Ecobank Hit with $68M Lawsuit Over Alleged Coercion and Defamation

A $68 million lawsuit filed in the UAE against Ecobank Transnational Inc (ETI) executives and subsidiaries has brought to light serious allegations of corporate misconduct and abuse of legal processes in Nigeria's banking sector. The case centers on claims of defamation, coercion, and abusive proceedings against Ecobank's CEO Jeremy Awori and other key figures.

The dispute stems from a 2015 incident where Ecobank Nigeria (ENG) incurred losses exceeding $42 million in transactions with Agrico Agbe Limited and Little Rose Trading LLC. Wilben Trade, which served only as an intermediary for letter of credit discounting, claims it has become the target of unwarranted recovery attempts after Ecobank failed to recoup losses from the original parties.

The situation escalated in 2022 when ETI Specialized Resolutions Company (ETISRC) filed a police report in Nigeria, accusing Wilben Trade of conspiracy and fraudulent conversion of $42.4 million. Wilben Trade contends these allegations were fabricated and represent an abuse of Nigeria's public institutions for private interests.

This case raises significant concerns about corporate governance in African banking and the potential misuse of legal systems for debt recovery. The lawsuit highlights the broader implications for international business relations and the need for transparent dispute resolution mechanisms in cross-border financial transactions.

For the banking industry, this case could set important precedents regarding the boundaries of debt recovery practices and the responsibilities of financial institutions when pursuing claims against business partners. It also underscores the growing scrutiny of how multinational banks operate in developing markets and their accountability in international jurisdictions.