By Darlington Okpebholo Ray, Truth Live News Correspondent in London.
In a new twist to the ongoing saga surrounding Zenith Bank’s refusal to honour a $64 million contract with Owigs and Obigs Nigeria Limited, Mr. Emeka Okorie, the Chairman and CEO of Owigs and Obigs, has provided more disturbing revelations about the bank’s actions and motivations. In an exclusive interview with Truth Live News on Wednesday in London, Mr. Okorie exposed a series of deceptive practices and malpractices orchestrated by Zenith Bank, which have led to significant financial and reputational damage for his company and raised serious questions about the integrity of one of Nigeria’s leading financial institutions.
The dispute began when Zenith Bank, acting as the Confirming Bank for the international contract, allegedly misled Owigs and Obigs by citing a non-existent policy from the Central Bank of Nigeria (CBN). According to Mr. Okorie, the bank falsely claimed that all foreign transactions, regardless of currency, had to be converted into Naira. However, when Mr. Okorie made inquiries with the CBN, the central bank confirmed that no such policy had been issued.
“We were told by Zenith Bank that there was a new policy from CBN mandating the conversion of foreign transactions to Naira. When I contacted CBN directly, they confirmed that no such policy existed. This was a deliberate lie to manipulate the terms of the contract for their own benefit,” said Mr. Okorie.
As the situation escalated, it became evident that Zenith Bank’s refusal to honour the terms of the $64 million contract was part of a broader scheme to secure financial gain under false pretences. Zenith Bank had already accepted significant commission fees for services it was unwilling or unable to provide, including confirming the Letter of Credit (LC), a critical term of the contract. Mr. Okorie explained that despite knowing they could not fulfil their obligations, Zenith Bank accepted the LC, which was issued based on an approved draft by Zenith Bank. This triggered the preexisting dormant default/liability clause, automatically activating specific damages as outlined in the contract, totalling $42,961,739.88.
“Due to a conspiracy to sabotage the transaction, Zenith Bank took fees for confirmation services they had no intention of providing. This irresponsible and malicious behaviour led to the automatic termination of the international Contract Nos: JYOONL-001/KTTA140415 without remedy, damaging our reputation, and their actions have cost us dearly,” Mr. Okorie revealed.
The plot thickened when Zenith Bank allegedly attempted to force Owigs and Obigs into partnering with a proxy company affiliated with the bank. According to Mr. Okorie, Zenith Bank pressured his company to collaborate with this affiliated firm, which would have allowed them to share profits from the deal, despite having already charged an 11% commission fee on the entire contract.
“When we rejected their proposal to partner with a proxy company, Zenith Bank became even more aggressive, claiming they were entitled to a larger share of the profits, despite already taking their cut. They insisted that we must work with their affiliate, or they would sabotage the contract,” Mr. Okorie revealed.
The refusal to honour the fundamental credit terms of the $64 million contract, along with continued interference by Zenith Bank, did not stop there. Mr. Okorie’s attempts to resolve the matter through legal channels were reportedly blocked by Zenith Bank’s alleged influence within the Nigerian judiciary. Mr. Okorie claimed that the bank leveraged its connections to avoid accountability, obstructing any efforts to amend the contract and shift responsibility for the breach to the bank, where it rightfully belonged.
“We tried to take legal action, but Zenith Bank used its influence within the judiciary to block our efforts. They even attempted to shift the blame onto us, despite being the ones who caused the breach. This kind of malicious conduct is not just unprofessional, it’s criminal,” Mr. Okorie stated.
The financial and reputational impact of Zenith Bank’s actions extends beyond Owigs and Obigs. As the bank’s behaviour becomes more widely known, it casts a shadow over Nigeria’s financial sector, raising concerns among international investors and businesses. The conspiracy to breach a multi-million-dollar contract and the bank’s alleged manipulation of the system have the potential to severely damage Nigeria’s credibility in the global business community.
“Zenith Bank’s actions are not only affecting our business but also jeopardising Nigeria’s standing in the international market. How can international businesses trust Nigeria’s financial institutions when one of its leading banks engages in such unethical and deceptive practices?” Mr. Okorie asked. “This is a serious blow to Nigeria’s reputation as a business hub, and it must be addressed.”
Efforts by Truth Live News to reach the Managing Director and CEO of Zenith Bank, Ms. Adaora Umeoji, for comment were unsuccessful. Calls to her mobile phone and text messages went unanswered, leaving the bank’s side of the story unaddressed. This lack of transparency only raises more questions about the integrity of Zenith Bank’s actions and intentions.
The case has brought to light troubling concerns about corporate malfeasance and the lack of accountability within Nigeria’s banking and legal systems. The impact on Nigeria’s global reputation cannot be overstated, as it sends a message to international investors that doing business with Nigerian financial institutions may involve significant risk. As the saga continues to unfold, the international business community will be watching closely to see whether Zenith Bank is held accountable and if the Nigerian legal system will rise to the occasion in defending the principles of transparency, fairness, and justice.
“This is about more than just our contract; it’s about restoring integrity to Nigeria’s financial system. We cannot afford to let such behaviour go unchecked,” Mr. Okorie concluded.
©TLN