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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Tinubu orders security forces to hunt down killers after 30 murdered in Kaduna attack

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Tinubu orders security forces to hunt down killers after 30 murdered in Kaduna attack
President Bola Ahmed Tinubu

Tinubu orders security forces to hunt down killers after 30 murdered in Kaduna attack

President Bola Ahmed Tinubu has directed the Nigerian Armed Forces, the Nigeria Police Force and relevant intelligence agencies to launch an intensified manhunt for those responsible for the deadly attack that claimed the lives of about 30 people in Naridon Village, Kamaru Ward, Kauru Local Government Area of Kaduna State.

The attack, which occurred in the early hours of Monday, left men, women and children dead, while several others sustained injuries. Homes and other property were also set ablaze, forcing many residents to flee the community.

Describing the incident as a “barbaric and cowardly” assault on innocent citizens, President Tinubu vowed that the perpetrators would be apprehended and made to face the full weight of the law.

The President said criminal elements would not be allowed to reverse the security gains recorded in Kaduna State and other parts of the country.

“I have directed the Armed Forces, police, and relevant intelligence agencies to intensify operations across the affected areas to track down the perpetrators swiftly and restore normalcy to the region.”

Tinubu reiterated his administration’s commitment to strengthening the country’s security architecture through improved intelligence gathering, enhanced operational capacity and sustained efforts to dismantle criminal networks threatening lives and property.

“Our administration has an unwavering commitment to strengthening security infrastructure, equipping response personnel, and neutralising criminal networks attempting to disrupt the peace of the nation.”

The President also appealed to residents of affected communities to support ongoing security operations by providing timely and credible intelligence that could help security agencies prevent future attacks and apprehend those responsible.

While expressing condolences to the families of the victims, Tinubu sympathised with Kaduna State Governor Uba Sani, the Kaduna State Government and residents of the state over the tragic loss of lives.

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He assured affected communities that the Federal Government would continue working closely with security agencies to restore peace and improve safety across Kaduna State and other troubled parts of the country.

The Kaduna State Government also condemned the attack, describing it as a senseless act of violence against innocent citizens. State authorities said security agencies had been directed to intensify operations in the affected area and ensure those behind the attack are arrested and prosecuted. The government reaffirmed its commitment to protecting lives and property while collaborating with federal security agencies to strengthen surveillance and prevent further attacks across vulnerable communities.

Meanwhile, the Southern Kaduna Peoples Union (SOKAPU) has urged the Kaduna State Police Command and other security agencies to adopt more proactive strategies to tackle the recurring killings, kidnappings and attacks in Southern Kaduna.

In an open letter addressed to Governor Uba Sani and the Commissioner of Police, SOKAPU National President, Engr. Tabara Kato, described the Naridon attack as another painful reminder of the persistent insecurity confronting communities in Kauru, Kajuru, Chikun and Zangon Kataf local government areas.

According to the union, repeated attacks have displaced families, destroyed homes and farmlands, disrupted farming activities and left thousands of residents living in fear.

SOKAPU called on security agencies to move beyond reactive responses by deploying tactical and counter-terrorism units to vulnerable communities and forest corridors believed to serve as hideouts for criminal groups.

The organisation also advocated increased intelligence-led operations, regular patrols of farming communities, improved surveillance and quicker responses to distress calls. It stressed that restoring public confidence would require consistent communication between security agencies and local communities, alongside decisive action against those responsible for violent attacks.

The latest killings have once again drawn attention to the security challenges facing parts of Kaduna State, particularly in Southern Kaduna, where communities have experienced repeated attacks, kidnappings and communal violence over the years.

The violence has resulted in significant loss of lives, mass displacement and destruction of livelihoods, while many farmers have been unable to cultivate their land due to persistent security threats.

Security analysts say sustained military operations, improved intelligence sharing and stronger collaboration among federal, state and local authorities will be critical to addressing the root causes of insecurity and preventing future attacks.

As investigations continue, residents of Naridon and neighbouring communities are hoping for swift justice and stronger security measures to enable them to return to their normal lives without fear.

Tinubu orders security forces to hunt down killers after 30 murdered in Kaduna attack

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Tinubu Agrees to Meet South African Envoy After Ramaphosa’s Intervention

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Tinubu Agrees to Meet South African Envoy After Ramaphosa's Intervention
President Bola Ahmed Tinubu and President Cyril Ramaphosa

Tinubu Agrees to Meet South African Envoy After Ramaphosa’s Intervention

President Bola Ahmed Tinubu has reversed his earlier decision and agreed to receive the South African special envoy, following a telephone conversation with President Cyril Ramaphosa over the weekend. The South African delegation, led by Minister of International Relations and Cooperation Ronald Lamola, arrived in Abuja on Friday, July 24, 2026, with what was described as a “very important message” for the Nigerian leader. The delegation had reportedly been left waiting at the Transcorp Hilton Hotel in Abuja after being unable to secure an audience with President Tinubu.

