In the Nigerian financial sector, prominent 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 being investigated by Criminal Investigation Department (FCID), claims illegal trading activities resulted in a debt of over 5 billion Naira.
Otedola, who is also the chairman of FBN Joint Stock Company and CEO of Geregu Electric Company Limitedalleges that his company’s account was used to trade in 2011 without his knowledge or consent. The accusation comes amid a period of financial recovery for Otedola, whose net worth has risen to $1.7 billion after previous turmoil.
The allegations include the unauthorized withdrawal of 205,346,573 Naira from Seaforce’s account in 2011, a 5 billion Naira loan which Otedola claims was neither applied for nor received, and discrepancies in account statements provided by Zenith Bank. Otedola presented a letter dated March 19, 2018, from Zenith Bank to Seaforce’s auditors, which stated a debt of only 2,278,420 Naira on the same account, contrary to the 5 billion Naira amount stated in the bank statements obtained by TheCable.
In response to these allegations, Seaforce Shipping Company Limitedtogether with Zenon, Luzon Oil and Gas, Garment Care Company Limitedand Otedola himself secured a federal court injunction against Zenith Bank, Quantum Zenith Securities and Investment, Veritas RegistrarAnd Central Securities Clearing System. This order prohibits the defendant from trading in the shares or paying dividends until an application for an interim injunction is made.
The scandal has highlighted issues surrounding the operations of one of Nigeria’s leading banks and broader concerns about corporate governance and financial transparency in the country’s banking sector. As the investigation continues, the financial community and the public await further details and the potential consequences of these serious allegations.
