Mr. Femi Otedola, one of Nigeria’s prominent billionaires, has accused Jim Ovia, Chairman of Zenith Bank, of engaging in fraudulent activities involving the bank account of his company, Seaforce Shipping Limited. Mr. Otedola has taken Zenith Bank Plc and Jim Ovia to the Federal High Court in Lagos over allegations of illegal and unauthorized charges to his account and the illegally and forcefully recovering his shares in Zenith Bank.
Build-Up to the Controversy
The friction between Mr. Otedola and Zenith Bank originated from claims of dishonest accounting in the calculation of his liabilities before the bank sold his multibillion-naira debt to the Asset Management Corporation of Nigeria (AMCON). Mr. Otedola, a top shareholder in Zenith Bank, allegedly borrowed over NGN 30 billion from the bank for a business deal. When the loan became overdue, the bank’s board sold his shares without notifying him. After Mr. Otedola repaid the loan, he discovered his shares had already been sold.
An anonymous tip has suggested that Jim Ovia, then the General Manager of Zenith Bank, wanted Dr. Dame Adaora, the current Group Managing Director (GMD), to succeed him. To ensure this, Ovia allegedly orchestrated the sale of Mr. Otedola’s shares, fearing that Otedola’s influence as a major shareholder could obstruct his plans. During this period, Ovia sacked four top General Managers of Zenith Bank. It is believed that one of these sacked General Managers acted as a whistleblower, alerting Mr. Otedola to the fraudulent transactions.
An anonymous tip has suggested that Jim Ovia, then the General Manager of Zenith Bank, wanted Dr. Dame Adaora, the current Group Managing Director (GMD), to succeed him. To ensure this, Ovia allegedly orchestrated the sale of Mr. Otedola’s shares, fearing that Otedola’s influence as a major shareholder could obstruct his plans. During this period, Ovia sacked four top General Managers of Zenith Bank. It is believed that one of these sacked General Managers acted as a whistleblower, alerting Mr. Otedola to the fraudulent transactions.
Unauthorized Transactions
Mr. Otedola alleges that Zenith Bank fabricated a loan of NGN 6 billion on Seaforce Shipping’s account, which he asserts never existed. This alleged fictitious loan, labeled as a “CP Facility,” was followed by a series of debits and credits, creating the illusion of financial activity. Account statements seen by Nairametrics showed significant debits, including NGN 6 billion on February 7, 2008, and NGN 4,475,326,935.25 on February 7, 2009.
TheCable reported that these transactions were conducted without Seaforce Shipping’s authorization or awareness. A major point of contention is the discrepancy in the reported debt amounts. In a letter dated March 19, 2018, Zenith Bank informed Seaforce Shipping’s auditors, Shofolawe-Bakare & Co., that the account had a debt of only NGN 2,278,420. However, the bank statement reviewed by Nairametrics indicated a closing balance of NGN -5,916,704,059.13, with total debits amounting to NGN 16,927,628,581.84 and total credits of NGN 11,010,924,522.71.
TheCable reported that these transactions were conducted without Seaforce Shipping’s authorization or awareness. A major point of contention is the discrepancy in the reported debt amounts. In a letter dated March 19, 2018, Zenith Bank informed Seaforce Shipping’s auditors, Shofolawe-Bakare & Co., that the account had a debt of only NGN 2,278,420. However, the bank statement reviewed by Nairametrics indicated a closing balance of NGN -5,916,704,059.13, with total debits amounting to NGN 16,927,628,581.84 and total credits of NGN 11,010,924,522.71.
Legal Actions and Investigations
In response to these revelations, Mr. Otedola has taken legal action. Seaforce Shipping, along with Zenon, Luzon Oil and Gas, Garment Care Limited, and Mr. Otedola himself, has secured a Federal High Court injunction against Zenith Bank, Quantum Zenith Securities and Investment, Veritas Registrars, and the Central Securities Clearing System. This injunction prevents these entities from trading shares or paying dividends until a motion for an interlocutory injunction is heard.
Zenith Bank declared a dividend of NGN 3.5 per share on April 8, 2024, and made payments a month later. This injunction remains in effect until the hearing of the motion on notice for an interlocutory injunction. Additionally, the Force Criminal Investigation Department (FCID) of the police is investigating the allegations, with senior officials of Zenith Bank already questioned as part of the ongoing probe.
