Femi Otedola accuses Zenith Bank of N5 billion fraud

In the Nigerian financial sector, prominent billionaire Femi Otedola has accused Zenith Bank, especially its chairman Jim Ovia, of fraudulent activities involving his company, Seaforce Shipping Limited. These allegations are currently being investigated by the agency Forced Criminal Investigation Department (FCID), claiming illegal trading activities resulted in debts of over 5 billion Naira.

Otedola, who is also the president of FBN Holdings Group and CEO of Geregu Electric Company Limited, asserted that his company account was used for trading in 2011 without his knowledge or consent. The accusation comes during a period of financial recovery for Otedola, whose net worth has increased to $1.7 billion after previous turmoil.

The allegations include the unauthorized withdrawal of N205,346,573 from Seaforce’s account in 2011, a loan worth 5 billion Naira which Otedola claimed 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 auditors, which stated a debt of only N2,278,420 on the same account, as opposed to the N5 billion recorded in the bank statement obtained by TheCable.

In response to these allegations, Seaforce Shipping Company Limitedalong with Zenon, Luzon Oil and Gas, Garment Care LLCand Otedola himself received a federal high court injunction against it Zenith Bank, Zenith Quantum Securities and Investments, Veritas RegistrarAnd Central securities clearing system. The order prevents the defendants from trading in shares or paying dividends until a request for an interim order is heard.

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 potential ramifications of these serious allegations.

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