The conflict between billionaire Femi Otedola and Jim Ovia, chairman of Zenith Bank, has intensified over allegations of a multibillion-naira fraud.
Otedola has accused Zenith Bank of using his company Seaforce Shipping Limited’s account for trading activities in 2011 without his consent or knowledge.
These serious allegations are currently being investigated by the Force Criminal Investigation Department (FCID) of the police, although there are ongoing efforts to resolve the issue amicably.
Jim Ovia and Zenith Bank have yet to issue a comment regarding the accusations. Otedola claims that Seaforce Shipping’s account, which had been inactive since 2010, was used for unauthorized trading.
He asserts that Seaforce never applied for or received any loans from Zenith Bank, yet billions of naira were traded on the account without his authorization.
When asked to provide documentation, such as offer letters for the alleged loans, Zenith Bank reportedly failed to comply. Otedola discovered the suspicious activities only recently, 13 years after they occurred, following a tip-off from a whistleblower within the bank. Upon confronting Zenith Bank officials, Otedola reports that they apologized.
Otedola provided a letter dated March 19, 2018, from Zenith Bank to Seaforce’s auditors, indicating a debt of N2,278,420. This figure starkly contrasted with the N5 billion recorded in the bank statement seen by TheCable.
On the date the letter was issued, the bank statement actually showed a debt of N2.9 billion, significantly different from the N2 million stated in the letter, which was signed by Taofik Bashir (internal audit control) and Edwin Kind Olie (group head, telecom).
Over N16 billion in transactions were recorded against Seaforce’s account from 2011 to 2024. Otedola questioned who made the payments that reduced the debt from N16.9 billion to N11 billion, as he was unaware of these transactions.
Several large credits were recorded on the account in 2011, including N77 million on April 18, N119 million on December 1, N316 million on December 8, N266 million on December 15, and N444 million on December 12. Consequently, Seaforce now has a debt of N5.9 billion, primarily due to interest charges.
A senior official from Zenith Bank has already been questioned by the police. Meanwhile, Otedola’s companies—Zenon, Seaforce, Luzon Oil and Gas, and Garment Care Limited—have obtained a federal high court injunction against Zenith Bank, Quantum Zenith Securities and Investment, Veritas Registrar, and Central Securities Clearing System.
This injunction prevents these entities from trading shares or paying dividends until the hearing of the motion on notice for an interlocutory injunction.
