Billionaire businessman Femi Otedola and Jim Ovia, chairman of Zenith Bank, are embroiled in an intensifying dispute over alleged financial irregularities, as reported exclusively by TheCable on June 5, 2024.
Otedola has accused Zenith Bank of illicitly utilizing the account of his firm, Seaforce Shipping Limited, for trading activities in 2011 without his authorization. The Force Criminal Investigation Department (FCID) is currently investigating these allegations, while efforts are underway to resolve the matter amicably.
TheCable reports that Seaforce Shipping’s account, despite being inactive since 2010, continued to be used for trading without Otedola’s knowledge, as stated in his police petition.
Despite Seaforce never applying for or receiving a loan from Zenith Bank, unauthorized trading amounting to billions of naira occurred on the account. The bank reportedly failed to provide supporting documentation, including loan offer letters, when requested.
Otedola recently uncovered these suspicious transactions after being alerted by a whistleblower within Zenith Bank. TheCable has learned that Otedola confronted Zenith Bank officials, who subsequently apologized.
Otedola has presented a letter from Zenith Bank dated March 19, 2018, addressed to Seaforce’s auditors, Shofolawe-Bakare & Co., indicating a debt of only N2,278,420 on the account. However, a bank statement obtained by TheCable shows a debt of N5 billion.
Additionally, transactions totaling over N16 billion were recorded against Seaforce’s account from 2011 to 2024. Otedola has questioned the source of payments that reduced the alleged debt from N16.9 billion to N11 billion, as he was unaware of these transactions.
Seaforce currently owes N5.9 billion, primarily due to interest charges. A senior bank official has been questioned by the police.
Meanwhile, Zenon, Seaforce, Luzon Oil and Gas, Garment Care Limited, and Otedola have obtained a federal high court injunction restraining Zenith Bank, Quantum Zenith Securities and Investment, Veritas Registrar, and Central Securities Clearing System from trading or paying dividends on their shares. This injunction remains in effect until the hearing of the motion for interlocutory injunction.
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