finance Corporation, where I was the largest shareholder.

Shortly after, Albert Okumagba informed me that an American firm wanted to acquire my shares in Transcorp, which I then agreed to sell. However, this supposed American firm turned out to be Tony Elumelu. The revelation of this prompted me to resign as Chairman of the hotel.

 

Years later in 2012 Tony said he wanted to see me so we met in my office where I had previously had a meeting with foreign investors who had not yet departed the premises. Curious to know, he asked what sort of meeting I had had and I disclosed that I wanted to go into the power business, specifically Ughelli Power Plant. Tony quietly went ahead to bid for Ughelli and he outbidded me by offering to buy the plant for $300 million.

 

And as a some would say: the rest is history.

 

Fast forward to the present…

 

I offered to buy Transcorp Plc for N250 billion, but unfortunately, my offer was rejected. My goal was to maximize the company’s potential as a Nigerian conglomerate with a market cap of at least N2 trillion instead of the current N40 billion, but it seems some shareholders have a different vision.

 

As a businessman, I believe in healthy competition and market dynamics. Two captains cannot man a ship, and I respect the majority shareholder’s decision to buy me out. This is the nature of the game.

 

But let me be clear: my offer was made with the best intentions for Transcorp Plc and its shareholders. I saw an opportunity to unlock the company’s full potential and create value for everyone involved.

 

It’s important for investors to understand that free entry and free exit are crucial to healthy markets. The scramble for shares after my acquisition is a testament to the value that Transcorp Plc can offer, and I hope the company continues to thrive under new leadership.

 

My message to Transcorp Plc and its shareholders is this: I remain committed to the growth and success of Nigerian businesses, and I will always be looking for ways to create value for all stakeholders.

 

Stakeholders are unfortunately always shortchanged by getting stipends while the owners and managers of the business live a jet set lifestyle, which is detrimental to the stakeholders. Thank you for the opportunity to engage in this exciting chapter of Transcorp’s history.

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N1.361bn contract fraud allegation rocks Edo Urban Water Corporation, staff petition Okpebholo

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There is tension at the Edo State Urban Water Corporation, following a petition against the Acting Managing Director, Mrs Toyin Rose Adeboyega over an alleged N1.361 billion contract fraud.

SOCIETY REPORTERS reports that Mr Christopher Abhulimen, a staff of the corporation, wrote the petition against the Managing Director to the Edo State Government.

The petition addressed to the State Governor, Monday Okpebholo was dated February 6, 2025.

The petition is titled, ‘Concerning instances of misappropriation of funds, mismanagement of public funds, poorly executed contracts/fictitious contract projects facilitated by the previous administration with the abetment and instrumentality of the Acting Managing Director of Edo State Urban Water Corporation, Mrs Toyin Rose Adeboyega’.

Abhulimen, who listed about eight projects allegedly involved in the fraud, noted that not only did some of the aforementioned projects not exist in reality, but even for the few that exist, there is nothing in them to justify the astronomical funding commitments.

He appealed to Governor Monday Okpebholo to take all necessary actions to ensure thorough investigations of the projects as well as the complicity of the Acting Managing Director, and/or any other person(s) in the facilitation of alleged unwarranted hemorrhage of public funds.

In the petition, Abhulimen, listed the projects and their cost to include N700 million pipeline network reticulation to Ugboha, Uromi and environs, N23 million funding of Abico Pumping Station, and N120 million provision of potable water to Emotan Garden Estate.

Others are N150 million reactivation of water schemes at Etsako and Akoko-Edo, N150 million supply of pipes and accessories to Ugboha/Uromi Water Scheme, N15 million for supply of chemicals, N160 million for the management of Ugboha Dam and N43 million of illegal sales/disposal of exhumed ductile pipe in the course of road construction at Iruekpen and environs.

When contacted, the Acting Managing Director of the Corporation, Mrs Toyin Rose Adeboyega, said a journalist has already written a rejoinder on the petition.

