Felak Group Slams $7M Providus Bank Allegation, Demands Retraction

When Felak Group issued a blunt denial on September 18, 2025, the Nigerian business world took notice. The statement, signed by Aisha Achimugu, OFR, categorically rejected claims made by commentator Chukwudi Iwuchukwu that linked the conglomerate and its oil‑and‑gas arm, Oceangate Engineering Oil & Gas, to an alleged $7 million cash deposit at Providus Bank. The company called the report “false, contradictory and misleading,” and warned of legal action if a full retraction is not published. The dispute pits a two‑decade‑old diversified group against a single‑source allegation that, according to Felak, lacks any factual basis.

• Allegation published: early September 2025
• Denial released: 18 September 2025, Abuja
• Amount in question: $7 million (approx. ₦3.2 billion)
• Key parties: Felak Group, Oceangate Engineering Oil & Gas, Providus Bank
• Potential legal fallout: defamation suit pending

Background of Felak Group

Founded in 2000, Felak Group describes itself as a diversified conglomerate with interests ranging from oil and gas to digital solutions and media consulting. Over 23 years, the firm reports having completed 78 projects across Nigeria and neighboring countries, employing more than 100 staff in its various divisions. Its nonprofit arm, the SAM Empowerment Foundation, funds education and health initiatives in underserved communities. The group’s flagship subsidiary, Oceangate Engineering Oil & Gas, focuses on offshore drilling support and pipeline engineering, a sector that contributed roughly 12 % of Nigeria’s oil export revenue in 2024.

The Alleged $7 Million Transaction

According to the original commentary by Chukwudi Iwuchukwu, a $7 million cash deposit was allegedly made at Providus Bank in Lagos on 3 August 2025. The piece suggested the funds were tied to a joint venture between Felak Group and an unnamed foreign partner. However, Felak’s legal team points out that the court documents cited in the article reference a hearing held in Abuja on 7 August, where no mention of a Lagos deposit was made. The geographic inconsistency, they argue, signals a lack of due diligence on the part of the commentator.

Felak Group’s Counter‑Statement

In a 1,200‑word press release, Felak Group’s communications director, Mr. Ladi Okonkwo, said, “We categorically state that neither Dr. Mrs. Achimugu nor Oceangate Engineering Oil & Gas has any connection whatsoever to the alleged transaction.” He added that the attempt to associate the group with the cash movement “represents a gross abuse of free expression.” The statement demanded that Chukwudi Iwuchukwu issue an “immediate and unconditional retraction and apology” with the same reach as the original article, underscoring the company’s intent to protect its reputation.

Felak also warned that failure to comply would trigger “all available legal remedies,” including a potential defamation lawsuit that could see damages exceeding ₦5 billion, based on precedent set in the 2022 *Aluko v. Daily Trust* case.

Reactions from Stakeholders

Providus Bank declined to comment directly, issuing a brief statement that “we treat all regulatory and legal matters with the utmost seriousness and will cooperate with any legitimate investigation.” Meanwhile, corporate law professor Dr. Ngozi Okonkwo of the University of Lagos cautioned that “public accusations without solid evidence can erode investor confidence, especially in sectors as capital‑intensive as oil and gas.” She noted that the Nigerian Securities and Exchange Commission has, in the past year, launched three high‑profile probes into alleged financial misconduct involving large conglomerates.

Industry observers also pointed to the timing of the allegation—just weeks before the Annual General Meeting of the Nigerian Association of Oil Engineers—suggesting a possible attempt to sway opinion ahead of key policy discussions.

Implications for Corporate Reputation in Nigeria

If Felak’s legal threat materialises, it could set a precedent for how Nigerian firms respond to unverified media claims. A successful defamation suit would reinforce the notion that reputational risk management must include vigorous legal recourse, not just public relations efforts. Conversely, if the commentator refrains from a retraction, the episode may embolden other whistle‑blowers—or opportunists—to publish speculative pieces, potentially muddying the waters for investors.

For Felak Group, the stakes are not merely about a single alleged cash flow. The controversy touches on the broader narrative of transparency in Nigeria’s private sector, where conglomerates often operate behind opaque structures. A clear resolution—whether through court or settlement—could either restore confidence in the group’s governance or leave lingering doubts that impact future project bids.

Key Facts

1. Allegation source: commentary by Chukwudi Iwuchukwu, published early September 2025.
2. Denial date: 18 September 2025, issued from Abuja.
3. Amount disputed: $7 million (≈₦3.2 billion).
4. Primary entities: Felak Group, Aisha Achimugu (OFR), Oceangate Engineering Oil & Gas, Providus Bank.
5. Potential legal exposure: defamation claim possibly exceeding ₦5 billion.