Court strikes out N1.3 billion fraud case against Obanikoro, others

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The Federal High Court in Ikoyi, Lagos, on Friday, struck out the fraud charges against Gbolahan Obanikoro and four others.

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The development came after the Nigeria Police Force filed a notice of withdrawal of the N1.3 billion fraud case against the five defendants.

In November last year, the police, at the instance of Access Bank, charged Mr Obanikoro, alongside Adejare Adegbenro, Balmoral International Limited, M.O.B. Integrated Limited and DDSS International Company Limited with five counts of fraud arising from a N1.3 billion loan dating back to 2013.

Mr Obanikoro is the son of Musiliu Obanikoro, former senator for Laos Central.

Trial judge Ambrose Lewis-Allagoa already scheduled the arraignment of the defendants for 27 February.

However, the police, in a notice of withdrawal filed on Wednesday under section 108(1) of the Administration of Criminal Justice Act, 2015, informed the court of its desire to withdraw the charges. The filing gave no reason for the decision.

Withdrawal

During Friday’s proceedings, Joshua Abel, representing the fourth defendant, M.O.B. Integrated Limited (Mr Obanikoro’s firm), noted the absence of other parties.

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He reminded the court that the case had been adjourned till 27 February for arraignment. However, prior to that date, the prosecution filed a notice to withdraw the case.

Mr Abel requested that, given this development, the court should vacate the scheduled arraignment and strike out the case. The judge concurred, cancelling the arraignment date and striking out the charges.

Another criminal case

There is another criminal case that sprang from a controversial loan transaction between Access Bank and DDSS International Company Limited, owned by Mr Adegbenro, who is Mr Obanikoro’s estranged business partner.

According to Mr Obanikoro, Mr Adegbenro secured a N1 billion loan from Access Bank in 2019 using his property at 40B Bourdillon Road, Ikoyi, Lagos, as collateral—without his knowledge or consent.

Prior to this, both partners had jointly obtained a loan from the now-defunct Diamond Bank, which later folded into Access Bank in 2019, to finance their luxury car importation business. The same property had been used as collateral for that loan.

Mr Obanikoro stated that he only became aware of the new loan during a 2019 meeting with Access Bank representatives, where he had requested the return of his property documents following the full repayment of the initial loan.

However, he claimed the bank refused to release the documents, informing him that the property was being held as security for another loan—one he had no prior knowledge of.

The loan in question, granted to DDSS International Company Limited, was intended to finance the purchase of various luxury vehicle brands for resale to individuals and corporate clients. It had a repayment tenor of five years.

Afterwards, Mr Obanikoro filed a complaint at the Special Fraud Unit of the Nigerian police.

At the instance of Mr Obanikoro, the Lagos State Government charged Mr Adegbenro, Balmoral International Limited, DDSS International Company Limited and Bolaji Agbede, the acting managing director of Access Holdings, before the Lagos State High Court in Tafawa Balewa Square. Access Holdings is the parent company of Access Bank.

In the indictment dated 7 October 2024, the defendants face four counts of stealing, conspiracy to commit a felony, and attempted theft.

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The prosecution said the defendants, on 2 September 2013, stole the property belonging to Mr Obanikoro’s firm, M.O.B Integrated Services, at Plot 40B, Bourdillon Road, Ikoyi, Lagos, by using it as a security for a loan without the owner’s consent.

During a hearing of the case on 20 January, the judge, Ibironke Harrison, ordered the arrest of Access Bank’s managing director, Bolaji Agbede, Mr Adegbenro and other defendants.

The state government’s prosecuting lawyer, Rilwan Uthman, applied for the bench warrant for the defendants’ arrest because they failed to appear in court despite being notified of the proceedings.

After granting the prosecutor’s request, the court adjourned till 24 February.