Zenith Bank’s ‘Fraudulent Transaction’ Allegation: Billionaires Femi Otedola, Jim Ovia Opt For Out-of-Court Settlement

Femi Otedola, chairman of FBN Holdings and principal owner of Geregu Power, has settled his dispute against Zenith Bank, which was previously filed before a Federal High Court.

Multiple sources disclosed that, Otedola’s withdrawal from the court case follows a recent understanding between the billionaire and the founder of Zenith Bank, Jim Ovia, after representatives from both parties attempted to settle the matter.

Otedola had made several allegations against the bank about Zenon Petroleum & Gas, and other related firms. Some of the allegations were widely reported by the media.

According to Premium Times, which first reported the dispute and the subsequent resolution, court papers revealed that the Federal High Court of Nigeria, Lagos Division, dismissed the case on Thursday, 13 June.

This decision came after the court received a notice of discontinuance from the plaintiffs, who had initially filed the suit against the lender on 12 March.
The plaintiffs in the case were Zenon Petroleum & Gas Limited, Seaforce Shipping Co. Limited, Luzon Oil & Gas Limited, Garment Care, and Mr. Otedola.

The defendants were Zenith Bank, Quantum Zenith Securities & Investment Limited, Veritas Registrars Limited, and Central Securities Clearing System Plc.

Reliable sources informed Nairametrics that both parties agreed to settle the matter out of court following a high-level meeting between top representatives of both sides. This led to an out-of-court settlement, which the judge eventually endorsed.

The paper reports; “the dispute has now ended with the settlement reached and the case being withdrawn from the court. The ability of both parties to settle the issue amicably and out of court is a significant boost to dispute resolution processes, especially given the speed at which the matter was resolved”.