Chairman of Zenon Petroleum and Gas Limited and Forte Oil Plc, Mr. Femi Otedola





By Obinna Chima

The Chairman of Zenon Petroleum and Gas Limited and Forte Oil Plc, Mr. Femi Otedola, has paid up his outstanding debt of N140,999,620,395.80 owed the Asset Management Corporation of Nigeria (AMCON), THISDAY learnt Sunday.



Managing Director/Chief Executive Officer, AMCON, Mr. Mustafa Chike-Obi, who confirmed to THISDAY, revealed that the corporation had reached a settlement with Otedola, and that the AMCON board met last Thursday and approved the transfer of the businessman’s assets as well as an undisclosed sum of cash to AMCON as full and final settlement for his liabilities.

He however declined to disclose the assets that were transferred to AMCON, citing the confidentiality agreement binding the transaction, but explained that a proper valuation was undertaken by a valuer appointed by the corporation to assess Otedola’s economic and landed assets.



The Central Bank of Nigeria (CBN) had in a move aimed at strengthening financial stability and instilling discipline in the banking sector, blacklisted Otedola, Zenon and 112 other companies as well as their principal shareholders and directors where the outstanding value of the loans purchased by AMCON amounted to N5 billion or more from taking further credit from banks, until full liquidation of the agreed indebtedness.

The list had revealed Otedola as the biggest debtor to the corporation from bank loans of N192, 422, 889, 943. 56, which was acquired by AMCON at an agreed price of N140, 999, 620, 395. 80.
The board meeting, Chike-Obi further explained, came on the heels of the Executive Committee (EXCO) and Credit Committee meetings of AMCON, which took place last Monday to consider and approve Otedola’s repayment terms as full and final settlement of the amount owed the corporation.



He added: “This is a positive development as the settlement by the biggest debtor to AMCON showed that there are no sacred cows because even a prominent businessman like Otedola has come out to settle.”

Chike-Obi said reaching this stage with Otedola involved over six months of long-drawn out meetings and negotiations with the businessman during which his assets had to be valued by an independent valuer to ensure that they matched his debts.



However, a reliable source who was abreast of the payment terms, but pleaded to remain anonymous, gave a breakdown of how Otedola accumulated the huge debt, saying that Zenon, after taking a syndicated loan from five banks, was adversely affected by the global economic downturn in 2008.

According to him, Zenon lost N75 billion when oil prices fell from a peak of $147 a barrel, N40 billion through currency devaluation, N25 billion in the capital market, and N50 billion as a result of accrued interest and penalties charged by the banks on the facility.



“Zenon Petroleum has paid AMCON the full and final settlement of its obligations/loans to some Nigerian banks, which was bought over by AMCON in May 2011,” the source said.

He pointed out that Otedola had decided a while ago to let go of his assets and start on a clean slate, adding that the businessman had accumulated a stack of court injunctions against the banks when they went after him for their money.



“So for all parties, this is a way out to get their money and settle all the cases once and for all,” he said.

Also, a CBN official, who confirmed the settlement reached between AMCON and Otedola, described it as a positive development, stating: “Given that he (Otedola) had the highest exposure to the banking system and posed a systemic risk, we are pleased that he has settled his obligations.”

http://www.thisdaylive.com/articles/otedola-pays-off-n141bn-amcon-debt/126521/

Major kudos to Sanusi...

GEJ take note. One more GCON to confer next year.

Russian & Nigerian billionaires...I av the least respect for them!

So all dis money dey ground?

And AMCON can't even borrow me common 10K to start my little bizness......SMH .....naija.

he wanted to be a good bad guy of nigeria economy,na him sabi.

Ranks007: Russian & Nigerian billionaires...I av the least respect for them!

At least let us praise him for paying up and a very big hammer on the greedy bankers that like to risk people's life savings to all these criminals parading themselves as "Sudden Billioniers.

Ranks007: Russian & Nigerian billionaires...I av the least respect for them!

what makes US billionaires deserves more respect ,and russian billionaires less respect?
Nonsense.

O T E D O L L A R

Otedola repaying that huge amount of money either in cash or assets is a highly unlikely scenario,I feel the debt was written off due to his connection to the presidency and some top government officials who might have benefited from him.

AMCON has failed the first test of transperency,it is a public institution and the money in question belongs to the public ( depositors and shareholders of the banks Otedola and co ran down),so it behoves on AMCON to make public the assets which was forfeited by Otedola.

The freedom of Information act should be invoked to expose the shady deal behind this settlement.

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forget the theatrics & semantics! Otedola is a Federal govt pikin & d F.G has picked his bills.
Some animals are more equal than others in this contraption.
Which assets did otedola forfeit to AMCON & how much is he worth after d forfeiture?....Chike-obi, over to you.

slyopez: And AMCON can't even borrow me common 10K to start my little bizness......SMH .....naija.

AMCON does not lend money.

Charles.nerd:
Otedola repaying that huge amount of money either in cash or assets is a highly unlikely scenario,I feel the debt was written off due to his connection to the presidency and some top government officials who might have benefited from him.

AMCON has failed the first test of transperency,it is a public institution and the money in question belongs to the public ( depositors and shareholders of the banks Otedola and co ran down),so it behoves on AMCON to make public the assets which was forfeited by Otedola.

The freedom of Information act should be invoked to expose the shady deal behind this settlement.

my brother, why would u not believe that there was transparency? Why would you not believe that the dude has finally paid up. Why would you just choose 2 believe that sumtin shady must hav happnd. Cnt we just believe in posiivity.

slyopez: And AMCON can't even borrow me common 10K to start my little bizness......SMH .....naija.