The initial refusal to receive the South African envoy came amid growing concerns over persistent xenophobic attacks against Nigerians in South Africa. The diplomatic standoff was further intensified by the alleged killing of a Nigerian national, Chika Ibe, who was reportedly taken from his residence at Parksig Villas Complex in Bellville, Cape Town, and tortured to death by personnel of the South African Police Service (SAPS). Nigeria’s Minister of Foreign Affairs, Bianca Odumegwu-Ojukwu, advised that it was not an appropriate time for President Tinubu to receive the South African envoy, citing the continued attacks on Nigerians, their businesses, and properties in South Africa. According to diplomatic sources, she stressed that the South African delegation could not secure a presidential audience without a prior appointment and concrete commitments from Pretoria.

A key condition set by Nigeria is the ratification of the Memorandum of Understanding on the Early Warning Mechanism (EWM) , which both countries signed in Abuja on October 22, 2025. The agreement was designed to strengthen cooperation between both countries in monitoring threats of violence, protecting citizens, and addressing consular matters. It also provides for rapid communication channels to de-escalate security risks involving foreign nationals and prevent xenophobic attacks. South Africa has reportedly failed to ratify the agreement, citing what Nigerian officials described as inadequate reasons. Officials at the Ministry of Foreign Affairs noted that the framework could have facilitated compensation claims for Nigerians whose businesses and properties were destroyed during previous xenophobic attacks in South Africa. However, South African authorities have so far declined to compensate victims.

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Following back-channel moves by South African authorities, including a call initiated by President Ramaphosa over the weekend, President Tinubu agreed to meet with the delegation. The meeting is expected to hold later, with the Minister of State for Foreign Affairs, Ambassador Sola Enikanolaiye, playing a crucial role in the absence of the Minister of Foreign Affairs, who is currently in Addis Ababa. The diplomatic engagement comes as South Africa faces growing pressure over anti-immigrant protests and the treatment of foreign nationals. Lamola has been engaging leaders on the continent to explain Pretoria’s approach to migration management and efforts to prevent violence against foreign nationals.

Nigeria has maintained a firm stance against xenophobic attacks in South Africa. At the 69th Ordinary Session of the Authority of Heads of State and Government of ECOWAS, held recently in Lungi, Sierra Leone, Vice President Kashim Shettima, who represented President Tinubu, condemned the attacks and pledged that Nigeria would push for stronger measures against xenophobia at the African Union. Shettima called for a united continental response to protect the rights and dignity of Africans living across the continent and disclosed that the Federal Government had evacuated 1,490 Nigerians affected by previous xenophobic violence. He reaffirmed Nigeria’s commitment to working with regional and continental institutions to address the crisis. Observers believe South Africa’s diplomatic outreach may be driven by concerns over the potential impact of deteriorating relations on South African investments and businesses operating in Nigeria, as well as Nigeria’s growing campaign for tougher continental measures against xenophobia. South African companies with significant investments in Nigeria include major firms in telecommunications, banking, and retail sectors, which could face heightened scrutiny if tensions persist. The meeting between Tinubu and the South African envoy is expected to provide an opportunity for both countries to address the concerns and strengthen bilateral engagement on migration management, diplomatic cooperation, and the protection of nationals affected by recent tensions.

 

Tinubu Agrees to Meet South African Envoy After Ramaphosa’s Intervention

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Nigeria’s Renewable Energy Milestone: 15 Universities Now Fully Connected to Solar Farms

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Nigeria's Renewable Energy Milestone: 15 Universities Now Fully Connected to Solar Farms

Nigeria’s Renewable Energy Milestone: 15 Universities Now Fully Connected to Solar Farms

The Rural Electrification Agency has achieved a major milestone in Nigeria’s energy transition, successfully connecting 15 federal universities to solar farms while advancing the world’s largest publicly funded renewable energy access programme. The Rural Electrification Agency (REA) has announced that 15 universities across Nigeria have been fully connected to solar farms through its renewable energy intervention programmes, marking a transformative step toward sustainable energy infrastructure for the nation’s education sector. REA Managing Director and Chief Executive Officer, Abba Aliyu, disclosed this achievement during an interview on Channels Television’s The Morning Brief on Monday, confirming that all 15 institutions are now fully operational with their solar installations. “We also have completed our interventions in the universities where we completed 15 universities as of today. All these universities now are fully connected with the solar farms,” Aliyu stated. This development represents a critical pivot away from the unreliable national grid toward localized, renewable energy generation for Nigeria’s tertiary education sector, delivering uninterrupted power to support 202,983 students, 23,088 staff members, and 5,500 medical professionals across these institutions.

