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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
Premium Times
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Senior Lawyers Drag NYSC to Court Over Deployment of Corps Members to Insecure States
Senior Lawyers Drag NYSC to Court Over Deployment of Corps Members to Insecure States
WARRI — Two prominent legal practitioners, Olukunle Ogheneovo Edun (SAN) and John Aikpokpo-Martins, have instituted a Fundamental Rights Enforcement action before the High Court of Delta State, Warri Judicial Division, challenging the continued deployment of National Youth Service Corps (NYSC) members to states and communities affected by severe insecurity across Nigeria.
The suit seeks judicial intervention against what the applicants describe as the persistent posting of corps members to areas plagued by terrorism, banditry, kidnapping, armed attacks and other forms of violent criminality, despite widespread concerns over the safety of young graduates participating in the national service scheme.
According to the applicants, the deployment of corps members to locations where lives are constantly under threat amounts to a violation of their constitutionally guaranteed rights to life, dignity of the human person, personal liberty and security.
The legal action comes amid growing public anxiety over the security of NYSC members, following several incidents in recent years involving the abduction, harassment and killing of corps members in different parts of the country.
Edun, a Senior Advocate of Nigeria, and Aikpokpo-Martins contend that the authorities responsible for administering the NYSC scheme have a legal and constitutional duty to protect participants from foreseeable dangers. They argue that compelling or assigning corps members to regions with known security challenges exposes them to unnecessary risks and undermines the government’s obligation to safeguard citizens.
The applicants are asking the court to determine whether the continued deployment of corps members to areas designated as security flashpoints is compatible with the provisions of the 1999 Constitution (as amended) and Nigeria’s obligations under relevant human rights instruments.
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They are also seeking orders that would compel the NYSC and other relevant government agencies to review and reform deployment policies in a manner that prioritises the safety and welfare of corps members.
Observers say the case could have far-reaching implications for the future of the NYSC scheme if the court rules in favour of the applicants. A favourable judgment may require the scheme to establish stricter security benchmarks before deploying corps members and could potentially limit postings to locations considered unsafe.
The lawsuit has already generated significant interest among stakeholders, including parents, civil society organisations and youth groups, many of whom have repeatedly raised concerns about the safety of participants in the mandatory one-year national service programme.
Security experts have also argued that the increasing wave of insecurity in parts of the country necessitates a review of policies affecting young Nigerians serving under the NYSC scheme.
As of the time of filing this report, neither the NYSC Directorate Headquarters nor relevant federal authorities had issued an official response to the suit.
The case is expected to test the extent of the government’s constitutional responsibility to protect corps members and may shape future policies regarding the deployment of young graduates under the nation’s compulsory service programme.
Senior Lawyers Drag NYSC to Court Over Deployment of Corps Members to Insecure States
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Obi Promises to Release Nnamdi Kanu if Elected, Says ‘He Has Done Nothing Wrong’
Obi Promises to Release Nnamdi Kanu if Elected, Says ‘He Has Done Nothing Wrong’
The 2027 presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has declared that he would release Nnamdi Kanu and engage separatist agitators in dialogue if elected president of Nigeria. Speaking during an interaction with Nigerians in Washington, the former Anambra State governor argued that Kanu should not be detained over comments he allegedly made on Radio Biafra, insisting that criticism of political leaders should not be criminalised.
“There’s no reason for keeping Nnamdi Kanu. I will free Nnamdi Kanu as President. He has done nothing wrong; the government has no reason to arrest him because he was speaking and calling people names on radio,” Obi said. The former Labour Party presidential candidate maintained that public officials are often subjected to criticism and insults, which, according to him, should not constitute an offence. “Anybody can tell you anything. I’m a politician and people call me all sorts of names and I don’t think calling me names is an offence,” he added. Obi also pledged to adopt dialogue as a strategy for addressing separatist agitations and other grievances across the country. “If I am in government today, I will discuss with all agitators because I believe that they have a reason for whatever they want to do and it’s only by engaging them that we would learn,” he said.
