Lomé, September 24, 2024 – (©AfreePress)- Is Ecobank acting in good faith in this matter, or is it trying to shift blame onto a third party for something it didn’t do? How can we unravel the truth? Let’s investigate.
In a new episode shaking Nigeria’s financial sector, a complex conflict has erupted between Wilben Trade Limited and Ecobank Nigeria. The dispute, which arose following an international banking transaction, has taken a dramatic turn, drawing not only the two parties into the fray but also dragging in the Central Bank of Nigeria (CBN).
The background : A business deal turned major dispute
The core of the issue dates back to 2014-2015 when Wilben Trade Limited was approached by Ecobank Nigeria to facilitate two commercial transactions. These transactions were meant to enable a Nigerian company, Agrico Agbe Ltd, to purchase rice from Little Rose Trading LLC, an international trading company.
To facilitate these purchases, Ecobank issued two letters of credit to Wilben Trade: one for $22,485,900 and another for $20 million, totaling about $42 millions or 25 billion FCFA.
Wilben’s role seemed straightforward: act as an intermediary between the buyer (Agrico Agbe) and the seller (Little Rose). Wilben was to cash the letter of credit through a partner bank, Abu Dhabi Commercial Bank, and transfer the funds to Little Rose, while retaining a small commission. Wilben was not involved in the shipping or insuring of the goods; their role was purely financial facilitation — at least, that’s the version presented by Wilben’s lawyers.
The beginning of the conflict
Tensions between the two parties began to rise years after the transactions, in 2021. Ecobank Nigeria accused Wilben of wrongfully receiving $42,485,900, alleging irregularities and fraudulent activities. Ecobank, through a dedicated financial dispute resolution branch, ETISRC, sought to recover these funds from Wilben and its CEO, Marcus Wade. However, before these accusations surfaced, it was reported that Ecobank initially pursued the real culprits of the problem for several years, but without success. ETI then used the ETISRC (a vehicle for handling bad debts) to buy back the debt. Only much later did ETISRC turn to Wilben to claim the unpaid debt from the real debtors.
Wilben, for its part, has vehemently denied the accusations, stating that all transactions were conducted by the book, with Ecobank’s full knowledge and supervision. According to the company, Ecobank was well aware of the transaction details and the funds received, which were later transferred to Little Rose, the original supplier.
The Central Bank of Nigeria dragged into the controversy
The situation escalated when Wilben, through its lawyers, lodged a complaint with the Central Bank of Nigeria (CBN), calling for an investigation into Ecobank’s practices.
On July 22, 2024, Wilben sent an official letter to the CBN, accusing Ecobank Nigeria and its CEO, Dele Alabi, of fraudulent and unethical practices.
In response, the CBN acknowledged the complaint and stated that it would look into the accusations. However, a few days later, the CBN took to social media, categorically denying the claims, stating that the information circulating in the press, particularly a press release by Wilben about the ongoing investigation, was false and misleading.
This reaction sparked outrage from Wilben’s lawyers, especially Lateef Omoyemi Akangbe (SAN), who demanded an immediate retraction from the CBN, calling the denial defamatory. Akangbe insisted that Wilben’s press release contained no false information and was entirely factual. He also reminded that the CBN had indeed acknowledged receipt of the complaint and had promised to investigate.
A legal showdown on the horizon?
The CBN’s public stance has opened a new chapter in this already tense conflict. Wilben’s lawyers are threatening to sue the Central Bank of Nigeria if it does not retract its statements labeling Wilben’s press release as false. They argue that the CBN, as the regulator of the banking sector, has an obligation to conduct a thorough investigation into the allegations against Ecobank.
Wilben’s attorney also emphasized that this case touches on the integrity of Nigeria’s financial system and that a lack of transparency could damage the banking sector’s reputation.
Gray areas and potential consequences
Several unresolved issues remain in this case. On the one hand, Ecobank maintains its accusations against Wilben, seeking to recover what it claims to have lost. On the other hand, Wilben insists that Ecobank is trying to deflect from its own commercial failings by targeting an intermediary company instead of focusing on the actual parties involved in the original transaction: Agrico Agbe Ltd and Little Rose Trading LLC.
If the Central Bank of Nigeria continues to stand by its denial without providing an explanation, it could find itself embroiled in a legal mess, with a defamation lawsuit looming. The case could also cast a shadow over Ecobank’s reputation, one of Africa’s leading banking institutions, as well as the credibility of the CBN as a financial regulator.
This dispute highlights the complexities of international trade and the risks associated with transactions involving multiple actors across different countries.
Beyond the financial stakes, this case could have institutional repercussions and raise questions about regulators’ ability to handle conflicts that undermine confidence in the banking sector.
This is certainly a case to watch, as judicial developments and the CBN’s decisions will have crucial impacts on the resolution of this conflict and the reputation of the institutions involved.
Here is the official response from the Ecobank Group to the accusations against its Nigerian subsidiary:
Olivier A.
