Jim Ovia sued over appointment of Onyeagwu as Zenith Bank MD

Zenith Bank Chairman Jim Ovia has been sued over the appointment of Ebenezer Onyeagwu as Zenith Bank MD.

A civil society group identified as the Transparency Advocacy for Development Initiative (TADI), has sued the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, the Founder/Chairman of Zenith Bank Plc, Jim Ovia and 4 others over the appointment of Ebenezer Onyeagwu as the Managing Director/Chief Executive Officer of the financial institution, who’s allegedly associated to the Founder.
A suit filed on Thursday, January 14, 2021 and marked FHC/ABJ/CS/29/2021, Abiodun Babalola, the counsel to TADI, claimed that Onyeagwu’s emergency as Zenith Bank MD was an aberration and a violation of the Code of Corporate Governance for Banks and Discount Houses in Nigeria, which kicked towards the appointment of blood relations to the place.

The counsel to TADI requested the Federal High Court sitting in Abuja to declare that by the true interpretation of Section 2.3.3 of the Code made by Central Bank of Nigeria in May 2014 pursuant to the powers bestowed on it by the Central Bank of Nigeria Act, 2007 and Banks and Other Financial Institutions Act, 1991 the appointment of Onyeagwu, as the Managing Director/Chief Executive Officer of Zenith Bank Plc is in gross contravention of the mentioned Code.
Additionally, Babalola sought a declaration ‘that Ebenezer Nduka Onyeagwu joined as 2nd Defendant in the suit is unqualified based on Section 2.3.3 of the aforesaid Code to be appointed as Managing Director/Chief Executive Officer of Zenith Bank Plc being the 3rd Defendant by virtue of his blood ties and or relationship with Jim James Ovia, that is the 1st Defendant.’

Similarly, Babalola urged the ‘honourable Court to make an order directing the Central Bank of Nigeria (CBN) led by Godwin Emefiele to forthwith exercise its powers under the Banks and Other Financial Institutions Act, 1991 as well as other extant laws by relieving the 2nd Defendant of his appointment as Managing Director/Chief Executive Officer of Zenith Bank Plc on account of his blood ties and or relationship with the 1st Defendant and replacing him with another qualified person.’
Babalola demanded that order of exemplary damages in the sum of N1 billion be made towards the Central Bank of Nigeria and its Governor, ‘sued as the 4th and 5th Defendants respectively, being the apex authorities regulating the financial activities and operations of Banks and other Financial Institutions in the country for approving the appointment of Ebenezer Nduka Onyeagwu as Managing Director/Chief Executive Officer of the 3rd Defendant on 1st June 2019 even when they were aware that he lacked the qualification to occupy the said position due to his blood ties and or relationship with the 1st Defendant.’

The counsel to TADI stressed that the resolution of its shopper, TADI, to hunt authorized redress “was based mostly on his mandate to work with related stakeholders for functions of preventing corruption in any establishment that holds the public belief, spends public funds or is regulated by authorities companies such as the Central Bank of Nigeria.”