Alleged N1.3bn Fraud: Police to withdraw charges against Obanikoro, others

The Nigeria Police Force has filed a notice of withdrawal of the N1.3 billion fraud charges instituted against Gbolahan Obanikoro, and four others at the Federal High Court in Ikoyi, Lagos.

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 a son of Musiliu Obanikoro, a former senator for Lagos Central.

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

But the police informed the court of its desire to withdraw the case against the defendants in a notice of withdrawal they filed on 5 February (Wednesday).

Apart from citing section 108(1) of the Administration of Criminal Justice Act, 2015, the document signed by J.I. Enang, a chief superintendent of police and seen by PREMIUM TIMES on Thursday provides no reason for the decision to end the case.

“Take notice that the prosecution hereby withdraws the above-mentioned charge against the defendants herein,” the document reads.

However, no reason was given for the withdrawal of the charges.

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It remains unclear if the court would wait yet to strike out the charges.

Backstory

In the case marked FHC/L/902c/2024, the Nigerian police, through their Special Fraud Unit (PSFU) in Ikoyi, Lagos, charged the defendants with five counts of conspiracy, obtaining by false pretences, fraud and false representation.

The indictment accused them of conspiring to fraudulently obtain N1.36 billion from Access Bank by misrepresenting their business operations and using falsified documents.

It added that the defendants obtained the N1.36 billion loan from the bank under the pretext of using the proceeds to finance the importation of brand-new cars from Dubai to restock their business. The prosecution said this claim was false, as the defendants allegedly diverted the money to personal use and benefits in contravention of section 16) (a) of the Advance Fee Fraud and other fraud related offences Act No. 14 of 2006. The offence is punishable under section 1(3) of the same Act.

Following the defendants’ absence from the 24 February proceedings, MoMoh Bello, the prosecuting lawyer, applied to the judge to order their arrest.

However, Joshua Abel, a lawyer representing M.O.B., opposed the prayer.

Mr Abel told the court that his client is a company and that it was served late. He added that most of the directors of the company were abroad.

The judge, Ambrose Lewis-Allagoa, declined to issue a bench warrant against the defendants, noting that there is no proof of service on the natural persons among the defendants.

He rescheduled the case for arraignment on 27 February.

With the latest development, the case may be formally withdrawn and struck on or before the date.

Controversial loan and another criminal case

The matter that is about to be withdrawn is one of the two criminal cases 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 ₦1 billion loan from Access Bank in 2019 using his property at 40B Bourdillon Road, Ikoyi, Lagos, as collateral—without his knowledge or consent.

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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.

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.