Femi Otedola Alleges Tony Elumelu Backstabbed Him, Took Over His UBA, Transcorp Investments

Femi Otedola has accused Tony Elumelu of double-crossing him in deals involving United Bank for Africa (UBA) and Transnational Corporation (Transcorp).

He disclosed that Elumelu betrayed him on multiple occasions. Otedola explained that he financially assisted Elumelu to acquire UBA in 2005. 

But after Otedola went bankrupt in 2008, Elumelu used Otedola’s shares in UBA to service the loan the latter owed to UBA, as well as taking over his investment in Africa Finance Corporation (AFC). 

This was disclosed in a statement on Tuesday, 9 May, which alleged that Elumelu also tricked Otedola into selling his shares in Transcorp to him by using an American firm. 

Furthermore, Otedola said he once revealed to Elumelu during a meeting that he planned to buy Ughelli Power Plant, only for Elumelu to go ahead of him to bid for the same power asset, buying it for $300 million. 

His allegations against Elumelu followed their recent public bromance and tussle to control Transcorp Plc. 

Revealing details of their fallout, Otedola said: “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 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 outbid me by offering to buy the plant for $300 million. 

“And as some would say: the rest is history.”