Zenith Bank declared a dividend of NGN 3.5 per share on April 8, 2024, and made payments a month later. This injunction remains in effect until the hearing of the motion on notice for an interlocutory injunction. Additionally, the Force Criminal Investigation Department (FCID) of the police is investigating the allegations, with senior officials of Zenith Bank already questioned as part of the ongoing probe.
Claims
In suit No: FHC/L/CS/425/24 dated March 6, 2024, where Zenith Bank, Quantum Zenith Securities, Veritas Registrars, and Central Securities Clearing System are joined as defendants, Mr. Otedola is seeking the court’s relief to make the following orders:
1. An order directing Zenith Bank Plc to refund the sum of NGN 205,346,573 wrongfully debited on January 27, 2011, from the account of Zenon Petroleum Limited, plus accrued interest.
2. An order directing Zenith Bank to release, return, and credit Zenon Petroleum Limited with 1,300,000,000 shares of Zenith Bank, which were illegally taken in 2011.
3. An order of perpetual injunction restraining Zenith Bank and other defendants from further withholding, selling, transferring, trading, and registering the shares of Zenon Petroleum Limited.
4. An order directing the defendants to jointly and severally pay NGN 88 billion in unpaid dividends accrued on the shares of Zenon Petroleum Limited, illegally recovered by Zenith Bank from 2011 to date.
5. An order directing the defendants to pay accrued interest at the rate of 10 percent per annum on the sum of NGN 88 billion from April 18, 2012, until judgment is delivered.
6. An order directing the defendants to refund any wrongful debits and pay the plaintiff accrued and unpaid dividends on the account and shareholding of Zenon Petroleum, as determined by an independent audit firm.
7. The plaintiff also requests the court to grant damages of NGN 800 million.
1. An order directing Zenith Bank Plc to refund the sum of NGN 205,346,573 wrongfully debited on January 27, 2011, from the account of Zenon Petroleum Limited, plus accrued interest.
2. An order directing Zenith Bank to release, return, and credit Zenon Petroleum Limited with 1,300,000,000 shares of Zenith Bank, which were illegally taken in 2011.
3. An order of perpetual injunction restraining Zenith Bank and other defendants from further withholding, selling, transferring, trading, and registering the shares of Zenon Petroleum Limited.
4. An order directing the defendants to jointly and severally pay NGN 88 billion in unpaid dividends accrued on the shares of Zenon Petroleum Limited, illegally recovered by Zenith Bank from 2011 to date.
5. An order directing the defendants to pay accrued interest at the rate of 10 percent per annum on the sum of NGN 88 billion from April 18, 2012, until judgment is delivered.
6. An order directing the defendants to refund any wrongful debits and pay the plaintiff accrued and unpaid dividends on the account and shareholding of Zenon Petroleum, as determined by an independent audit firm.
7. The plaintiff also requests the court to grant damages of NGN 800 million.
Wealth Accumulation Amidst Controversy
In April 2023, Mr. Otedola acquired 5.52% of shares (equivalent to about 2.245 billion shares) in Transcorp Plc, whose group chairman is Tony Elumelu, thereby becoming the largest single individual shareholder. This investment proved lucrative as Transcorp emerged as the most traded stock on the NGX with its share price rising by 68%, from ₦1.40 to ₦2.35 per share within a week after the acquisition, averaging roughly 10% daily.
With the ongoing controversy surrounding Zenith Bank, if Zenith Bank pays Mr. Otedola his accumulated dividends, he stands to become the second-highest shareholder of Zenith Bank, capitalizing with 5% of the bank. This saga has inadvertently increased the wealth of billionaire Femi Otedola due to strategic investments and actions taken against his partners, solidifying his prominent position among Nigeria’s billionaires.
With the ongoing controversy surrounding Zenith Bank, if Zenith Bank pays Mr. Otedola his accumulated dividends, he stands to become the second-highest shareholder of Zenith Bank, capitalizing with 5% of the bank. This saga has inadvertently increased the wealth of billionaire Femi Otedola due to strategic investments and actions taken against his partners, solidifying his prominent position among Nigeria’s billionaires.