Lol. come collect but i charge 100% interest oh

.

THIS ARTICLE HIGHLIGHTED THE POSSIBLE WAYS FEMI OTEDOLA COULD PAY HIS DEBT.. IS THAT HOW IT HAPPENED?

http://naijastartups..com/2012/09/how-could-femi-otedola-pay-back-12.html

I highly doubt if a business man will want to drop such money whether cash or asset within this timeframe. I believe some kind of deal must have been reached.

slyopez: And AMCON can't even borrow me common 10K to start my little bizness......SMH .....naija.

AMCON doesn't give small scale loans. Approach YOUWIN.

my fellow countrymen ,u have to understand that there is a larger picture to every thing that happens in naija,no business man pays up all his debts at once and not even as large as the one otedollar just paid .that is even if it is true that he has paid ,you must learn never to trust any govt organ or their dealings wit nig politicians ,just wait and see the real picture and reason for all this allegedly gargantua payment ,it will soon unfold it is just a matter of time.why is this supposedly payment when ppl are shouting against the inclusion of his company among the prefered bidders?
NEVER TRUST OR BELIEVE ALL THAT YOU ARE TOLD BY GOVT ORGANS

onatisi: my fellow countrymen ,u have to understand that there is a larger picture to every thing that happens in naija,no business man pays up all his debts at once and not even as large as the one otedollar just paid .that is even if it is true that he has paid ,you must learn never to trust any govt organ or their dealings wit nig politicians ,just wait and see the real picture and reason for all this allegedly gargantua payment ,it will soon unfold it is just a matter of time.why is this supposedly payment when ppl are shouting against the inclusion of his company among the prefered bidders?
NEVER TRUST OR BELIEVE ALL THAT YOU ARE TOLD BY GOVT ORGANS

shut up ur dirty mouth. My yoruba man pay d debt wether cash/asset, unknown.bt payment witns by CBN oficia. I nw pray 4 separatn of ds contry into 3,ds yorubas av money,(adenuga 1st,otedollar 2nd,jimoh ibrahim 3rd.dangote nowhere to fond again).if nig. Separate is hausa pple wl sofer most,continu kilin ursef wt boko hamar,pply wt silly mentality

Let AMCON comes out with the list and current market values of the properties handed over to it by Otedola.

Knowing what we know about Naija Govt. officials and businessmen, there is something fishy here.

phemybof: shut up ur dirty mouth. My yoruba man pay d debt wether cash/asset, unknown.bt payment witns by CBN oficia. I nw pray 4 separatn of ds contry into 3,ds yorubas av money,(adenuga 1st,otedollar 2nd,jimoh ibrahim 3rd.dangote nowhere to fond again).if nig. Separate is hausa pple wl sofer most,continu kilin ursef wt boko hamar,pply wt silly mentality

i will leave other contributors to judge ur mentality with what u have written down.but pls before u join any issue ALWAYS TRY TO LEAVE ETHNIC SENTIMENTS OUT OF IT,that will show a little bit of intelligence on ur part .and by the way i am a yoruba manhow did u come about the notion that adenugais the richest yoruba man and that otedolla is second?i think u are a secondary school student ,because it will be a great dissapointment if u happen to be an undergraduate ,i dont want to even think of u as a graduate with what u have wriiten down.are you their adenuga accountant to know how much he has,so withing the confinesof ur mentality a debtor can be second richest?infact exchanging points with u is totally useless.good morning.

phemybof: shut up ur dirty mouth. My yoruba man pay d debt wether cash/asset, unknown.bt payment witns by CBN oficia. I nw pray 4 separatn of ds contry into 3,ds yorubas av money,(adenuga 1st,otedollar 2nd,jimoh ibrahim 3rd.dangote nowhere to fond again).if nig. Separate is hausa pple wl sofer most,continu kilin ursef wt boko hamar,pply wt silly mentality

my god i just noticed this guy english is woeful,this is terrible ,is this the kind of graduate nigerian institutions are producing now ?gosh horrible english.guy it is boko haram and not hamar at least that isnt english language now.oga ooooooo aaaaaa

ooseven: ...by the way, how far with the Farouk matter, e be like say people don dey forget o.

i told u then,it was all a game ,farouk will soon be recalled back to the house you will see and dont forget he is still collecting his salary ooooo

Until they come to the open with the list of assets forfeited and the actual amount of money paid,all I can say is this is just a propaganda.Its a face saving excercise to justify the inclusion of his company as one of the preferred bidders for PHCN.Chike Obi and Co,what is worth doing is worth doing well.NEVER BELIEVE ANYTHING IN NIGERIA IF THE FACTS ARE SHROUDED IN SECRECY.

I don't believe diz, there's more to this story that meets the eye. If he can pay N142 billion naira then how much is he really worth cos am sure his worth is not more than 1billion dollars

solomon111: what makes US billionaires deserves more respect ,and russian billionaires less respect?
Nonsense.

Were you asleep during the 90s? Most Russian billionaires made their wealth through plundering their own country. Buying government properties for a song using political connections.

You respect such men more than say the Walton family (Walmart), Zuckerberg (Facebook), Sergiy Brin (Google)?

phemybof: shut up ur dirty mouth. My yoruba man pay d debt wether cash/asset, unknown.bt payment witns by CBN oficia. I nw pray 4 separatn of ds contry into 3,ds yorubas av money,(adenuga 1st,otedollar 2nd,jimoh ibrahim 3rd.dangote nowhere to fond again).if nig. Separate is hausa pple wl sofer most,continu kilin ursef wt boko hamar,pply wt silly mentality

smh! See what our poor educational system have caused.