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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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Video: Watch moment Senator Manu tasks NAFDAC officials on poor budget presentation

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The Senator representing Taraba Central, Manu Haruna white washed officials of NAFDAC for poor budget presentation during 2025 budget defense on Friday.

In a video, Senator Manu a former Deputy Governor of Taraba State opened the underbelly of NAFDAC on improper presentation of figures in the outlines.

He pointedly told the officials that the presentation was designed to mislead senators.

Watch video below:

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Why I returned N100m excess fund to Kano Govt Commissioner

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The Kano State Commissioner for Local Government and Chieftaincy Affairs, Alhaji Tajo Othman, who was recently in the news for returning N100 million excess fund to the state government, has revealed the reason behind his action.

The commissioner while addressing newsmen in Kano on Friday said his action was influenced by the state governor’s “exemplary leadership style,” adding that in an ideal situation, leaders are always a pace setter for others to follow.

He said he did not expect Governor Kabir Abba Yusuf to reveal the act to the public, but the governor chose to do so during the flag-off of the free uniform distribution to encourage the future generation to be transparent.

He said, “In an ideal governance setting, the leader is a pace setter for others to follow. We have seen the governor’s body language and as such we fall in. That is what exactly happened. it is the wish of the governor that everybody should be as transparent as possible.

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“He is a transparent governor and therefore we should be transparent as well. I never expected the governor to go public with it, but I believe the reason behind his announcement is indeed genuine.”

The commissioner added that as the head of the committee for school uniform distribution, the state governor entrusted him with the task and advised the committee to execute it to the best of their ability.

The commissioner who was a retired customs officer was in the news when the Governor Yusuf publicly commended him for returning N100 million in unspent funds from a N2 billion budget earmarked for the production of 798,000 uniforms for pupils of primary 1 in the state.

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Nigerian Online Population Shows Strong Enthusiasm for AI – Report

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A new global survey report from Ipsos and Google has shown widespread use of Artificial Intelligence (AI) tools among Nigerian online population.

The study, tagged: “Our Life with AI: From Innovation to Application,” surveyed 21,000 people across 21 countries, and observed that global AI usage has jumped to 48 per cent and excitement about its potential now exceeds concerns (57 per cent vs. 43 per cent, up from 50 per cent / 50 per cent last year).

According to the report, in Nigeria, AI adoption and enthusiasm are even higher, as 70 per cent of the Nigerian online population used generative AI, surpassing the 48 per cent global average. Moreover, 87 per cent are excited about AI’s potential and see its benefits outweighing the risks.

Analysing the report, President of Global Affairs, Google & Alphabet, Kent Walker, said: “AI is starting to deliver magic at scale, making people’s lives easier and better. The survey results show the more people use these tools, the more excited they get about the possibilities and about the personal, professional, and scientific breakthroughs on the way.”

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The survey results indicate that optimism about AI is growing within the surveyed online community in Nigeria. Key findings from the survey, show that among survey participants in Nigeria, 70 per cent reported using generative AI in the past year, which is significantly higher than the global average of 48 per cent. A substantial 87 per cent of Nigerian respondents feel that AI’s potential benefits outweigh the associated risks, suggesting a strong belief in the positive impact of AI. A significant 81 per cent of surveyed Nigerian adults believe AI will positively change the economy.

Furthermore, 90 per cent of the survey respondents in Nigeria anticipate AI having a positive impact on science and medicine, demonstrating the widespread belief in the potential of AI to drive progress in these sectors.

According to the report, Nigeria’s online population demonstrates a higher level of excitement and adoption of AI when compared to other regions. The survey indicates: Nigeria is among the top countries in terms of AI usage and excitement about its potential.

This contrasts with more cautious sentiment in some European and North American countries.

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The report also said the Nigerian online community saw immense potential for AI in science and medical advancements:

“A significant 90 per cent of survey respondents expect AI to have a positive impact on science and medicine. This is one of the highest rates globally, highlighting the strong anticipation of breakthroughs in these fields through AI,” the report said, and onlinerd that the population in Nigeria recognised AI’s potential to enhance personal and professional development:

“Many believe AI can make people’s lives better by boosting productivity and providing access to resources. Within the Nigerian online population surveyed, there is a prevailing sentiment that supports the fostering of AI advancement rather than restrictive regulations. This suggests that those surveyed are keen to embrace innovation,” the report further said.

The survey results highlight the strong enthusiasm and optimism of the surveyed online population in Nigeria about the role of AI in various aspects of life, particularly in the economy, healthcare, and scientific advancement. The findings suggest that Nigeria’s online community is among the most enthusiastic globally about the transformative potential of AI.

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Google has been pursuing AI boldly and responsibly for years. In 2018, Google was one of the first companies to establish AI Principles grounded in beneficial use and avoidance of harm. Two years ago, it unveiled its opportunity agenda, which shard concrete recommendations for governments to ensure AI benefits the broadest range of people possible.

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