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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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Cocaine Trafficking: Court Denies KC Luxury Bail Over Missing Medical Certificate
The Federal High Court in Lagos has rejected the bail application of Nigerian businessman and social media influencer Afolabi Kazeem Michael, popularly known as KC Luxury, over alleged cocaine trafficking and money laundering, ruling that the defence failed to provide sufficient medical evidence to justify his release.
Justice Musa Kakaki delivered the ruling on Wednesday, October 28, 2026, holding that the application lacked the necessary medical certificate to establish special circumstances warranting bail on health grounds.
“There is no medical certificate to warrant the court to grant him bail,” the judge said.
He added that a defendant claiming to require special medical attention should provide an expert assessment explaining the condition and the need for the requested treatment.
KC Luxury’s lawyer, Emefo Etudo, had asked the court to release his client so he could receive specialised treatment at the Lagos University Teaching Hospital (LUTH). The defence argued that his health had deteriorated and that he required medical attention beyond what was available at the facility where he was being held.
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The application followed concerns about the defendant’s health after he was brought to the court premises in an ambulance on October 23 while receiving oxygen.
During that proceeding, a nurse attached to the Police Hospital in Falomo, Lagos, told the court that KC Luxury had been admitted on October 7 and diagnosed with asthma and sepsis.
The nurse said the defendant remained inside the ambulance because he was receiving oxygen and could not safely be moved into the courtroom.
The defence also alleged that KC Luxury had suffered a collapsed lung and needed specialist care. However, the prosecution opposed the bail request, arguing that the medical evidence did not establish that his condition could not be managed while in custody.
In his ruling, Justice Kakaki reviewed the medical exhibits submitted by the defence but held that they did not sufficiently establish the special circumstances required to grant bail.
The judge also noted that the defence had failed to demonstrate a material change in circumstances that would justify reconsidering the application.
He questioned the argument that KC Luxury needed treatment at LUTH without sufficient evidence showing that the hospital or other available medical facilities could not adequately manage his condition.
Despite refusing bail, the court directed officials of the Ikoyi Custodial Centre to ensure that the defendant had unrestricted access to doctors and medical specialists for examination and treatment.
The judge also ordered an accelerated hearing of the case and adjourned proceedings until November 2, 2026, for the commencement of trial.
KC Luxury is standing trial alongside Boniface Freeman Ochoche Sule and Ikechukwu Ekugo Patriarch on a 22-count charge filed by the National Drug Law Enforcement Agency (NDLEA).
The charges include allegations of conspiring to export 184.5 kilogrammes of cocaine to the United Kingdom and money laundering. The defendants have pleaded not guilty.
According to the NDLEA, the cocaine was intercepted at a courier facility in Lagos before it could be exported. The agency also accused the defendants of involvement in financial transactions and asset acquisitions allegedly connected to the suspected drug operation.
The defendants have yet to be convicted, and the allegations remain before the court.
The latest ruling means KC Luxury will remain in custody while the criminal proceedings continue, with the court directing that his medical needs be addressed during detention.
Cocaine Trafficking: Court Denies KC Luxury Bail Over Missing Medical Certificate
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After AfDB Tenure, Adesina Offers to Help Tinubu Drive Nigeria’s Growth
Former President of the African Development Bank (AfDB), Akinwumi Adesina, has declared his readiness to contribute to Nigeria’s development in any capacity deemed appropriate by President Bola Ahmed Tinubu, while clarifying that he is not seeking a government appointment.
Adesina made the declaration on Tuesday after meeting Tinubu at the Presidential Villa in Abuja, where he briefed the President on his 10-year tenure at the continental development finance institution and its financial support for Nigeria.
The former AfDB president said his willingness to serve was motivated by patriotism and a sense of responsibility to his country, rather than a desire to secure a political position.
“I’m fully able to help Nigeria in any capacity. I’ve always had that. My heart is always at home,” he told journalists after the meeting.
He added that he was prepared to contribute wherever the President considered his experience and expertise useful.
“In any capacity that His Excellency feels I can help, I can help in anything. I’m not looking for a job. I’m not looking for anything. I’m just here to help,” Adesina said.
“It’s my country. I have a duty, an obligation and a responsibility to do so, and I will.”
Adesina briefs Tinubu on AfDB achievements
Adesina explained that the visit was an opportunity to formally inform Tinubu that he had completed his two terms as AfDB president and to present an account of the bank’s achievements during his leadership.
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He said the bank provided approximately $7 billion in financing to Nigeria between 2015 and 2025, compared with total financing of $11.1 billion since it began operations in Nigeria in 1971.
According to him, the financing provided during his decade at the helm represented approximately 63 per cent of the bank’s cumulative support to Nigeria over the period.
Adesina said Tinubu expressed satisfaction with the bank’s contributions and the projects supported during his tenure.
The former Nigerian minister of agriculture led the AfDB from 2015 until September 2025, completing two terms as the institution’s president. He was the first Nigerian to occupy the position.
Adesina commends Tinubu’s economic reforms
During the meeting, Adesina also commended Tinubu’s economic reforms, particularly the removal of the petrol subsidy and the harmonisation of foreign exchange windows.
He described the measures as difficult but important decisions, arguing that they were beginning to produce results in some areas of the economy.
According to him, foreign exchange availability had improved, portfolio investors were returning to the country, and inflation was trending downwards.
However, he acknowledged that prices remained high, meaning many Nigerians continued to face pressure from the cost of living.
