SEC Cracks Down on Ikeja Hotel: Forensic Probe, Debt Restatement, and Share Recovery Ordered

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Olori Uwem

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Mar 18, 2024
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SEC Cracks Down on Ikeja Hotel: Forensic Probe, Debt Restatement, and Share Recovery Ordered


The Securities and Exchange Commission (SEC) has taken decisive regulatory action on Ikeja Hotel Plc, ordering a forensic investigation, a restatement of financial records, and the recovery of shares and funds linked to unauthorised transactions dating back over two decades.

In a statement filed on the Nigerian Exchange Limited (NGX) on Thursday, Olubunmi Tadema, Company Secretary of Ikeja Hotel Plc and OOT Nominees Ltd, confirmed that the directives are part of SEC’s effort to resolve longstanding disputes among shareholders — specifically, the two factions of the Ibru family: Goodie Ibru and the Estate of Alex Ibru.

Background and Forensic Findings

The SEC’s involvement stems from shareholder conflicts that persisted even after a Settlement Agreement signed in 2017. Following the agreement, the SEC appointed Akintola Williams Deloitte to conduct a forensic audit of the company and its investee entities. The audit unearthed a series of irregularities, prompting the company’s Board to consult with external auditing firm Grant Thornton in formulating a response.

After a thorough review, the SEC issued its findings and official directives on June 27, 2025.

Key Directives from SEC
1. Recovery of Illegally Sold Shares:
SEC ordered Goodie Ibru and Associated Ventures International Limited (AVL) to return to Ikeja Hotel the monetary equivalent of shares in 13 quoted companies, which were acquired using the proceeds of an unauthorised sale of one million Union Bank Plc shares in 2001. These companies include Nestle, UBA, Mobil, Nigerian Breweries, Julius Berger, Cadbury, Total, and GTBank, among others.
The value to be returned will be based on market prices on the dates the shares were sold, along with all accrued dividends and bonuses.

2. Restatement of Debt:
SEC found that Ikeja Hotel’s financial statement overstated a debt owed to AVL. The figure listed was ₦1.23 billion, but documentation only supported ₦167.39 million. The company is instructed to immediately correct this misstatement in its books.

3. Shareholder Loans Adjustment:
All ₦12 billion in shareholder loans must be discounted by 40% per shareholder, and repayments made based on the adjusted amounts.

4. Governance Reforms:
A new Board of Directors must be constituted with key governance rules:
• At least one-third of board members must be independent non-executive directors.
• The Chairman must also be an independent non-executive director.
• Only two family members are allowed on the board—one from each Ibru group.

5. Mandatory Shareholder Agreement:
All shareholders holding 10% or more of Ikeja Hotel’s shares must sign a shareholder agreement approved by the SEC to foster transparency and prevent future disputes.

⚖️ SEC’s Position

The Commission expressed optimism that these measures will help bring closure to years of boardroom wrangling, while restoring investor confidence and laying the groundwork for sustainable corporate governance within Ikeja Hotel Plc.