By Ayomide Otitoju
New revelations have surfaced regarding how Access Bank allegedly granted a N1 billion loan to DDSS International Company Limited using a property belonging to MOB Integrated Services—run by Gbolahan Obanikoro—as collateral without the owner’s consent or knowledge.
Background of the Controversy
According to insider reports, the property, located at 40B Bourdillion Road, Ikoyi, Lagos, was initially used as security for a N193,139,200 loan granted to Balmoral International Limited by the now-defunct Diamond Bank on May 21, 2013. The credit facility, referenced AOB/BB/VO/AD/031/05/2013, also included a N120 million term loan and a N20 million import duty facility under a 180-day repayment period at 20% interest per annum.
Although Balmoral International fully repaid the loan, Access Bank, which acquired Diamond Bank in 2019, allegedly reused the same property as collateral for a fresh N1 billion loan to DDSS International on May 16, 2019, without notifying or obtaining consent from MOB Integrated Services.
The loan was intended to finance the purchase of luxury vehicles for sale to individuals and corporate organizations. The offer letter, signed by Bukola Shoyombo, a Relationship Officer, and Oreoluwa Roy-Egbokhan, a Relationship Manager at Access Bank’s Business Banking Division, stated that the collateral was a “comprehensive third-party legal mortgage” on the Ikoyi property.
However, insiders allege that the bank effectively granted DDSS International the loan without a legitimate collateral, as MOB Integrated Services had no affiliation with the borrowing company.
Legal Action and Arrest Warrants
Following a complaint of theft against the bank and other parties involved, the Lagos State Government filed charges against Access Bank’s Managing Director, Bolaji Agbede, and three others.
The case, currently pending before Justice Ibironke Harrison at the Lagos State High Court, Tafawa Balewa Square, accuses the defendants of conspiracy, stealing, and attempted theft under Sections 411 and 21 of the Lagos State Criminal Law (2015).
The defendants include:
Adejare Adegbenro, Managing Director, Balmoral International Limited
Balmoral International Limited
Access Bank
Bolaji Agbede, Managing Director, Access Bank
DDSS International Company Limited
The charge sheet states that the accused conspired to steal MOB Integrated Services’ property by fraudulently using it as collateral for the N1 billion loan and subsequently entering into a consent judgment without the owner’s approval.
The prosecution further alleged that on May 26, 2019, the defendants attempted to illegally offer and grant the credit facility using the property as security.
During a recent hearing, Justice Harrison issued an arrest warrant after the defendants failed to appear in court for their scheduled arraignment. Prosecuting counsel Uthman Rilwan informed the court that despite being served notice, the accused parties were absent.
The judge ordered that the arrest warrant be executed against the principal officers of the defendant companies.
Implications and Next Steps
The case raises serious concerns over banking practices and regulatory oversight in Nigeria’s financial sector. The alleged fraudulent use of collateral without consent, if proven, could set a precedent for stricter enforcement of banking regulations.
Access Bank and the other defendants are expected to face legal scrutiny in the coming weeks as the investigation unfolds.
