Otedola threatens to sue Zenith Bank over alleged account debt - Newstrends
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Otedola threatens to sue Zenith Bank over alleged account debt

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Femi Otedola

Otedola threatens to sue Zenith Bank over alleged account debt

Femi Otedola, the chair of FBN Holdings and majority owner of Geregu Power, and some of his companies are up in arms against Zenith Bank over a controversial debt involving his former company, Zenon Petroleum & Gas and some other firms in which he has interests.

Mr Otedola is accusing Zenith Bank of perpetrating banking fraud against him and some of his companies. He claims the lender controversially disposed of his shares in the bank, manipulated the company’s bank accounts, and forged documents to cover up the alleged crimes.

The businessman has also triggered litigation and police action against Zenith Bank, with the Force Criminal Investigation Department now probing the matter.

The battle between Mr Otedola and Zenith Bank began after the businessman accused his bankers of dishonest accounting in the computation of his liabilities before selling his multibillion naira debt to the Asset Management Corporation of Nigeria (AMCON), an agency of the Nigerian Government, buys bad loans in banks’ books, aiming to pursue recovery afterwards.

Reliable sources with knowledge of the matter told PREMIUM TIMES that the billionaire tycoon turned to the court and the police for a resolution after the dispute became knottier, and efforts to resolve it and other related issues without legal intervention failed.

PREMIUM TIMES learnt that the technical teams of Zenith Bank and Zenon Oil met on 20 May 2024 to resolve the logjam, but the meeting was inconclusive.

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Zenon Oil did not find the deliberations of another meeting held a day after at Lagos Oriental Hotel satisfactory and has threatened to launch a fresh legal action against the bank.

That was the third reconciliation meeting the two parties held this month, none of which has resolved the conflict.

“It is clear that Zenith Bank Plc is not sincere in resolving this issue out of court and as such a time-wasting exercise,” one of our sources said. “At this juncture, we have resolved to pursue our claims via the judiciary, law enforcement, the CBN and the court of public opinion as we know that our claims are very genuine.”

Zenon claimed its letters of credit that deteriorated into the problematic loan acquired by AMCON were opened before the corporation bought the debt in December 2011. Zenon ceased to operate the account the moment the takeover happened.

Zenon claimed Zenith Bank admitted at meetings that it controversially opened letters of credit after AMCON procured the debt, a practice an official of the oil and gas firm described as unprofessional.

A document seen by PREMIUM TIMES listed the overdue amount on Zenon’s account at the time of AMCON’s intervention as N39 billion. However, Zenon claims Zenith Bank offered the debt to AMCON for N49 billion instead. After intense negotiations, AMCON paid the bank N44.1 billion for the bad debt.

Sunday Enebeli-Uzor, who heads the bank’s corporate communications unit, did not immediately respond to PREMIUM TIMES’ request for comment. Neither did Ayoola Kusimo, the team lead for media relations.

But a top bank official had earlier told one of our reporters that since the matter is already in court and before the police, there was no need discussing it in the media.

When contacted, Mr Otedola confirmed his face-off with Zenith Bank over some unclear transactions on his companies’ accounts but declined to provide details. “We are still trying to resolve it,” he said. “If that fails, I can give you details.”

Another document containing the details of a meeting held by both sides on 20 May said Zenith Bank agreed to refund with compounded accrued interest rate the N205 million it wrongly deducted from Zenon’s account using a backdraft.

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Seaforce Shipping Company Limited, owned by Mr Otedola, disclosed that Zenith Bank presented some bank statements claiming that Seaforce owed the lender N5.9 billion as of February 2024. The company added that Zenith Bank later abandoned the claim after it showed the bank proof that Seaforce’s account was in credit as of 2018.

According to a company document obtained by PREMIUM TIMES, Seaforce reviewed a bank statement of the company Zenith Bank shared with it and established that no facility existed.

“This is clearly a fraud as it is evident that they prepared fake bank statements,” Seaforce said.

This March, Zenon, Seaforce, Luzon Oil & Gas, Garment Care Limited, and Mr Otedola obtained an injunction against Zenith Bank, Quantum Zenith Securities and Investment, Veritas Registrar, and Central Securities Clearing System.

The interim injunctions forbade the defendants, their agents, and their servants from trading with the plaintiffs’ shares or paying dividends on them until the hearing of the motion on notice for interlocutory injunction already filed before the court, the Federal High Court Lagos.

According to the insider, Zenith Bank sold the 415 million shares Zenon held in the bank for N4.9 billion in December 2010. The shares were repurchased by Zenith Bank in January 2011 for N5.4 billion, resulting in a net loss of N142.9 million.

The source said similar transactions were carried out on Mr Otedola’s account, with a net loss of N61.5 million recorded in that case, resulting in a cumulative loss of N205.4 million.

The insider said the amount was debited to Zenon’s main account on 27 January 2011. He claimed Zenith Bank admitted to trading on the account and agreed to reverse the debit and pay the accumulated interest to date. PREMIUM TIMES has not been able to verify the claim independently.

