Why Femi Otedola Dragged Jim Ovia’s Zenith Bank To Court

Femi Otedola, a billionaire and a well-known business magnate in Nigeria, has reportedly filed a lawsuit against Zenith Bank Plc.

Jim Ovia, the Chairman of the bank was also dragged to court not only for illegal and unauthorized charges in its account but also for the illegally and forcefully recovering his shares in Zenith Bank.

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In suit No: FHC/L/Cs/425/24 dated 6th March 2024, where Zenith Bank, Quantum Zenith Securities, Veritas Registrars, and Central Securities Clearing System are joined as defendants, Otedola is seeking the court’s relief to make the following orders;

1. An order directing Zenith Bank plc to refund the sum of N205,346,573 which was wrongfully debited on 27th January 2011 from the account of Zenon Petroleum Limited account 1010385211 plus accrued interest.
2. An order directing Zenith Bank Limited to release, return, and credit to Zenon Petroleum Limited forthwith their of Zenith Bank shares totaling (1,300,000,000) One billion, three hundred million shares being shares illegally stolen from Zenon in 2011.
3. An order of perpetual injunction restraining Zenith Bank and other defendants from further withholding, selling, transferring, trading, and registering the shares of Zenon Petroleum Limited.
4. An order directing Zenith Bank plc and the co-defendants jointly and severally to pay and or remit the total sum of N88 Billion being unpaid dividends accrued on the shares of Zenon Limited illegally recovered by Zenith Bank plc from 2011 to date.
5. An order directing the defendants jointly and severally to pay accrued interest at the rate of 10 percent per annum on the sum of N88 Billion from April 18th, 2012 until judgment is delivered.
6. An order directing the defendants to refund any wrongful debits and pay the plaintiff accrued and unpaid dividends on the account and shareholding of Zenon Petroleum to be determined by an independent audit firm.
7. The Plaintiff also requested the court to grant it damages of N800 million.

Zenon Petroleum Ltd Sources Say Zenith Is Seeking Out Of Court Settlement

Authoritative sources at Zenon Petroleum Limited have disclosed that Zenith Bank plc has approached Zenon with a request for a Court settlement. However, Zenon has firmly declined this proposition, asserting its preference for a Judicial pronouncement.

This decision stems from Zenon’s belief that Zenith Bank plc has a track record of engaging in unauthorized manipulation of customers’ accounts.

The source also confirmed that investigations are on to determine whether Jim Ovia was the eventual beneficiary of the shares illegally recovered from Zenon and how Jim Ovia paid for the shares, which is believed, may have been recovered without payment for them.

What To Know

Femi Otedola is currently the most substantial shareholder in FBN Holdings Plc, with a shareholding of 5.57%. Before this appointment, he was appointed to the Board of FBN Holdings as a Non-Executive Director on August 15, 2023.

He is also the major shareholder in Geregu Power Plc where he holds a 78.64% direct and indirect shareholding.

The business mogul, one of Nigeria’s few USD billionaires has a rich history of business and enterprise in Nigeria, having been appointed as a member of the Governing Council of the Nigerian Investment Promotion Council in January 2004. He also served as the Chairman of Transcorp Hilton Hotel, Abuja.

He began his foray into the oil and gas sector with Zenon Petroleum and Gas Limited, after which he acquired African Petroleum Plc (AP) in May 2007. AP became Forte Oil Plc in 2010.

In 2018, Otedola divested from Forte Oil Plc and acquired shares in Amperion Power Distribution Company Limited, an SPV that he used in acquiring majority shares in the 414 MW Geregu Power Plant (now 435 MW).

Otedola also owned shares in Zenith Bank Plc before it was reportedly stolen by the bank which made him drag the financial institution to the court.

The billionaire has real estate assets in Lagos, Dubai, London, and Monaco. He made a re-entry into the Forbes’ Billionaires List this year, after a seven-year hiatus.