Again Access Bank in N1bn loan scandal as Obanikoro alleges fraudulent collateral use

Access Bank faces a legal storm as Gbolahan Obanikoro alleges his property was fraudulently used as collateral for a N1bn loan without consent

[dropcap]N[/dropcap]ew revelations have surfaced regarding how Access Bank allegedly granted a N1 billion loan to DDSS International Company Limited using a property owned by MOB Integrated Services, managed by Gbolahan Obanikoro, as collateral without his knowledge or consent.

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Insiders disclosed that the property at 40B Bourdillon Road, Ikoyi, Lagos, was initially used as collateral for a N193,139,200 loan granted to Balmoral International Limited by Diamond Bank on May 21, 2013. This credit facility, referenced AOB/BB/VO/AD/031/05/2013, comprised a N120 million term loan and a N20 million import duty facility.

The loan had a 180-day tenure with an interest rate of 20% per annum, secured by a third-party legal mortgage on the property.

However, long after Balmoral had fully repaid the loan, the same property was allegedly used as collateral for a fresh N1 billion loan to DDSS International Company Limited on May 16, 2019, without Obanikoro’s knowledge.

The loan was sanctioned through an offer letter signed by Bukola Shoyombo, a Relationship Officer in Access Bank’s Business Banking Division, and Oreoluwa Roy-Egbokhan, a Relationship Manager.

The stated purpose was to finance the purchase of luxury vehicles for sale to individuals and corporate organisations. The loan had a 60-month tenor with a 15% per annum interest rate, subject to market conditions.

The offer letter claimed the collateral was a “comprehensive third-party legal mortgage on property located at 40B Bourdillon Road, Ikoyi,” asserting that the property was already in the bank’s custody and its legal perfection was completed.

However, sources confirmed that neither the property owner nor MOB Integrated Services had any relationship with DDSS International, making the loan technically unsecured.

Following a formal complaint of fraud, the Lagos State Government filed charges against Access Bank’s Managing Director, Bolaji Agbede, and three others.

The charges, presented before Justice Ibironke Harrison of the Lagos State High Court, Tafa Balewa Square, included conspiracy, stealing, and attempted theft. The defendants—Adejare Adegbenro, Managing Director of Balmoral International Limited; Balmoral International Limited; Access Bank; and DDSS International Company Limited—were accused of using MOB Integrated Services’ property as security for a loan without the owner’s consent and entering into a consent judgment fraudulently.

The charge sheet detailed allegations under Section 411 of the Criminal Law, Ch. C17, Vol. 3, Laws of Lagos State, 2015.

The prosecution accused the defendants of conspiring to steal the property by unlawfully using it to secure a credit facility. Additionally, an attempted stealing charge under Section 21 of the same law was levied against them for their actions on May 26, 2019.

Justice Harrison, responding to the defendants’ repeated failure to appear for arraignment, issued a bench warrant for their arrest. Prosecuting counsel Uthman Rilwan informed the court that despite receiving formal notice, the accused failed to present themselves.

Consequently, the judge directed law enforcement to execute the arrest warrant against the principal officers of the defendant companies and adjourned proceedings until February 24, 2025.

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The unfolding legal battle has raised concerns over banking ethics and regulatory oversight, particularly regarding third-party legal mortgages. Observers believe this case could set a precedent for similar financial misconduct cases in Nigeria’s banking sector.