Mr. Femi Otedola, one of Nigeria’s prominent billionaires, has accused Jim Ovia, Chairman of Zenith Bank, of engaging in fraudulent activities involving the bank account of his company, Seaforce Shipping Limited. Mr. Otedola has taken Zenith Bank Plc and Jim Ovia to the Federal High Court in Lagos over allegations of illegal and unauthorized charges to his account and the illegally and forcefully recovering his shares in Zenith Bank.
Build-Up to the Controversy
The friction between Mr. Otedola and Zenith Bank originated from claims of dishonest accounting in the calculation of his liabilities before the bank sold his multibillion-naira debt to the Asset Management Corporation of Nigeria (AMCON). Mr. Otedola, a top shareholder in Zenith Bank, allegedly borrowed over NGN 30 billion from the bank for a business deal. When the loan became overdue, the bank’s board sold his shares without notifying him. After Mr. Otedola repaid the loan, he discovered his shares had already been sold.
An anonymous tip has suggested that Jim Ovia, then the General Manager of Zenith Bank, wanted Dr. Dame Adaora, the current Group Managing Director (GMD), to succeed him. To ensure this, Ovia allegedly orchestrated the sale of Mr. Otedola’s shares, fearing that Otedola’s influence as a major shareholder could obstruct his plans. During this period, Ovia sacked four top General Managers of Zenith Bank. It is believed that one of these sacked General Managers acted as a whistleblower, alerting Mr. Otedola to the fraudulent transactions.
An anonymous tip has suggested that Jim Ovia, then the General Manager of Zenith Bank, wanted Dr. Dame Adaora, the current Group Managing Director (GMD), to succeed him. To ensure this, Ovia allegedly orchestrated the sale of Mr. Otedola’s shares, fearing that Otedola’s influence as a major shareholder could obstruct his plans. During this period, Ovia sacked four top General Managers of Zenith Bank. It is believed that one of these sacked General Managers acted as a whistleblower, alerting Mr. Otedola to the fraudulent transactions.
Unauthorized Transactions
Mr. Otedola alleges that Zenith Bank fabricated a loan of NGN 6 billion on Seaforce Shipping’s account, which he asserts never existed. This alleged fictitious loan, labeled as a “CP Facility,” was followed by a series of debits and credits, creating the illusion of financial activity. Account statements seen by Nairametrics showed significant debits, including NGN 6 billion on February 7, 2008, and NGN 4,475,326,935.25 on February 7, 2009.
TheCable reported that these transactions were conducted without Seaforce Shipping’s authorization or awareness. A major point of contention is the discrepancy in the reported debt amounts. In a letter dated March 19, 2018, Zenith Bank informed Seaforce Shipping’s auditors, Shofolawe-Bakare & Co., that the account had a debt of only NGN 2,278,420. However, the bank statement reviewed by Nairametrics indicated a closing balance of NGN -5,916,704,059.13, with total debits amounting to NGN 16,927,628,581.84 and total credits of NGN 11,010,924,522.71.
TheCable reported that these transactions were conducted without Seaforce Shipping’s authorization or awareness. A major point of contention is the discrepancy in the reported debt amounts. In a letter dated March 19, 2018, Zenith Bank informed Seaforce Shipping’s auditors, Shofolawe-Bakare & Co., that the account had a debt of only NGN 2,278,420. However, the bank statement reviewed by Nairametrics indicated a closing balance of NGN -5,916,704,059.13, with total debits amounting to NGN 16,927,628,581.84 and total credits of NGN 11,010,924,522.71.
Legal Actions and Investigations
In response to these revelations, Mr. Otedola has taken legal action. Seaforce Shipping, along with Zenon, Luzon Oil and Gas, Garment Care Limited, and Mr. Otedola himself, has secured a Federal High Court injunction against Zenith Bank, Quantum Zenith Securities and Investment, Veritas Registrars, and the Central Securities Clearing System. This injunction prevents these entities from trading shares or paying dividends until a motion for an interlocutory injunction is heard.
Zenith Bank declared a dividend of NGN 3.5 per share on April 8, 2024, and made payments a month later. This injunction remains in effect until the hearing of the motion on notice for an interlocutory injunction. Additionally, the Force Criminal Investigation Department (FCID) of the police is investigating the allegations, with senior officials of Zenith Bank already questioned as part of the ongoing probe.