Police steps in, summons Zenith Bank

The police have stepped into the matter based on a petition by Mr Otedola and his companies. On 16 May, Isyaku Mohammed, the commissioner of police in charge of administration at the Force Criminal Investigation Department, summoned the managing director of Zenith Bank over what he described as an alleged unauthorised debit to Zenon’s account.

“This office is investigating an alleged case of fraudulent misrepresentation, wrongful debit and unauthorised transactions referred from the assistant inspector general of police, FCID Annex, Alagbon Close, Ikoyi, Lagos, involving your financial institution,” the letter, a copy of which was obtained by PREMIUM TIMES, read.

“A precis of the petition at disposal reveals that sometime in 2011, an unauthorised withdrawal was carried out on the account of Zenon Petroleum Gas Limited with number 10110385211 to the tune of Two Hundred and Five Million, Three Hundred and Forty-six Thousand, Five Hundred and Seventy-Three Naira (N205,346,573.00) without justification.”

The letter also stated that several letters of credit were unlawfully opened by Zenith Bank after the takeover of Zenon by AMCON in 2011, leading to some unsolicited loan disbursement that further plunged the company into indebtedness.

The summon requested Zenith Bank’s managing director to report to the Force Criminal Investigations Department Annex, Alagbon Close, Ikoyi, Lagos, on Monday, 20 May 2024, for questioning.

It is unclear whether the bank chief has honoured the invitation, but those familiar with the matter said some bank legal department officials have met with the police in recent weeks.

Otedola threatens to sue Zenith Bank over alleged account debt

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US Senator Ted Cruz Alleges Nigerian Officials Behind Christian Killings

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US Senator Ted Cruz
US Senator Ted Cruz

US Senator Ted Cruz Alleges Nigerian Officials Behind Christian Killings

United States Senator Ted Cruz has alleged that some Nigerian officials are complicit in attacks on Christians, warning that the United States could impose sanctions on those found responsible.

Cruz made the claim while reacting to the recent Plateau killings, particularly the deadly attack in Jos North area of Plateau State.

In a post on X, the lawmaker stated that American authorities are aware of those allegedly enabling the violence. He accused certain officials of creating an environment where Christians are “routinely persecuted and slaughtered,” adding that the U.S. has the tools to hold such individuals accountable.

The remarks followed a Palm Sunday attack on Angwan Rukuba, where gunmen invaded the community around 8:30 p.m., killing at least 12 people. Police confirmed the victims included 10 men and two women, with additional bodies later recovered during search operations.

The timing of the attack, coinciding with a major Christian observance, has heightened concerns about religious violence in Nigeria, particularly in the Middle Belt region.

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Governor Caleb Mutfwang visited the affected community, expressing sympathy to victims’ families and vowing justice.

“Your pain is my pain, and the pain of Plateau State. My administration will pursue justice relentlessly until the perpetrators are brought to book,” he said.

The state government also announced emergency measures, including free medical treatment for the injured and dignified burials for the deceased.

To prevent further breakdown of law and order, authorities imposed a 48-hour curfew in Jos North, which lasted from midnight March 29 to April 1, 2026. Security presence was also reinforced, with additional personnel deployed to stabilise the area.

Security agencies have since intensified operations to track down those responsible for the attack, while residents remain on edge.

Cruz’s comments have reignited international scrutiny over Nigeria’s security situation, especially recurring violence in the Middle Belt.

However, the Federal Government of Nigeria has consistently rejected claims of targeted religious persecution, maintaining that the violence is driven by criminality, insurgency, and communal conflicts rather than a coordinated campaign against Christians.

President Bola Tinubu has also dismissed allegations of religious genocide, stating that Nigeria’s challenges stem from terrorism and extremism, not faith-based targeting.

Similarly, National Security Adviser Nuhu Ribadu has engaged with U.S. officials in past diplomatic efforts to clarify the country’s security realities.

Despite these assurances, incidents like the Plateau attack continue to raise both local and global concerns, with growing calls for stronger action to curb violence and ensure accountability.

US Senator Ted Cruz Alleges Nigerian Officials Behind Christian Killings

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Senate Passes ₦68.32trn 2026 Budget, Increases Tinubu’s Proposal

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President Bola Ahmed Tinubu present budget

Senate Passes ₦68.32trn 2026 Budget, Increases Tinubu’s Proposal

The Senate on Tuesday passed Nigeria’s ₦68.32 trillion 2026 Appropriation Bill, marking a sharp increase from the ₦58.47 trillion initially presented by Bola Ahmed Tinubu in December 2025.

The upper chamber approved the revised figure following a formal request by the President, who sought an upward review of the budget to reflect additional fiscal realities, legacy obligations, and priority national projects.

