The Central Bank of Nigeria (CBN) has been informed of a high-profile extortion attempt involving senior executives of Ecobank Nigeria against a UAE-based company.
The extortion attempt has been publicised on the website ecobankextorts.com, which describes the case as an ‘unfair and unjust controversy’ involving ‘an extortion scheme orchestrated by Ecobank Transnational Incorporated Specialized Recovery Company’ (ETISRC). The website says that Jeremy Awori, the Group CEO of Ecobank Transitional Inc. (ETI), is aware of the case but has failed to stop the situation, suggesting that ETISRC’s corrupt actions have ETI’s backing.
In July 2021, Ecobank made a complaint to the Attorney General of the Federation through legal practitioners Wigwe & Partners, alleging that the UAE-based company were being investigated in connection with an alleged fraud perpetrated by Agrico Agbe. Dele Alabi, the Managing Director of ETISRC, the Ecobank subsidiary that made the complaint, knew this allegation was false when making it and his actions have caused significant damage to the UAE-based company.
The Central Bank of Nigeria acts as the regulator and supervisor of Nigerian financial institutions such as Ecobank and their mandate involves ‘promoting a sound financial system’. It has been confirmed that the CBN has approached Ecobank as it investigates the case and could take action to stop this behaviour.
It is estimated that corruption in Nigeria has cost the Nigerian economy over half a trillion dollars in the 60 years since independence, and there is overwhelming public pressure to stamp out corruption at the heart of political and financial industries.
The National Bureau of Statistics conducted a survey in late 2023, in collaboration with the United Nations Office on Drugs and Crime. Their report found that a staggering N721 billion (around USD $1.26 billion) was paid as bribes to Nigerian public officials in 2023.
Robert Besseling is the CEO of Pangea Risk, a specialist intelligence advisory. He says that “there are a number of Nigerian and regional West African banks, which consistently conduct fraudulent financial operations, often with the cover of federal and state administrators that are often complicit in these types of illicit transactions.”
The claims of an extortion attempt by Ecobank Nigeria executives come at a sensitive time for ETI. Given that ETI plans to raise $600m of additional capital, they can ill-afford their largest subsidiary to be embroiled in a controversy.
Ecobank Nigeria has suffered from a series of recent ratings downgrades, with Fitch Ratings lowering their rating to ‘CCC’. Fitch estimates that the bank has been in breach of its minimum regulatory capital requirement since February 2024 and there are uncertain prospects for restoring compliance in the near term.