Zenith Bank declared a dividend of NGN 3.5 per share on April 8, 2024, and made payments a month later. This injunction remains in effect until the hearing of the motion on notice for an interlocutory injunction. Additionally, the Force Criminal Investigation Department (FCID) of the police is investigating the allegations, with senior officials of Zenith Bank already questioned as part of the ongoing probe.
Claims
In suit No: FHC/L/CS/425/24 dated March 6, 2024, where Zenith Bank, Quantum Zenith Securities, Veritas Registrars, and Central Securities Clearing System are joined as defendants, Mr. Otedola is seeking the court’s relief to make the following orders:
1. An order directing Zenith Bank Plc to refund the sum of NGN 205,346,573 wrongfully debited on January 27, 2011, from the account of Zenon Petroleum Limited, plus accrued interest.
2. An order directing Zenith Bank to release, return, and credit Zenon Petroleum Limited with 1,300,000,000 shares of Zenith Bank, which were illegally taken in 2011.
3. An order of perpetual injunction restraining Zenith Bank and other defendants from further withholding, selling, transferring, trading, and registering the shares of Zenon Petroleum Limited.
4. An order directing the defendants to jointly and severally pay NGN 88 billion in unpaid dividends accrued on the shares of Zenon Petroleum Limited, illegally recovered by Zenith Bank from 2011 to date.
5. An order directing the defendants to pay accrued interest at the rate of 10 percent per annum on the sum of NGN 88 billion from April 18, 2012, until judgment is delivered.
6. An order directing the defendants to refund any wrongful debits and pay the plaintiff accrued and unpaid dividends on the account and shareholding of Zenon Petroleum, as determined by an independent audit firm.
7. The plaintiff also requests the court to grant damages of NGN 800 million.
1. An order directing Zenith Bank Plc to refund the sum of NGN 205,346,573 wrongfully debited on January 27, 2011, from the account of Zenon Petroleum Limited, plus accrued interest.
2. An order directing Zenith Bank to release, return, and credit Zenon Petroleum Limited with 1,300,000,000 shares of Zenith Bank, which were illegally taken in 2011.
3. An order of perpetual injunction restraining Zenith Bank and other defendants from further withholding, selling, transferring, trading, and registering the shares of Zenon Petroleum Limited.
4. An order directing the defendants to jointly and severally pay NGN 88 billion in unpaid dividends accrued on the shares of Zenon Petroleum Limited, illegally recovered by Zenith Bank from 2011 to date.
5. An order directing the defendants to pay accrued interest at the rate of 10 percent per annum on the sum of NGN 88 billion from April 18, 2012, until judgment is delivered.
6. An order directing the defendants to refund any wrongful debits and pay the plaintiff accrued and unpaid dividends on the account and shareholding of Zenon Petroleum, as determined by an independent audit firm.
7. The plaintiff also requests the court to grant damages of NGN 800 million.
Wealth Accumulation Amidst Controversy
In April 2023, Mr. Otedola acquired 5.52% of shares (equivalent to about 2.245 billion shares) in Transcorp Plc, whose group chairman is Tony Elumelu, thereby becoming the largest single individual shareholder. This investment proved lucrative as Transcorp emerged as the most traded stock on the NGX with its share price rising by 68%, from ₦1.40 to ₦2.35 per share within a week after the acquisition, averaging roughly 10% daily.
With the ongoing controversy surrounding Zenith Bank, if Zenith Bank pays Mr. Otedola his accumulated dividends, he stands to become the second-highest shareholder of Zenith Bank, capitalizing with 5% of the bank. This saga has inadvertently increased the wealth of billionaire Femi Otedola due to strategic investments and actions taken against his partners, solidifying his prominent position among Nigeria’s billionaires.
With the ongoing controversy surrounding Zenith Bank, if Zenith Bank pays Mr. Otedola his accumulated dividends, he stands to become the second-highest shareholder of Zenith Bank, capitalizing with 5% of the bank. This saga has inadvertently increased the wealth of billionaire Femi Otedola due to strategic investments and actions taken against his partners, solidifying his prominent position among Nigeria’s billionaires.
