Femi Otedola Exposes Alleged Multi-Billion Naira Fraud at Zenith Bank

Billionaire businessman Femi Otedola has accused Jim Ovia, chairman of Zenith Bank, of involvement in fraudulent transactions related to his company, Seaforce Shipping Limited’s account. Otedola claims that Zenith Bank conducted unauthorized trading with the Seaforce account, which had been inactive since 2010.

According to Otedola, Zenith Bank used Seaforce’s account for trading activities in 2011 without his knowledge or consent. Despite Seaforce never applying for or receiving loans from the bank, unauthorized transactions amounting to billions of naira took place. Otedola discovered these activities 13 years later, after a whistleblower within Zenith Bank alerted him.

When Otedola confronted Zenith Bank officials, he reported receiving an apology. However, discrepancies in documentation raised further concerns. A letter from Zenith Bank to Seaforce’s auditors on March 19, 2018, indicated a debt of N2,278,420, while the actual bank statement showed a debt of N2.9 billion on the same date. This letter, signed by internal audit control head Taofik Bashir and group telecom head Edwin Kind Olie, contradicted the bank statement and sparked additional suspicion.

Otedola questioned who reduced the purported debt from N16.9 billion to N11 billion without his knowledge. He cited credits recorded against Seaforce’s account, including N77,169,375 on April 18, 2011, and various credits in December 2011, amounting to hundreds of millions of naira. As a result, Seaforce’s current debt stands at N5.9 billion, primarily due to interest charges.

The Force Criminal Investigation Department (FCID) is investigating these allegations, and a senior Zenith Bank official has already been questioned by the police. Meanwhile, Otedola’s companies—Zenon, Seaforce, Luzon Oil and Gas, and Garment Care Limited—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 these entities from trading shares or paying dividends until a motion for an interlocutory injunction is heard.