Femi Otedola Accuses Zenith Bank of Fraudulent Trading on Seaforce Shipping’s Account
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Nigerian billionaire Femi Otedola has brought serious allegations against Zenith Bank, claiming the bank engaged in fraudulent trading using the account of his company, Seaforce Shipping Limited, without his consent.
“Although this and other allegations are being investigated by the Force Criminal Investigation Department (FCID) of the police, moves are being made to resolve the matters amicably,” reports TheCable.
Despite Seaforce Shipping’s account being inactive since 2010, it continued to be used for trading, unbeknownst to Otedola. In his petition to the police, Otedola stated that Seaforce never applied for or took a loan from Zenith Bank, yet unauthorized trading amounting to billions of naira persisted on the account.
When asked to provide documentation, including offer letters to support the supposed loans, Zenith Bank reportedly failed to produce any. Otedola said he only discovered these suspicious activities 13 years later, with the help of a whistleblower from within the bank.
TheCable learned that upon confronting Zenith Bank officials, they apologized to Otedola. He provided a letter from Zenith Bank dated March 19, 2018, which indicated a debt of only N2,278,420 on the Seaforce account. However, the bank statement obtained by TheCable showed a debt of N5 billion.
“Curiously, on the day the letter was written, the bank statement showed a debt of N2.9 billion – compared to the N2 million stated in the letter signed by Taofik Bashir (internal audit control) and Edwin Kind Olie (group head, telecomm),” TheCable reported.
Transactions totalling over N16 billion were recorded against Seaforce’s account from 2011 to 2024. Otedola questioned who made payments that reduced the purported debt from N16.9 billion to N11 billion, as he was unaware of these transactions. Significant credits appeared on the account on several dates in 2011, further complicating the matter.
As a result, Seaforce now has a debt of N5.9 billion, largely due to interest charges. The police have already questioned a senior official of the bank.
In response to the allegations, Otedola and his associated companies – Zenon, Seaforce, Luzon Oil and Gas, and Garment Care Limited – 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 the hearing of the motion for an interlocutory injunction.
The case has garnered significant attention and raises critical questions about the accountability and transparency of banking practices in Nigeria. As investigations continue, stakeholders are keenly observing how the matter will unfold and whether justice will be served.
TheCable
