Femi Otedola uncovers alleged fraud in Zenith Bank account

The dispute between billionaire businessman Femi Otedola and Jim Ovia, chairman of Zenith Bank, over an alleged multibillion-naira fraud has intensified.

Femi Otedola has accused Jim Ovia of misusing the Zenith Bank account of his company, Seaforce Shipping Limited, to conduct unauthorized trades in 2011, without his knowledge or permission. This accusation, reported by TheCable, highlights a serious breach of trust, Pulse reports

The Force Criminal Investigation Department (FCID) of the police is currently investigating these allegations, while efforts are underway to resolve the issues amicably. The online newspaper has reached out to Ovia and Zenith Bank for their comments.

Despite Seaforce Shipping being inactive since 2010, its account was allegedly used for trading activities without Otedola’s knowledge. Otedola claimed that Seaforce never applied for or received a loan from Zenith Bank, yet unauthorized trading worth billions of naira continued in the account.

When requested for documentation, such as offer letters for the alleged loans, Zenith Bank reportedly could not provide them, raising concerns about the transparency of their operations. Otedola discovered the suspicious activities recently—13 years after they occurred—when a whistleblower within Zenith Bank informed him. Upon confronting Zenith Bank officials, they reportedly issued an apology.

Otedola presented a letter dated March 19, 2018, from Zenith Bank to Shofolawe-Bakare & Co, Seaforce’s auditors, stating that Seaforce owed only N2,278,420, contrasting sharply with the N5 billion shown in the bank statement obtained by the online newspaper. Additionally, the bank statement on the same day indicated a debt of N2.9 billion, differing from the N2 million mentioned in the letter signed by Taofik Bashir (internal audit control) and Edwin Kind Olie (group head, telecom). Seaforce’s account had transactions totaling over N16 billion from 2011 to 2024.

Otedola questioned who made payments to reduce the supposed debt from N16.9 billion to N11 billion, as he was unaware of these transactions. He noted credits of N77 million on April 18, 2011, N119 million on December 1, 2011, N316 million on December 8, 2011, N266 million on December 15, 2011, and N444 million on December 12, 2011. Currently, Seaforce’s debt stands at N5.9 billion, primarily due to interest charges.

The investigation has seen significant progress, with a senior bank official already being questioned by the police. This development is a crucial step in uncovering the truth behind Seaforce’s financial discrepancies.

Meanwhile, Zenon, Seaforce, Luzon Oil and Gas, Garment Care Limited, and Otedola have secured a federal high court injunction against Zenith Bank, Quantum Zenith Securities and Investment, Veritas Registrar, and Central Securities Clearing System. This injunction prevents them from trading shares or paying dividends until the hearing of the motion for an interlocutory injunction.