Adeboyega, who forwarded the alleged rejoinder to DAILY POST, denied the allegations levelled against her.

Mrs Toyin Rose Adeboyega, Acting Managing Director, Edo State Urban Water Corporation.

The alleged rejoinder written by Comrade Robinson Akhenoba, titled, ‘Allegation against Mrs Toyin Rose Adeboyega’, alleged that after conducting a thorough investigation in the said ministry, it was found that “these allegations are not only misleading but also a gross misrepresentation of facts”.

Akhenoba, while urging the governor to take time to investigate the allegations as contained in the petition, advised him to remain vigilant and not succumb to the alleged manipulative tactics of those who seek to divide and rule.

According to him, these individuals often rely on misinformation and speculation to achieve their goals, which can lead to unfair treatment of dedicated public servants.

“I implore you to prioritize facts and figures when evaluating these allegations, rather than getting swayed by baseless claims. As findings have shown, Mrs Adeboyega possesses a high level of integrity and a strong commitment to her role. It’s crucial for you to recognize and appreciate her efforts in serving the people

“By focusing on verifiable evidence and ignoring malicious rumors, you can ensure that justice is served,” he added.

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NACAT donates sewing machine, rice, other food items to IDPs in Abuja

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As part of its commitment to nation building and humanitarian works, the Network Against Corruption and Trafficking (NACAT) on Monday donated various food items including bags of rice, cartons of spaghetti, sanitary pads and a sewing machine to Internally Displaced Persons (IDPs) at the Durumi Camp in the Garki area of the Federal Capital Territory, Abuja.

The organization, a notable civil society group dedicated to combating corruption, financial crimes, terrorism, economic sabotage, human trafficking, and drug-related offenses, extended this gesture as part of its Corporate Social Responsibility (CSR) initiative.

The organization further conducted a sensitization session on human trafficking, educating the women on its dangers and equipping them with strategies to protect themselves and their children from becoming victims.

Speaking on behalf of NACAT, the Operational Manager, Stanley Ugagbe, emphasized that the initiative was purely humanitarian and not politically motivated. He reassured the IDPs that NACAT’s intervention was driven by a genuine desire to support their well-being, particularly during the fasting period when food resources might be scarce.

“NACAT is an NGO and our coming here today has no political undertone. We truly empathize with you over your current conditions and it is because of our concerns over your plight that we have come to donate our widow’s mite. We recognize that this is a fasting period, and it is
important that people have access to food while they fast,” Ugagbe stated.

“Your current situation is actually troubling and we pray that soonest, things will get better and you will return to your homes to live your normal lives like you used to live”.

He also took time to educate the women on the increasing trend of human trafficking and shared practical tips on how they could protect themselves and their loved ones from falling prey to traffickers.

Ugagbe defined human trafficking as the illegal trade of people for forced labor, sexual exploitation, and other forms of abuse. According to him, common tricks used by traffickers are promises of good jobs or scholarships abroad, fake modeling or entertainment offers, forced
marriages, fake recruitment agencies, and kidnapping.

While asking them to watch out for these tricks, the manager averred that the dangers of human trafficking include “physical and emotional abuse, forced labor and inhumane working conditions, sexual exploitation and exposure to diseases, separation from family and community,
loss of personal freedom”.

Harping on how to protect themselves against traffickers, Ugagbe enumerated the following measures: “be cautious of offers that seem too good to be true, verify job and travel opportunities before accepting them, avoid traveling alone with strangers, report suspicious activities to
security agencies or NGOs working against human trafficking, educate others on the dangers of trafficking”.

In her opening remarks, NACAT’s Program Manager, Joy Tomo, reaffirmed the organization commitment to supporting displaced persons and promoting self-reliance among them. She highlighted the importance of skill acquisition in reducing dependency and improving economic stability.