Obi reiterated his commitment to pursuing a political solution to the case involving the Indigenous People of Biafra (IPOB) leader, stating that dialogue remains the most effective path to resolving longstanding grievances and tensions. According to him, governments achieve more lasting results when they address the root causes of agitations through dialogue, justice, and inclusive governance rather than relying solely on coercive measures. The former governor maintained that national unity is better strengthened through reconciliation and mutual understanding, stressing that democratic societies should create avenues for citizens to express grievances while preserving law, order, and national stability.
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This is not the first time Obi has spoken on the IPOB leader’s detention. In November 2025, following Kanu’s conviction and life imprisonment sentencing by a Federal High Court in Abuja, Obi described the development as a “failure of leadership” that risked aggravating national tension. At the time, Obi posted on his verified X handle: “I have always maintained that Mazi Kanu should never have been arrested. For years, I have consistently argued that dialogue, constructive engagement, and inclusive governance offer the path to lasting peace. Coercion becomes necessary only when reason has been exhausted.” He further argued that the government’s approach had only deepened mistrust, stating: “The handling of Kanu’s case mirrors the government as a man trapped in a hole but who, instead of looking for a way out, keeps digging deeper.” In July 2025, Obi had told Channels Television’s Sunday Politics that the continuous detention of Nnamdi Kanu “does not make sense” . Asked whether he would advocate for a political solution, Obi responded: “For every one of them, I mean, why is he still being held? It does not make sense to me.”
Nnamdi Kanu, the leader of IPOB, has remained in the custody of the Department of State Services since his controversial rendition from Kenya to Nigeria in June 2021. In November 2025, Justice James Omotosho of the Federal High Court in Abuja convicted him on seven terrorism-related charges and sentenced him to life imprisonment. Kanu has since filed an appeal at the Court of Appeal challenging both his conviction and sentence. According to his legal consultant, Alloy Ejimakor, the appeal process is already “live,” with multiple stages involved. Kanu has provided 22 grounds for his appeal, and the Court of Appeal has not yet fixed a date for hearing the matter. In a significant development, IPOB claimed in June 2026 that the Federal Government’s cross-appeal against Kanu’s sentencing amounts to an admission that the trial court lacked jurisdiction to impose life sentences. IPOB spokesperson Emma Powerful stated that the government’s filing declared that “the trial court acted without jurisdiction when it imposed life imprisonment on Counts 1, 2, 4, 5 and 6.” IPOB argued that if the court lacked jurisdiction at the sentencing phase, “the entire sentencing exercise is a nullity ab initio.”
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International pressure continues to mount on the Nigerian government over Kanu’s conviction. A group of international legal experts under the banner of Pan African Forum Ltd & Associates, based in London, has issued a legal notice warning Nigeria that it would commence legal action in a UK Court if the government does not immediately and unconditionally release Kanu. The group bases its demand on Opinion No. 25/2022 issued on July 20, 2022, by the United Nations Working Group on Arbitrary Detention, which found that Kanu’s arrest and extraordinary rendition were unlawful and ruled that his continued detention is arbitrary. The Nigerian government has consistently maintained that Kanu is facing serious terrorism and security-related charges and that due judicial process must be allowed to run its course.
Meanwhile, the apex Igbo socio-cultural organization, Ohanaeze Ndigbo, has called on President Bola Tinubu to grant amnesty to Nnamdi Kanu on or before June 12, 2026, as part of efforts to promote national reconciliation and strengthen unity across the country. The group emphasized that Kanu’s release, preferably timed to coincide with Nigeria’s Democracy Day, would signal a bold commitment to justice, inclusion, and healing decades-old grievances in the Southeast. Ohanaeze also dismissed fears that Kanu’s release could destabilize the country, arguing that such a move would demonstrate leadership anchored on reconciliation.
