Eco Bank faces fresh $68M lawsuit

Eco bank Transnational Incorporated (ETI), are facing a $68 million legal claim filed in the United Arab Emirates (UAE).

The lawsuit, brought by Wilben Trade and its CEO Marcus Wade, alleges defamation, abusive legal proceedings, and coercion in relation to a 2015 financial transaction dispute.

The defendants include ETI Specialized Resolutions Company (ETISRC), Ecobank Nigeria (ENG), and Oladele Alabi, Managing Director of ETISRC.

The claim centers around alleged attempts to coerce Wilben Trade into making substantial payments to ENG and ETISRC after Ecobank incurred a $42 million loss in transactions involving two other companies, Agrico Agbe Limited and Little Rose Trading LLC.

Wilben Trade, which acted solely as an intermediary to discount Letters of Credit at Ecobank’s request, denies any involvement in the losses.

The company alleges that Ecobank’s actions are part of a campaign of “extortion” aimed at recovering funds from an uninvolved party after failing to recoup losses from the original customers.

In 2022, ETISRC escalated the matter by filing a report with the Nigeria Police Force, accusing Wilben Trade of conspiracy and fraudulent conversion. Wilben Trade contends that these allegations are baseless and fabricated, accusing Ecobank of leveraging public institutions in Nigeria for private gain.

Marcus Wade and Wilben Trade’s legal representative, Lateef Omoyemi Akangbe SAN, emphasized their commitment to seeking redress: “In addition to taking action in Nigeria, our client is pursuing international legal action to address Ecobank’s abusive tactics and repair the ongoing damage caused to our client by Ecobank’s improper use of public institutions to pursue its baseless complaints against our client.”

Despite calls for dialogue to resolve the matter, Wilben Trade claims Ecobank has refused to engage constructively.

In a statement, Ecobank denied allegations of extortion and clarified its position: “The issue referenced is currently the subject of litigation in Nigerian and Indian courts, in connection with an established case of fraud perpetrated against the Ecobank Group (Ecobank) by individuals currently being prosecuted by the appropriate authorities in Nigeria. As a result, Ecobank is unable to provide any comment on this matter at this time.”

Ecobank also stated that its holding company, ETI, is not a party to the ongoing litigation, while reserving the right to pursue legal remedies to protect its reputation against defamatory publications.

The case highlights ongoing tensions between the bank and Wilben Trade, as both parties pursue legal action to address the fallout from the contentious 2015 transactions.