Femi Otedola, a 43 years old Nigerian businessman once listed as one of the richest billionaires in the world (2009) by Forbes is in the eye of financial storm over the monumental debt he owes five banks in Nigeria.
The total debt of Mr. Otedola, the chairman of Zenon Oil is about 168 Billion Naira (Over 1 billion US dollars) as at December 2010.
A quick break down of the debt portfolio shows that Otedola and his companies are owing with Zenith Bank N68 Billion, while the one of GTBank is stood at almost 31 Billion Naira, FCMB says Otedola is owing close to 19 Billion Naira while that of Access Bank Stood at N15.526 Billion Naira. The one of UBA reads N36.862 Billion.
gistmaster.com learn that some of the banks are always making moves to take over his property in highbrow Victoria Island, Ikoyi,Abuja, Port Harcourt and other places. The shares also use as collateral for the loan will also go into it. At the moment, the total asset used as security for the debt is said to be worth about N70 billion.
Otedola’s group claim that banks have over inflated the debt and also made some illegal and fraudulent deductions from their account.Already, Otedola has headed to court, where he hope to get a reprieve. He and his companies want a situation where the bank who grant an independent auditor the privilege to look into the various accounts and find out whether or not, what the banks are claiming as debt are the right figures.
A bank official told gistmaster.com last night that Otedola and Zenon Oil is only using delay tactics. Debt like this can affect banks when they are not paid back. This has led to the collapse of many banks. Did he go to court when he was seeking the loan? We know that the court will give the right verdict.
Always prim and proper in his traditional white attire, Otedola is the son of former governor of Lagos State, Sir Michael Otedola. The businessman used to be close to Alhaji Aliko Dangote before things fell apart between them over a business deal. Otedola’s love for Mercedes Benz brand of cars his legendary. He belongs to an elitist boat club with the likes of Jim Ovia, Dangote and others. A top financial of the Peoples Ruling Democratic party (PDP),Otedola also supports Polo game in Nigeria.
Aside property in choice areas,shares said to have been used for the loan are listed below-
1.441 Billion Units of Zenith Bank shares
24.813 million Units of MRS Oil
14.163 million Shares of Mobil Oil
159.395 million shares units of AP (African Petroleum) Plc
67.053 million shares unit of AP PLC
1.775 million shares units of MRS Oil
36.4 million shares of AP PLC