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Just In : Otedola, Zenith Bank opt for out-of-court settlement

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By Kayode Sanni-Arewa

The Federal High Court of Nigeria, Lagos Division, dismissed the case on Thursday on receiving a notice of discontinuance from the plaintiffs.

Femi Otedola, the chairman of FBN Holdings and majority shareholder of Geregu Plc, and some of his companies have opted for an out-of-court settlement with Zenith Bank Plc.

Mr Otedola was involved in a legal dispute with the bank over alleged “fraudulent transactions” on his company’s accounts.

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Court papers obtained by PREMIUM TIMES showed the Federal High Court of Nigeria, Lagos Division, where Mr Otedola and his companies filed the suit against the lender on 12 March, dismissed the case on Thursday, 13 June, on receiving a notice of discontinuance from the plaintiffs.

Zenon Petroleum & Gas Limited, Seaforce Shipping Co. Limited, Luzon Oil & Gas Limited, Garment Care and Mr Otedola were the plaintiffs, while Zenith Bank, Quantum Zenith Securities & Investment Limited, Veritas Registrars Limited and Central Securities Clearing System Plc were the defendants.

According to a court document, Justice A.O. Faji discontinued the lawsuit after the counsel for the first to third defendants and the counsel for the plaintiffs asked for the matter to be dismissed, with the “counsel for the fourth defendant not objecting.”

Mr Otedola and his companies initiated legal action against Zenith Bank and the other defendants in March, claiming that the lender disposed of his shares in the bank without authorisation, manipulated the companies’ bank accounts and fabricated some documents to conceal the alleged crimes.

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He accused the lender of wrongfully calculating his debts before selling them to the Asset Management Corporation of Nigeria (AMCON), which the bank set up to buy the non-performing loans in the books of banks with the intention of recovering them thereafter.

Zenon had claimed that the letters of credit that led to the bad loans AMCON acquired were opened before the corporation took over the debt in December 2011. The company stopped operating the account after AMCON’s intervention.

According to a document seen by PREMIUM TIMES, the overdue on Zenon’s account at the point AMCON took over the liabilities was N39 billion. Zenon said Zenith Bank offered the debt to the corporation at N49 billion. AMCON ended up paying the bank N44.1 billion for the debt.

Sources with knowledge of the matter told PREMIUM TIMES in May that Mr Otedola chose to take legal action against the bank after several failed reconciliation attempts. During the month, both parties held three meetings, none yielding the desired results.

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“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 the 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.”

According to a document detailing the deliberations of both parties at a meeting held on 20 May, Zenith Bank agreed to refund the N205 million it wrongfully debited to Zenon’s account with compounded accrued interest using a bankdraft.

Seaforce Shipping Company Limited, owned by the billionaire tycoon, said Zenith Bank presented some statements of account claiming that it owed the bank N5.9 billion as of February 2024. It added that Zenith Bank abandoned the claim after the company showed proof that Seaforce’s account was in credit as of 2018.

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A source said Zenith Bank sold the 415 million shares that Zenon held in Zenith Bank for N4.9 billion in December 2010, noting that the shares were repurchased in the following month for N5.4 billion, triggering a net loss of N142.9 million.

He further disclosed that related transactions were carried out on Mr Otedola’s account, causing a net loss of N61.5 million and a combined loss of N205.4 million in both cases.

Isyaku Mohammed, the commissioner of police in charge of administration at the Force Criminal Investigation Department, summoned the managing director of Zenith Bank on 16 May 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 obtained by PREMIUM TIMES, read.

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“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 stated that Zenith Bank wrongfully opened some letters of credit after AMCON acquired the debt in 2011, which led to unsolicited loan disbursement that further plunged Zenon into indebtedness.

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Airforce deploys surveillance aircraft to track abducted Oyo school children, teachers

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The Nigerian Air Force (NAF) has continued to provide aerial surveillance support to ongoing efforts aimed at rescuing teachers and pupils abducted from Yawota and Ahoro-Esinele communities in Oriire Local Government Area of Oyo State.

In a statement by NAF’s spokesman, Air Commodore Ehimen Ejodame, Oyo State Governor Seyi Makinde disclosed this during a courtesy visit by the representative of the Chief of the Air Staff (CAS), Air Marshal Sunday Kelvin Aneke, and the Air Officer Commanding (AOC) Logistics Command, Air Vice Marshal Abubakar Suleh, on 5 June 2026.

According to the statement, Makinde revealed that the NAF promptly deployed an aerial surveillance platform immediately after the abduction was reported, providing critical intelligence to support search-and-rescue operations.

The governor said intelligence generated from the surveillance missions had continued to assist security agencies in tracking developments and coordinating efforts towards securing the safe release of the victims.

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NAF said Makinde appealed for patience and support from residents, assuring them that all necessary resources are being deployed to ensure the successful resolution of the situation.

He commended the CAS and the NAF for their swift response and sustained support, noting that the Air Force made the surveillance platform available while Oyo State’s newly acquired aerial assets are still being assembled at the NAF Base, Lagos.

