Access Bank has been accused of fraudulently using a property belonging to MOB Integrated Services as collateral for a N1 billion loan to DDSS International Company Limited without the property owner’s knowledge or consent in a developing financial scandal.
The controversy began when the property, located at 40B Bourdillion Road, Ikoyi, Lagos, was initially used legitimately as collateral for a N193 million loan to Balmoral International Limited in 2013. Although this initial loan was fully repaid, Access Bank allegedly reused the same property as security for a second, much larger loan in 2019 without informing or obtaining permission from the property’s rightful owner, Gbolahan Obanikoro’s MOB Integrated Services.
The N1 billion loan, approved for DDSS International Company Limited, was intended to finance the purchase of luxury vehicles. The loan agreement, signed by bank officials Bukola Shoyombo and Oreoluwa Roy-Egbokhan, offered favourable terms, including a 60-month tenor at 15% annual interest.
The Lagos State Government has now filed criminal charges against several parties, including Access Bank’s Managing Director Bolaji Agbede, Balmoral International Limited’s Managing Director Adejare Adegbenro, and DDSS International Company Limited. The charges include conspiracy, stealing, and attempted theft under the Criminal Law of Lagos State.
Following the defendants’ failure to appear for arraignment, Justice Ibironke Harrison of the Lagos State High Court has issued arrest warrants for the principal officers of the defendant companies. The case has been adjourned until February 24, 2025, when arraignment proceedings are expected to continue.
This case highlights significant concerns about banking practices and the security of collateral assets in Nigeria’s financial sector, with potential implications for banking regulation and oversight.