The university solarisation forms an integral component of the Distributed Access through Renewable Energy Scale-up (DARES) project, which Aliyu described as the largest publicly funded renewable energy access programme in the world. The DARES initiative is structured to catalyze the off-grid energy market through targeted grant support for mini-grid and standalone solar projects, aiming to impact the lives of approximately 17.5 million Nigerians. The Nigeria DARES Project is a $750 million initiative funded by the World Bank and is designed to accelerate access to reliable, decentralized energy solutions for unserved and underserved communities across Nigeria. The project aims to empower state governments, enable private sector participation, and scale solar technologies while contributing to the broader Mission 300 agenda—a global effort to deliver energy access to 300 million people in Sub-Saharan Africa by 2030. Aliyu emphasized that the project has attracted significant interest and participation from the private sector, contributing to its rapid expansion, noting that for the first time in the country, the agency is deploying more than 1,000 mini-grids nationwide, including both isolated and interconnected mini-grids.

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The university solarisation is primarily executed under the REA’s Energizing Education Programme (EEP) , a Federal Government of Nigeria initiative aimed at providing reliable and sustainable electricity to Federal Universities and their affiliated Teaching Hospitals through solar hybrid power plants and rehabilitated distribution infrastructure. The programme is being implemented in phases, with EEP Phase II, funded by the World Bank, covering seven universities and two teaching hospitals where commissioning is already underway across all institutions, delivering a combined 32MW of newly installed captive solar power plants across beneficiary institutions. Notable installations under Phase II include a 12MW hybrid system at the University of Maiduguri and its Teaching Hospital in Borno State, a 7MW plant at the University of Calabar and its Teaching Hospital, a 3MW installation at the University of Abuja, 3MW installations at the Federal University of Agriculture in Abeokuta and the Michael Okpara Federal University of Agriculture in Umudike, a 2.5MW facility at the Nigerian Defence Academy in Kaduna, and a 1.5MW installation at Federal University, Gashua in Yobe State. EEP Phase III, funded by the African Development Bank (AfDB), covers eight federal universities and one teaching hospital, with commissioning targeted for Q4 2025, adding another 36.5MW of clean capacity across eight additional university campuses, with Aliyu confirming that “another round of eight more have been developed” as the agency continues expanding its footprint in the education sector.

The cost-saving impact of the programme has been remarkable, with Alex Ekwueme Federal University saving almost ₦2 billion in the last five years on energy bills, showcasing how sustainable energy solutions can drive financial efficiency in public institutions, which is particularly significant given that recent increases in electricity tariffs have impacted public universities, with some paying between N150 million and N300 million monthly for electricity bills. Beyond power access, the EEP Phase II projects have already equipped 140 female STEM students with hands-on training in power system design and construction, while an additional 700 students will be trained in renewable energy courses at world-class training centers in the first year of operations and maintenance, demonstrating the programme’s commitment to inclusive capacity building.

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The REA’s renewable energy push extends beyond universities, with the agency currently deploying more than 1,000 mini-grids nationwide, alongside 48 interconnected mini-grid projects developed in collaboration with electricity distribution companies, operating on aggressive execution timelines of between six and eight months per site. The DARES project has also attracted significant private-sector interest and participation, with Aliyu confirming that the agency has signed several memoranda of understanding with Nigerian banks covering equipment financing, debt financing, and bridge financing for private-sector operators, catalyzing N1.1 billion private sector funding to deploy 1,350 mini grids. Under the Performance-Based Grant sub-component for isolated mini-grids, for instance, Privida Power Limited secured a grant to deploy 2.47 megawatts of solar mini-grids across eleven communities in Kogi State, providing over 11,027 new connections, while eight companies under the Standalone Solar Systems component signed agreements to roll out tier 1 and 2 plug-and-play solutions to households and MSMEs across rural Nigeria. The REA recently completed Nigeria’s first nationwide electricity access mapping exercise, which identified more than 750,000 communities requiring energy infrastructure development, providing critical data for the expansion of electricity access through renewable energy projects.

In a move to ensure the long-term viability of these investments, the REA has established a sustainability framework requiring beneficiary institutions to actively maintain their solar infrastructure, with representatives from 15 universities signing collaborative agreements during the 2024 EEP Stakeholders’ Engagement Forum committing to regular maintenance protocols and financial responsibility for ongoing operational costs. The REA maintains that the approach is private-sector driven, with capital grants used to incentivise operators rather than relying solely on traditional government contracting models, ensuring sustainability as private operators have their own financial stake in the infrastructure they deploy and manage. Aliyu highlighted the agency’s commitment to expanding access to underserved communities, noting that the comprehensive mapping exercise has enabled the agency to strategically target interventions where they are most needed, ensuring that the benefits of renewable energy reach all corners of the country.

Nigeria’s Renewable Energy Milestone: 15 Universities Now Fully Connected to Solar Farms

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