An Otedola debt to the banking industry has remained for a while owing to unpaid since 2009.

You recall that he owes Zenith Bank Plc N68.110 billion till date and this is one of the reasons they took over his Zenon office on Ajose Adeogun Street.

He also owes United Bank of Africa Plc (UBA) the sum of N36.863 billion till date.

He has no capacity to meet his obligations and this public show of force and mis-direction is simply a ploy to cover up what the industry has decided to rid itself off.

People cannot make promises and simply chose not to pay.

Here is a confidential email correspondence between top UBA executives.

From: @ubagroup.com>
To: @ubagroup.com>
Sent: Wed, Mar 4, 2009 11:14 am
Subject: Speaking with Femi Otedola

Good Morning Sir,

I had a discussion with FO on the various outstanding on his account and the prospect of new businesses despite the huge debit. This was based on my plea to Akin to intervene on our behalf as we cannot reach him and it appears Busola is clueless as to what to do or say. From his analysis, he seemed confident that he is capable of repaying but he needs time.

He claims he had exchange losses of up to N16bn which affected them but they are still importing and have cargoes worth N23bn yet to be discharged; shipped. He also expects that they will make a profit of N800m per cargo. He also claims that he is trying to recover some money from the FG on the importation of DPK in the region of N17bn. On net worth within the oil industry, he says he has shares worth N70bn on AP, N12bn on Chevron and N5bn on Mobil.

I guess these values would have diminished.

On possible repayment sources aside from the N800m per cargo, he said the following sources are available to him:

Payment from AP via PPPRA amounting to N11bn.

Income from Dividend on shares amounting to N20bn

Profit from Fineshade UK per month between $6-7M Rental income on properties per year amounting to N2bn.

Rental income from AP on Walter Carrington at N5bn for 8 years.

However, it appears that FO is fond of overvaluing his assets and I am not sure if they have been used as collateral with other banks. There’s also the issue of the AFC certificates which he claims have not been delivered to him even though other shareholders have received theirs.

He had tried talking to PO on my prompting but his line was off and I found that he was airborne at the time. I have told him I will give both you and PO his number so that you both can talk to him.

Please Sir, you can stress the fact that they need to make substantial payments like his competitors are doing and enquire about the AP rental as I was not sure whether he said he had collected the money or that they were to pay him.

Lastly, he said that Zenith has restructured his loan of about N30bn for about 3 years and have given him fresh funds to trade hence the bids we are seeing. This, he was able to do with the outstanding of JIM which UBA does not have.

His number is 080X Bleep XXXX. Thanks

Family portrait painting session of Femi Otedola.
Medium: Oil on Canvas
Artist: Ayeola Ayodeji Awizzy