The spending plan, themed “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” is aimed at sustaining macroeconomic reforms, boosting economic growth, job creation, and poverty reduction, while strengthening social protection for vulnerable Nigerians.

The approved total of ₦68,323,309,818,667 includes ₦4.8 trillion for statutory transfers, ₦15.81 trillion for debt servicing, ₦15.43 trillion for recurrent expenditure, and ₦32.29 trillion for capital expenditure, with the capital component taking the largest share to drive infrastructure and development.

A major driver of the increase is the inclusion of about ₦7.71 trillion to settle outstanding capital projects rolled over from the 2025 fiscal year, alongside an additional ₦2 trillion earmarked for new priority interventions across sectors. Lawmakers noted that a significant number of 2025 projects could not be completed due to revenue constraints, necessitating their rollover.

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The Senate also approved key strategic interventions, including ₦478.6 billion as equity contribution for presidential legacy rail projects in Lagos, Kano, Kaduna, and Ogun states, as well as feasibility studies for urban rail systems in Enugu and Maiduguri. It further cleared ₦8.96 billion for feasibility studies covering the Calabar–Maiduguri corridor and the Maiduguri–Sokoto superhighway, underscoring a renewed focus on nationwide connectivity.

In the health sector, the budget provides ₦482.76 billion for critical interventions tied to Nigeria’s bilateral and multilateral commitments, while the judiciary received significant allocations. These include ₦98.5 billion for the Court of Appeal, ₦36.7 billion for the Supreme Court, and ₦268.54 billion to strengthen judicial capacity, particularly ahead of the 2027 general elections.

On the revenue side, the fiscal framework is supported by an upward adjustment of the oil benchmark, projected to generate an additional ₦2.59 trillion, alongside increased non-oil revenue expectations. Lawmakers highlighted improved performance in the telecommunications sector, projecting about ₦724 billion in company income tax from MTN Nigeria and ₦150 billion from Airtel Nigeria.

To finance the deficit, the government proposed additional borrowings of about ₦6.16 trillion, reflecting ongoing reliance on debt to support budget expansion amid revenue limitations.

The bill underwent extensive legislative scrutiny, including committee reviews, engagements with the President’s economic team, and a public hearing involving Ministries, Departments and Agencies (MDAs), civil society organisations, and other stakeholders.

The Senate Committee on Appropriations explained that the adjustments were necessary to “regularise outstanding legacy capital commitments” and prevent the 2026 budget from being weighed down by unresolved obligations. It also noted that nearly 70 per cent of capital projects were rolled over due to revenue shortfalls in 2025.

Lawmakers expressed concerns over delays in fund releases during the previous fiscal year and warned against bureaucratic bottlenecks that could hinder implementation. They called for stronger coordination between the executive and legislature, alongside strict oversight to ensure that budgetary allocations translate into tangible development outcomes.

In a related resolution, the Senate approved the extension of the 2025 Appropriation Act implementation period to June 30, 2026, to allow completion of ongoing projects.

Speaking after the passage, Senate President Godswill Akpabio said the revised budget would ensure adequate funding for critical sectors and accelerate national development. He added that the harmonised work between both chambers eliminated the need for a conference committee and expressed optimism that increased revenue—particularly from ongoing tax reforms—would support effective implementation.

The passage of the 2026 budget signals the Federal Government’s continued push to balance economic reforms, infrastructure expansion, and social investment, even as concerns persist over rising debt levels and fiscal sustainability.

Senate Passes ₦68.32trn 2026 Budget, Increases Tinubu’s Proposal

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Senate approves Tinubu’s $6bn loan request

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Senate plenary

Senate approves Tinubu’s $6bn loan request

The Senate on Tuesday approved President Bola Ahmed Tinubu’s request to secure external loans totalling $6bn to finance key infrastructure projects and support budget implementation.

The approval followed the consideration of a report presented by the Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wamakko, shortly after the President’s request was read on the floor by Senate President Godswill Akpabio.

The loan request was transmitted to the upper chamber in two separate letters. In the first, the President sought approval to obtain up to $5bn through a structured financing arrangement with First Abu Dhabi Bank to address funding gaps in the 2026 budget, meet existing financial obligations, and support priority projects.

In the second request, Tinubu asked the Senate to approve a $1bn loan facility backed by UK Export Finance and arranged by Citibank, London, for the rehabilitation of the Lagos Port Complex and Tin Can Island Port.

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According to the President, the port rehabilitation projects are expected to enhance operational efficiency, improve safety standards, and strengthen Nigeria’s competitiveness as a regional maritime hub.

Presenting the committee’s report, Wamakko said the proposed loans were in line with existing laws and necessary to fund critical infrastructure and stimulate economic growth.

The Senate subsequently approved the requests after deliberations, signalling legislative backing for the Federal Government’s plan to bridge fiscal deficits through external borrowing.

The approval underscores the government’s continued reliance on foreign loans to support development projects amid mounting fiscal pressures.

Senate approves Tinubu’s $6bn loan request

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