“Makinde further explained that the state acquired the platforms following consultations with the NAF to ensure access to maintenance support, engineering expertise and pilot training.

“He expressed confidence that the assets would significantly enhance security operations across Oyo State and neighbouring states once fully operational,” the statement released on Sunday partly read.

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Speaking on behalf of the CAS, Air Vice Marshal Suleh conveyed the solidarity of the NAF with the government and people of Oyo State and reaffirmed the Service’s commitment to supporting ongoing efforts to secure the safe return of the abducted victims.

He also commended the government for its continued support towards NAF projects and infrastructure development within the state.

“The NAF remains committed to working closely with other security agencies and relevant stakeholders to safeguard lives and property while supporting efforts to address security challenges across the country,” it added.

The pupils and teachers of the Baptist Nursery and Primary School (Yawota), Community Grammar School (Esiele), and L.A. Primary School were kidnapped on May 15 during a fatal attack by bandits.

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One of the teachers was also killed in captivity by the terrorists.

The incident sparked protests by teachers nationwide and civil society groups in Ibadan, demanding urgent action to rescue the victims.

Last week, the House of Representatives called on the federal Government and security agencies to bring the abducted students and teachers back alive.

Following the abduction, President Bola Tinubu approved the appointment of 1,000 forest guards and the deployment of a special rescue team following the abduction of teachers and students in the state.

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12 Years On: Suswam’s ₦3.1bn Scam Trial Stalls as Defence Yet to Open Case

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The long-running trial of ex- Benue State Governor, Gabriel Suswam, over allegations of diverting ₦3.1 billion in public funds has entered its 12th year, with court proceedings yet to reach the defence stage despite the prosecution having concluded its case.

Suswam and his former Commissioner for Finance, Omodachi Oklobia, have been facing prosecution by the Economic and Financial Crimes Commission (EFCC) since November 2015 over allegations bordering on money laundering and the alleged diversion of proceeds from the sale of Benue State Government shares in Dangote Cement Plc.

According to the anti-corruption agency, the funds in question, amounting to approximately ₦3.1 billion, were realised from the sale of state-owned shares in the cement company but were allegedly diverted for personal purposes rather than being remitted to government coffers. Both defendants have consistently denied wrongdoing and pleaded not guilty to the charges.

Court Orders Defendants to Open Defence

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After years of legal arguments, procedural delays and changes in judicial handling of the matter, the case appeared to be approaching a decisive phase in July 2025 when Justice Peter Lifu of the Federal High Court in Abuja dismissed a no-case submission filed by the defendants.

In his ruling delivered on July 23, 2025, the judge held that the prosecution had presented sufficient evidence to establish a prima facie case against the defendants, requiring them to enter a defence.

The ruling was widely viewed as a significant milestone in a case that had already spent nearly a decade in the judicial system.

However, despite the court’s directive, defence proceedings have yet to commence almost one year later.

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Series of Adjournments Prolong Trial

The court initially scheduled September 25, 2025, for Suswam and Oklobia to begin presenting their defence. However, proceedings failed to move forward as expected.

The matter was subsequently adjourned to January 20, 2026, for the adoption of final written addresses before being shifted again to May 29, 2026.

When the matter came up in May, the hearing could not proceed because the court was not sitting, resulting in another postponement.

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Justice Lifu thereafter fixed July 17, 2026, as the new date for the continuation of proceedings.

The repeated adjournments have further extended a case that has already spent more than a decade within Nigeria’s criminal justice system.

Trial Marked by Judicial Changes

Since its commencement, the case has experienced several disruptions arising from judicial transfers, appeals and allegations affecting the presiding judges.

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Justice Ahmed Mohammed initially handled the matter after the defendants were arraigned in 2015. However, he stepped aside in 2016 following media reports that questioned his impartiality in the case.

Although he later resumed proceedings, he withdrew again in 2019 after another publication raised similar concerns regarding his continued handling of the trial.

Following his withdrawal, the matter was reassigned to Justice Okon Abang, who proceeded with parts of the prosecution’s case and heard testimonies from some witnesses.

However, the legal battle took another turn when the Court of Appeal ruled that the case file should be returned to Justice Mohammed after an appeal filed by Suswam.

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Fresh delays emerged in 2023 when Justice Mohammed was elevated to the Court of Appeal, making it impossible for him to continue handling the matter. The case was subsequently reassigned to Justice Peter Lifu.

EFCC Calls Nine Witnesses

The EFCC eventually closed its case after presenting nine witnesses before the court.

Among those who testified were investigators, officials from the Benue State Ministry of Finance, representatives of stockbroking firms involved in the share transaction and a bureau de change operator.

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The prosecution relied on documentary and oral evidence in an effort to establish its allegations that proceeds from the sale of government-owned shares were unlawfully diverted.

Following the close of the prosecution’s case, the defendants sought to have the charges dismissed through a no-case submission. However, the court ruled that sufficient evidence existed to warrant a defence.