Obi’s latest comments come amid his political realignment ahead of the 2027 presidential election. After the collapse of an earlier opposition coalition, Obi secured the presidential ticket of the Nigeria Democratic Congress (NDC) at a special convention in Abuja in May 2026. He was unanimously endorsed by delegates following a motion moved by Senator Victor Umeh and seconded by former Deputy Senate President Ovie Omo-Agege. Shortly after accepting the nomination, Obi announced former Kano State Governor Rabiu Musa Kwankwaso as his running mate. In his acceptance speech, Obi pledged a technology-driven and intelligence-led security framework, promising to address both immediate threats and root causes such as poverty and unemployment. He recently dismissed claims that he was avoiding former Vice-President Atiku Abubakar, stating: “There are very few human beings who are as close as I am to Atiku. So I can’t be running from him.”
As the 2027 election approaches, Obi’s campaign continues to gain momentum, particularly among young Nigerians and diaspora communities. His message of inclusive governance, dialogue over coercion, and political solutions to national crises resonates with voters frustrated by the status quo. His pledge to release Nnamdi Kanu and engage all agitators in dialogue represents a sharp departure from the current administration’s security approach. Whether this stance will translate into electoral success remains to be seen, but it has undoubtedly positioned Obi as a candidate willing to take bold, unconventional positions on Nigeria’s most contentious issues. The Nigerian government has consistently maintained that Kanu is facing serious terrorism and security-related charges and that due judicial process must be allowed to run its course. However, with international pressure mounting, an active appeal process, and major political figures like Obi calling for Kanu’s release, the case continues to be a defining issue in Nigeria’s political landscape.
Obi Promises to Release Nnamdi Kanu if Elected, Says ‘He Has Done Nothing Wrong’
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Uzodimma Approves N300m Support for Imo Law Students, South African Returnees
Uzodimma Approves N300m Support for Imo Law Students, South African Returnees
Imo State Governor, Senator Hope Uzodimma, has approved a N300 million financial intervention for Imo indigenes studying at the Nigerian Law School and citizens of the state recently returned from South Africa.
The intervention is designed to provide relief to beneficiaries facing economic hardship, rising living costs, and reintegration challenges.
According to the Imo State Commissioner for Information, Public Orientation and Strategy, Hon. Declan Emelumba, the package will benefit two categories of people: law students and South African returnees.
Under the arrangement, 250 Imo indigenes who returned from South Africa will receive N1 million each as a reintegration fund to help them resettle and rebuild their lives after being forced to return to Nigeria.
In addition, 100 Imo students at the Nigerian Law School will receive N500,000 each to help cushion the impact of inflation and rising cost of living while pursuing their legal education.
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Emelumba explained that the governor was moved to approve the intervention following appeals from the law students and concerns over the difficult circumstances facing the returnees.
“The law students made a passionate appeal to His Excellency to support them to cushion the global inflation as regards cost of living. As a caring father, he responded promptly,” he said.
He added that the support for the returnees was driven by empathy, noting that many of them went through difficult experiences that forced them to return to Nigeria.
“The governor felt that the traumatised returnees needed a helping hand from government. Hence, he approved what can be described as a re-integration fund to enable them settle down with minimal discomfort,” Emelumba stated.
The commissioner further noted that the initiative aligns with the administration’s Shared Prosperity Agenda, which focuses not only on infrastructure development but also on human capital development and social welfare.
He also recalled that this is not the first time the state government has supported law students, stating that many of them are already beneficiaries of government scholarship programmes and periodic financial assistance.
The latest intervention has been described as part of ongoing efforts by the Uzodimma administration to ease economic pressure on students and vulnerable citizens, especially in the face of national inflation and unemployment challenges.
Stakeholders say the initiative could help provide temporary relief to beneficiaries as they continue their education or reintegrate into society after returning from abroad.
Uzodimma Approves N300m Support for Imo Law Students, South African Returnees
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