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Otedola threatens to sue Zenith Bank over alleged account debt
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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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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Final Notice: FG Orders Civil Servants to Complete PASGA Verification by March 31
Final Notice: FG Orders Civil Servants to Complete PASGA Verification by March 31
The Federal Government of Nigeria has set Tuesday, March 31, 2026, as the final deadline for civil servants to complete the mandatory Personnel Audit and Skills Gap Analysis (PASGA) verification exercise. Workers who fail to comply risk salary suspension and other administrative sanctions, officials warned.
The directive, issued by the Head of the Civil Service of the Federation (OHCSF), Didi Walson-Jack, applies to all employees within the Federal Civil Service. The memo emphasised that the verification process is part of the government’s ongoing effort to eliminate ghost workers, enhance workforce accountability, and improve efficiency in public service operations.
The PASGA exercise consists of two components: Personnel Verification and Skill Assessment and Competency Analysis. Civil servants who have not completed either component are required to do so by March 31, 2026, to obtain their Certificates of Completion. These certificates must then be submitted to the Director of Human Resource Management in their respective Ministries, Departments, and Agencies (MDAs).
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The OHCSF warned that any officer who fails to comply will be subject to “appropriate administrative sanctions in line with extant rules and regulations,” which may include suspension from the payroll until compliance. Permanent Secretaries and Heads of MDAs have been instructed to circulate the memo widely to ensure that all affected officers are informed.
The PASGA exercise, rolled out in 2025, is designed to assess staffing structures, identify skill gaps, and support the development of targeted training and capacity-building programmes aligned with national priorities. Its outcomes will also guide government decisions on recruitment, career advancement, and resource allocation within the Federal Civil Service.
Officials say the verification process is essential to address longstanding issues such as payroll irregularities and fraudulent entries, which have historically cost billions of naira annually. Completion of the exercise will protect civil servants’ rights to salary and benefits while strengthening the integrity of Nigeria’s public service system.
Civil servants have been urged to prioritise the exercise to avoid disruptions to their pay and career progression. Authorities stressed that while compliance with local laws is expected, all government procedures must follow due process and fairness to ensure that legitimate workers are not unfairly penalised.
Final Notice: FG Orders Civil Servants to Complete PASGA Verification by March 31
News
Kano Deputy Governor, Aminu Abdussalam Gwarzo, Resigns
Kano Deputy Governor, Aminu Abdussalam Gwarzo, Resigns
The Deputy Governor of Kano State, Aminu Abdussalam Gwarzo, has resigned from office, bringing a sudden twist to the state’s evolving political landscape.
His spokesperson, Ibrahim Shuaibu, confirmed the development on Friday, stating that the resignation had been formally communicated.
“Yes, it is true. The deputy governor has resigned from his position,” Shuaibu said, declining to provide further details surrounding the decision.
Although no official reason has been disclosed, the resignation comes amid escalating tensions between Gwarzo and the Kano State House of Assembly.
In recent days, the Assembly had levelled a series of allegations against the former deputy governor, including claims of misconduct and concerns related to the discharge of his official duties. Lawmakers were also reported to have initiated moves widely seen as a precursor to possible disciplinary action, raising fears of an impending political crisis within the state executive.
The development also follows recent political shifts in Kano, particularly the defection of Governor Abba Yusuf to the All Progressives Congress, a move that has triggered significant realignments within the state’s political structure.
Since the defection, the governor has undertaken sweeping changes aimed at repositioning the administration. These include the removal of the Head of Service, Abdullahi Musa, as well as the dismissal of the Commissioner for Investment, Commerce and Industry, Shehu Wada Sagagi, as part of broader efforts to enhance efficiency and discipline in governance.
Political observers interpret these actions as part of a strategic move by the administration to consolidate power within the new political alignment and streamline government operations in line with evolving priorities.
While details of the allegations against Gwarzo remain unclear, sources within the Assembly indicated that the matter had been under legislative scrutiny prior to his resignation.
Efforts to obtain further clarification from the Kano State Government were unsuccessful as of the time of filing this report.
Gwarzo’s exit is expected to trigger constitutional procedures for the appointment of a new deputy governor, subject to approval by the State House of Assembly.
Analysts believe the development could further reshape Kano’s political landscape, particularly as the state navigates ongoing alignments ahead of future electoral contests.
Kano Deputy Governor, Aminu Abdussalam Gwarzo, Resigns
News
ADC Primary: Atiku Will Defeat Obi, Amaechi — Umar Ardo
ADC Primary: Atiku Will Defeat Obi, Amaechi — Umar Ardo
Umar Ardo, Convener of the League of Northern Democrats, has declared that former Vice President Atiku Abubakar would emerge victorious in the presidential primary of the African Democratic Congress (ADC) if he decides to contest.
Ardo made the assertion on Friday while speaking during a programme on Focus Nigeria, aired on the African Independent Television (AIT), where he analysed possible scenarios ahead of the party’s primary election.
According to him, although discussions around a consensus candidate may arise within the party, such an arrangement would require key contenders, including Peter Obi and Rotimi Amaechi, to step down — a situation he described as unlikely.
He noted that consensus would only be feasible if major aspirants willingly relinquish their ambitions in favour of a single candidate, stressing that this could prove difficult given the political realities and support bases of those involved.
“If there is going to be consensus, it means that the contenders will have to step down. It would mean that Atiku, Peter Obi, Amaechi, and others would have to step down for somebody,” Ardo said.
He further observed that while Obi might be personally inclined to step down under certain circumstances, his loyal supporters, popularly known as the Obidient Movement, would strongly resist such a move.
Ardo also expressed the view that although Atiku’s supporters might accept a consensus arrangement, the former vice president himself is unlikely to withdraw from the race.
“Peter Obi has the disposition to step down, but his support base would oppose that. Without the Obidients, Obi is nothing. Atiku’s support base may allow him to step down, but he himself is not likely to do so,” he stated.
The northern political figure maintained that if all aspirants proceed to contest the primary election, Atiku stands a clear chance of clinching the party’s ticket, regardless of whether the process is conducted through direct primaries or by delegates.
“If all of them go into the primaries, then Atiku will win — be it by delegates or direct primaries. Atiku will 100 percent win the primaries, even if they are conducted multiple times,” Ardo added.
His remarks come amid ongoing political realignments and speculations over potential alliances and candidacies ahead of future elections, with key political actors weighing their options within and across party lines.
The African Democratic Congress has yet to officially outline its timetable for the primary election, as consultations among stakeholders continue.
ADC Primary: Atiku Will Defeat Obi, Amaechi — Umar Ardo
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