Queries Over Delayed Justice

The prolonged nature of the proceedings has continued to attract public attention, particularly because the case remains unresolved more than 11 years after it was first filed.

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Legal observers have pointed to the repeated adjournments, judicial reassignments and procedural setbacks as factors contributing to the slow pace of the trial.

Meanwhile, Suswam, who governed Benue State between 2007 and 2015 and later served as a senator, has remained active in Nigeria’s political landscape and is reportedly considering another electoral contest while the criminal case remains pending.Politics

With the next hearing scheduled for July 17, 2026, attention will once again focus on whether the defence will finally begin presenting its case in one of Nigeria’s longest-running high-profile corruption trials.

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Faleke Urges Civil Servants to Uphold Integrity, Hails Retiring National Assembly Clerk

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By Gloria Ikibah

The Chairman House of Representatives Committee on Finance, Rep. James Faleke, has called on civil servants across the country to uphold integrity, professionalism and due process in the discharge of their duties, describing the public service as a critical pillar of national development.

Faleke made the call in Abuja during the launch of a book titled “The Nigerian Legislature: A Practical Guide for Lawmakers”, written by the retiring Clerk of the House Committee on Finance, Mr Oscar Okoro, as part of activities marking his 60th birthday and retirement from service.

The lawmaker praised Okoro’s dedication, commitment and work ethic, describing him as a model civil servant whose career should serve as an inspiration to younger generations entering public service.

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According to Faleke, civil servants occupy a strategic position in governance and have a responsibility to ensure that government processes are carried out in accordance with established rules and procedures.

He said: “The civil service mainly, they build the country. They are the technocrats. They are the people that we, politicians rely on.
“And if the civil servant decide to get this done properly, I think the country will better off. Even when the politician says let us do it the other way and he says no, let us follow the rules. I think Nigeria will better off.

“It is about dedication to the development of Nigeria, when you trust and believe in the country, you will want to see the success of the country.

“Okoro is a very, very hardworking guy, unlike others, he is not money conscious, he just wants to see things accordingly and appreciably.

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“And for every time I push him hard, he works harder; I believe he’ is going to succeed very well in his retirement, so I wish him luck, and I pray that the family would not get the better of him”.

Faleke noted that Nigeria will benefit greatly if public servants remained committed to professionalism and resisted pressures to circumvent established procedures.

Also speaking at the event, Deputy Chairman of the House Committee on Finance, Rep. Abubakar Saidu, said his relationship with Okoro had grown beyond official duties and evolved into a family bond over the years.

He described the retiring clerk as a consummate professional whose conduct and dedication to service should serve as a guide for younger public servants.
According to him:

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“He is very dedicated, very patient, he is a professional, excellent and committed as well as exemplary when it comes to the job,” he said.

Saidu added that future generations of civil servants will have much to learn from Okoro’s approach to public service and his commitment to excellence.

In his remarks, House Spokesman, Rep. Akin Rotimi, described Okoro as an outstanding public servant whose contributions to the National Assembly and the country would not be forgotten.

Rotimi commended him for what he described as years of meritorious service and dedication to legislative administration.

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“My encouragement to people in service is that, this is the kind of person to model and pattern their careers after, people that have integrity and diligence their watch word,” he said.

Rotimi said that though the system has inbuilt mentorship and leadership recruitment processes, Okoro’ wealth of experience and expertise will be greatly missed.

Responding, Okoro attributed his success in life to God Almighty saying that life itself is very difficult and cautious journey.

“You have to know your onions, be hardworking, be patient, humble and respectful; if these are lacking, you are bound to fail either in the National Assembly or anywhere in life,” he said.

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Okoro said that he would return to legal practice, consultancy and dedicate the rest of his life to mentorship of younger generations and service to God.

Earlier, the book reviewer, Prof. Kabir Danladi of the Department of Public Law, Ahmadu Bello University (ABU) said that the book is a demonstration of hardwork and dedication to service exhibited by the author in the 27 years service to the nation.

He said that the book provides a practical and institutional guide for the Nigerians legislature with focus on the National Assembly.

The professor said that the books covers the constitutional foundation of National Assembly, internal structure, legislative procedure, oversight functions and its relationship with other arms of government.

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Danladi said that the 335 pages book is structured acrossed nine chapters, each addressing a distinct legislative life from historical foundation, constitutional law to practical step-by-step guidance on legislative procedure.

He said that there is alternative to reading especially for those who want to grasp the knowledge therein saying that reading is a command for human development and progress.

The professor recommended the book for all lawmakers, politicians and for all Nigerians to read and enhance the understanding of the legislature.

The event drew lawmakers, parliamentary staff, family members and associates who gathered to celebrate Okoro’s retirement and the launch of his book, which offers practical insights into legislative procedures and the workings of Nigeria’s parliament.

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Many of the speakers described the book as a valuable resource for lawmakers, legislative aides and students seeking a deeper understanding of parliamentary practice in Nigeria.

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