Adesina also cited improved assessments from some international credit-rating agencies, which he said reflected changing perceptions of Nigeria’s economic outlook.
Despite these developments, he cautioned that economic stabilisation was only the beginning of a broader transformation process.
“You have to also now move from the issue of the reforms and stabilisation straight into structural transformation and also growth and prosperity,” he said.
He argued that Nigeria must now focus on translating economic reforms into stronger productivity, expanded economic opportunities and improved living standards.
Former AfDB chief urges focus on growth and prosperity
Adesina’s remarks place emphasis on the need to move beyond macroeconomic adjustments towards policies that deliver tangible benefits for households and businesses.
His comments come amid continuing debate over the impact of the Tinubu administration’s reforms, including the removal of fuel subsidies and changes to the foreign exchange market.
While the government has defended the measures as necessary to stabilise public finances and improve economic efficiency, higher living costs have remained a concern for many Nigerians.
Adesina did not announce any specific government role he was prepared to take up, and the Presidency did not announce an appointment following the meeting.
Instead, the former AfDB president reiterated his willingness to contribute his experience in development finance, agriculture and economic transformation whenever the President considered his services necessary.
After AfDB Tenure, Adesina Offers to Help Tinubu Drive Nigeria’s Growth
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Why Nigeria Needs Fresh $21.7bn Loan Despite Rising Debt Burden – Finance Minister
Why Nigeria Needs Fresh $21.7bn Loan Despite Rising Debt Burden – Finance Minister
The Federal Government has defended its plan to secure about $21.7 billion in fresh external loans, saying additional financing is needed to bridge Nigeria’s infrastructure funding gap, support economic growth and finance critical development projects across the country.
The proposed borrowing plan, covering 2026 and 2027, comprises $20.52 billion and €1.045 billion, equivalent to approximately $21.7 billion.
President Bola Ahmed Tinubu submitted the request to the National Assembly, arguing that Nigeria requires substantial investment to address infrastructure shortages and sustain economic development.
The proposed facilities would support projects and programmes in power, transportation, healthcare, education, agriculture, water supply, security and employment generation, as well as reforms to public financial management.
According to the President, the projects underwent technical and economic evaluations and are expected to create jobs, promote skills acquisition and entrepreneurship, reduce poverty and strengthen food security.
He said external borrowing had become necessary because the financial resources required to close Nigeria’s infrastructure deficit exceeded what the government could adequately provide from existing funding sources.
The request is subject to legislative approval and has not yet received final authorisation.
Why the government says Nigeria needs more loans
The administration’s main argument is that inadequate infrastructure continues to constrain productivity, investment and economic growth. It maintains that borrowing can provide the capital needed to finance projects that would otherwise face funding delays.
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Electricity, transport networks, healthcare facilities, education and water infrastructure are among the sectors expected to benefit from the proposed financing.
The government also argues that investment in these areas could stimulate economic activities, improve access to essential services and generate employment across the 36 states and the Federal Capital Territory.
However, the economic benefits will depend on whether the projects are completed on schedule, remain within budget and deliver returns sufficient to justify their financing costs.
Nigeria’s debt profile raises concerns
The proposed borrowing comes amid growing scrutiny of the country’s public debt.
Figures from the Debt Management Office show that Nigeria’s total public debt stood at ₦166.79 trillion at the end of June 2026, compared with ₦87.38 trillion in June 2023.
The increase has intensified debate over the government’s borrowing strategy, although the rise in the naira value of external debt has also been influenced by exchange-rate depreciation.
If the proposed facilities are fully approved and disbursed, they would add to Nigeria’s existing obligations, with the eventual impact depending on exchange rates, repayment terms and other changes in the debt stock.
Economists and business groups have therefore called for greater transparency about the individual projects to be financed, their costs, expected returns and repayment arrangements.
The Association of Small Business Owners of Nigeria has warned that new borrowing should be tied to projects capable of generating measurable economic benefits, including jobs, productivity and government revenue.
Questions over previous borrowing
The latest request has also prompted questions about the implementation of projects funded by earlier loans and the government’s outstanding obligations to contractors.
Senator Victor Umeh, who represents Anambra Central, questioned why contractors executing capital projects were still awaiting payment despite previous legislative approvals for borrowing.
He argued that the government needed to demonstrate how earlier facilities had been used and explain why budgeted projects remained underfunded.
Former Vice-President Atiku Abubakar, the presidential candidate of the African Democratic Congress, also urged the National Assembly to suspend consideration of the request until the government provides comprehensive information about the projects, contractors, costs, loan terms and repayment obligations.
The concerns centre on whether additional borrowing will produce sufficient economic returns or increase the pressure on public finances without delivering commensurate development benefits.
National Assembly to scrutinise request
The President’s proposal has been referred to the relevant National Assembly committees for consideration.
The legislative review is expected to examine the proposed facilities and their intended uses before lawmakers decide whether to approve the request.
The government maintains that the financing is necessary to address infrastructure shortages and support development, while critics insist that the administration must demonstrate the value of previous loans and provide clearer details of the new projects.
Ultimately, the justification for the proposed $21.7 billion borrowing plan will depend not only on the infrastructure needs identified by the government but also on the terms of the loans, the transparency of project selection, the effectiveness of implementation and Nigeria’s ability to meet its repayment obligations.
Why Nigeria Needs Fresh $21.7bn Loan Despite Rising Debt Burden – Finance Minister
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