Femi Otedola Accuses Zenith Bank of N5 Billion Fraud

In the Nigerian financial sector, renowned billionaire Femi Otedola has accused Zenith Bank, particularly its chairman Jim Ovia, of fraudulent activities involving his company, Seaforce Shipping Limited. These allegations, which are currently under investigation by the Force Criminal Investigation Department (FCID), claim unauthorized trading activities resulting in a debt of over 5 billion Naira.

Otedola, who also serves as the chairman of FBN Holdings Plc and CEO of Geregu Power Plc, asserts that his company’s account was used for trading in 2011 without his knowledge or consent. This accusation comes during a period of financial resurgence for Otedola, whose net worth has climbed to $1.7 billion after previous fluctuations.

The allegations include the unauthorized withdrawal of N205,346,573 from Seaforce’s account in 2011, a 5 billion Naira loan that Otedola claims was neither applied for nor received, and discrepancies in the account statements provided by Zenith Bank. Otedola has presented a letter dated March 19, 2018, from Zenith Bank to Seaforce’s auditors, which stated a debt of only N2,278,420 on the same account, contrary to the N5 billion recorded in the bank statement obtained by TheCable.

In response to these allegations, Seaforce Shipping Limited, along with Zenon, Luzon Oil and Gas, Garment Care Limited, and Otedola himself, has secured a federal high court injunction against Zenith Bank, Quantum Zenith Securities and Investment, Veritas Registrar, and Central Securities Clearing System. This injunction prevents the defendants from trading shares or paying dividends until the motion for an interlocutory injunction is heard.

This scandal has highlighted issues surrounding the operations of one of Nigeria’s leading banks and broader concerns about corporate governance and financial transparency within the country’s banking sector. As the investigation continues, the financial community and the public await further details and the potential ramifications of these serious allegations.