Zenith Bank under Ovia and Emefiele: Alleged Epicenter of Corruption

Authored by Seyi Oduyela, Washington DC.

Documentation from the Economic and Financial Crimes Commission and the Police Special Fraud Unit paints a concerning picture of Zenith Bank allegedly serving as a haven for corrupt practices, particularly involving influential figures. This expose by Seyi Oduyela unveils how, under the leadership of Jim Ovia and Godwin Emefiele, Zenith Bank allegedly facilitated financial misconduct, aiding individuals like Peter Odili and Bukola Saraki in diverting funds from state treasuries.

Zenith Bank stands as one of Nigeria’s largest banks, boasting a million shareholders and holding the position of the largest tier-1 bank in the country. Co-founded by Jim Ovia in May 1990, it transitioned into a public limited company in June 2004, and its shares are currently traded on the London Stock Exchange. Operating with its headquarters in Lagos, the bank spans 350 branches and business offices across Nigeria and internationally in locations like the UK, South Africa, Sierra Leone, and the Gambia.

Despite its prominence, Zenith Bank has remained under scrutiny by various security agencies in Nigeria due to allegations of fraudulent activities, both perpetrated by its employees and through the bank’s purported involvement in treasury embezzlement by corrupt politicians.

In 2011, the Police launched an investigation following a petition from Joy Petroleum management, citing denial of account access due to an alleged unauthorized change of signatories. The inquiry revealed transactions where Zenith Bank, under Jim Ovia and Godwin Emefiele, allegedly issued a bank draft of 160 million Naira to Dr. Bukola Saraki, a non-customer of the bank. Notably, Saraki reportedly obtained this loan without holding any accounts with Zenith Bank, raising questions about the bank’s lending practices.

The investigation delved deeper, uncovering a 200 million Naira loan granted to Joy Petroleum Ltd. by Zenith Bank. Further inquiries were made regarding the source of the 160 million Naira draft, leading to conflicting statements and revelations linking Dr. Bukola Saraki as the customer responsible for the purchase of the draft in Joy Petroleum’s name.

Despite requests for clarity from the Police, Zenith Bank’s responses seemed to create more ambiguity. The bank provided documents showcasing transactions but failed to fully account for the account into which Saraki’s loan was disbursed or offer conclusive evidence of Saraki’s direct involvement in operating the internal ledger account. The investigation was hindered when former President Goodluck Jonathan intervened, preventing the Police from concluding their inquiry and subsequently led to the Attorney General advising against prosecuting Saraki and others implicated in the bank issue.

This incident isn’t an isolated one for Zenith Bank. In 2013, the National Examination Council (NECO) reported 300 million Naira missing from its Zenith Bank account, which led to an ongoing investigation involving alleged involvement of Zenith Bank employees in the disappearance of funds.

Moreover, an EFCC investigative report sheds light on the alleged embezzlement by Dr. Peter Odili, former Governor of Rivers State, revealing staggering amounts pilfered from the state treasury. The report exposes questionable cash withdrawals made through Zenith Bank’s Government House account, indicating a pattern of unrecorded and unauthorized transactions.

The scope of this alleged corruption implicates multiple individuals and entities beyond Odili, hinting at a wider network involved in financial malfeasance.