We believe that empowering women with skills is key to helping them rebuild their lives. That is why we are donating this sewing machine. We encourage you to use it as a tool for learning and empowerment," Tomo said.

She further instructed that the machine should be handed over to an experienced seamstress within the camp who would train other women, ensuring that the knowledge is passed on and used effectively.

Expressing deep appreciation for NACAT’s intervention, the camp women’s leader, Liyatu Ayuba Yusuf, described the visit as a life-changing moment for many of them.

“Our joy knows no bounds today. We are grateful to NACAT for remembering us in this difficult time. Many of us had never received this kind of education on human trafficking before and now we understand how to protect ourselves and our children,” she said.
Liyatu noted that the sensitization program had opened their eyes to the reality of human trafficking, a menace that disproportionately affects vulnerable communities. She pledged that the women in the camp would make good use of the knowledge gained and ensure that others who missed the session also learn from them.

Also speaking at the event, the Camp Coordinator, Idris Ibrahim-Halilu, who provided Hausa translations throughout the engagement, praised NACAT for its exceptional commitment to humanitarian work. He called on other organizations to follow NACAT’s example and extend their support to displaced persons.

“I appeal to other NGOs to learn from what NACAT is doing. The impact of their visit today has been enormous. We need more organizations like this to come to our aid,” Ibrahim-Halilu said.

Recall that in October last year, NACAT renovated and transformed an orphanage school in Lugbe into a modern school.

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JUST IN: Unity Bank appoints Kolawole Ebenezer as acting CEO

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Unity Bank Plc has announced the appointment of Kolawole Ebenezer as its new acting managing director/chief executive officer.

The appointment follows the retirement of Mrs Oluwatomi Somefun who has completed her tenure as MD/CEO.

The development was announced at the Bank’s 18th Annual General Meeting (AGM), held in Lagos on Wednesday, after securing necessary approval from its primary regulator, the Central Bank of Nigeria (CBN).

Mr Kolawole is a seasoned and consummate banker with over three decades of industry experience. He began his financial services career at Caribbean Finance Limited (an affiliate of CFL in Cayman Island) in Kaduna in 1992. He later joined Ecobank where he worked in various departments of the Bank, both operations and finance suites and rose to the position of Deputy Financial Controller.

He moved to Standard Trust Bank (STB) and worked at various strategic areas including Operations, Regulatory Risk Management and Finance suites and played a pivotal role in the STB/UBA merger. Post-merger, he served as Chief Financial Officer (CFO) of the United Bank for Africa.

He moved to Mainstreet Bank as the Bank’s Group Chief Finance Officer (GCFO) and actively drove the turnaround and transformation initiatives of the Bank. He had a brief stint at Globacom, a foremost and Nigeria’s leading indigenous Telecommunication giant, where he served in various capacities for corporate business development.

Mr Kolawole joined Unity Bank Plc as Chief Financial Officer (CFO) in 2015. He was later, in February 2018, appointed the Executive Director to oversee Finance, Operations and Information Technology, where he played a key role in the Bank’s strategic transformation and cost optimization initiatives which enhanced the Bank’s performance and market feasibility.

In line with the Bank’s succession and business continuity plans, Mr Kolawole is saddled with the primary responsibility to finalise the Bank’s ongoing corporate programmes and other strategic business initiatives of the institution.

Mr. Kolawole holds a First-Class (Hons) Degree in Accounting from Obafemi Awolowo University (OAU), Ile-Ife. He has participated in several management/executive education programmes in Columbia Business School, New York, USA and TheWharton School of the University of Pennsylvania, Philadelphia, USA.

Mr Kolawole is a member of several professional bodies including: Fellow of The Institute of Chartered Accountants of Nigeria (FCA); Fellow, Institute of Credit Administration, (FICA), Honorary Member of the Chartered Institute of Bankers of Nigeria (HCIB), Associate Member of The Nigeria Institute of Management (AMNIM); Member of the Institute of Directors etc.

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