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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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“Greatest Threat Is Misinformation, Not Technical Glitch” – INEC Chairman Tasks Media On Osun Poll Coverage

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The Chairman of the Independent National Electoral Commission, INEC, Prof. Joash Amupitan, SAN, has described misinformation and disinformation as the greatest threat to the August 15 Osun State Governorship Election, urging the media to prioritize verified and ethical reportage.

He made the call on Saturday in Osogbo during an interactive session with media executives, describing journalists as the “Fourth Estate of the Realm” and critical stakeholders in the democratic process.

“However, your role as the Fourth Estate is critical to the survival of the process. In this final day window, the greatest threat we face is not technical failure, but the pathology of misinformation and disinformation,” the INEC Chairman said.

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“Fake news, manufactured election-day panics, and the unauthorized declaration of parallel results are direct assaults on our public peace and democratic stability.”

He said the Commission has accredited field reporters through its dedicated portal “because we want you to see everything,” and in return demanded “a commitment to verified, ethical, and dispassionate reporting.”

“Verify your facts before you broadcast. When a glitch occurs in a single polling unit, do not report it as a systemic failure across the entire state,” Prof. Amupitan charged.
“Use your channels to educate voters: remind them that No PVC means No Voting, and that vote-buying remains a criminal offense that our partners at the EFCC and ICPC have been mandated to curb.”

Giving an update on readiness, the Chairman said the just-concluded mock accreditation proved the resilience of the BVAS.
“The Bimodal Voter Accreditation System (BVAS) demonstrated optimal field resilience. On average, it took between 30 seconds to 2 minutes to successfully verify a voter using either their fingerprints or facial recognition,” he stated.
“As a result, we have increased the total number of BVAS for the election from 4,427 to 5,130 so as to service split polling units in large PUs in Ife East, Irewole, Egbedore, Ede North, Osogbo. In the process, we increased the number of back-ups from 664 to 1,328 for quick intervention in case of any malfunction.”

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Prof. Amupitan also addressed insecurity, saying INEC has moved “from reactive monitoring to proactive prevention” through ICCES. He listed hotspot LGAs to include Atakumosa East and West, Boripe, Ede North and South, Ife Central, Ifedayo, Ila, Osogbo, Ifelodun, and Oriade.

On inclusivity, he reaffirmed the Commission’s commitment to vulnerable voters.
“Democracy is incomplete if it excludes vulnerable populations. The Commission has integrated practical assistive devices across polling locations based on our disability mapping in Osun State. We have provisions for braille ballot guides for visually impaired voters; magnifying glasses for voters with albinism and low vision; EC40H poster manifests for hearing-impaired citizens and Priority Voting Queues for Persons with Disabilities (PWDs), pregnant women, nursing mothers, and the elderly,” he said.

The Chairman said 32,000 NYSC members have been engaged as ad-hoc staff via the INECPRES portal and that training for Supervisory Presiding Officers has been concluded.

“We do not care who wins the election; we only care how they win. Our sole job is to ensure that the process is clean, that every valid vote counts, and that the declaration reflects nothing but the true sovereign will of the Osun electorate,” Prof. Amupitan concluded.

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The session had in attendance National Commissioners, the Osun REC Barrister Oluwatoyin Babalola, NUJ and BON leadership, Bureau Chiefs, Editors and other senior media executives.

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Coalition want explanation over alleged BVAS failure in Osun mock accreditation exercise

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A group, aegis of Coalition of Concerned Nigeria Citizens (CCNC), has called on the Independent National Electoral Commission (INEC) to immediately explain the alleged widespread failure of the Bimodal Voter Accreditation System (BVAS) during Saturday’s mock accreditation exercise conducted ahead of the August 15 Osun State governorship election.

The group alleged that the mock accreditation, designed to test the commission’s readiness for the election, experienced significant technical challenges after commencing in selected polling units across the state, raising concerns about INEC’s preparedness for the governorship poll.

In a statement signed by its spokesperson, Comrade Raufu Sodiq, popularly known as “Oluomo Success,” the coalition claimed that although the exercise was scheduled to begin at 8:30 a.m., it started behind schedule in some polling units. It further alleged that less than 40 minutes after the exercise commenced, many BVAS machines stopped recognising fingerprints, facial features and Permanent Voter Cards (PVCs), preventing the successful accreditation of voters in the affected locations.

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Describing the development as disturbing, the group said a mock accreditation exercise should ordinarily boost public confidence in the electoral process, adding that the reported malfunction of the accreditation devices during the test exercise had instead raised questions about the commission’s level of preparedness.

The coalition argued that accreditation remains the foundation of every credible election because it determines voter eligibility and protects the integrity of the electoral process. According to the group, any failure at that stage could undermine public confidence in the outcome of the election if not urgently addressed.

CCNC also queried why such challenges allegedly occurred despite what it described as years of preparation and substantial public investment in electoral technology. It called on the Osun Resident Electoral Commissioner and the national leadership of INEC to provide a comprehensive explanation on the cause of the reported BVAS malfunction and disclose measures being taken to prevent a recurrence during the August 15 governorship election.

Among its demands, the coalition asked INEC to clarify whether the reported glitches resulted from software, hardware or configuration problems, explain its contingency plans for the 3,763 polling units across Osun State, replace any faulty BVAS machines and consider conducting another mock accreditation exercise before the election to restore public confidence.

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“We believe in strong democratic institutions and do not want to see INEC fail. However, public confidence must be built on competence, transparency and accountability. The people of Osun deserve an election where every eligible voter can cast their vote without avoidable technological failures,” the statement read.

The group further urged the Chairman of INEC to personally address Nigerians before the governorship election by explaining the outcome of the mock accreditation exercise, outlining corrective measures and assuring voters that all identified technical challenges would be resolved before Election Day.

INEC had organised the mock accreditation exercise to assess the functionality of the BVAS and other electoral processes ahead of the governorship election scheduled for August 15 across the state’s 3,763 polling units.

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Why I Don’t Beg for Support – Remi Tinubu

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Nigeria’s First Lady, Oluremi Tinubu, has given reasons why she does not beg for support, stressing that she only works with what God provides while encouraging young Nigerians to embrace contentment, hard work and patience.

She made the remarks on Friday at the State House in Abuja while receiving the leadership of the All Progressives Congress (APC) National Youth Wing. During the meeting, she presented brand-new buses to the youth leaders to support their activities ahead of the 2027 general elections.

She explained that the vehicles were donated by individuals who support her initiatives and decided to hand them over to the APC National Youth Wing to enhance their operations.

The First Lady commended the APC youth leaders for their conduct, noting that they had never approached her office with requests for personal assistance.

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She described their attitude as selfless and said she was pleased to support them because the buses would assist them in carrying out their responsibilities.

Mrs Tinubu also advised Nigerian youths against pursuing quick wealth, emphasizing that lasting success is built on diligence, integrity and perseverance rather than shortcuts.

She urged young people to remain disciplined, patient and committed to hard work, noting that laziness does not produce success.

Using the eagle as an example, the First Lady encouraged the youths to develop resilience and determination in the face of challenges.

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She urged them to remain focused on their personal goals instead of comparing themselves with others or becoming discouraged by the achievements of their peers.

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