“Access Bank Accused of Illegally Using Property as Collateral for Loan”

New revelations have emerged regarding Access Bank’s involvement in a controversial loan deal where the bank allegedly granted a N1 billion loan to DDSS International Company Limited, using a property belonging to another company, MOB Integrated Services, as collateral—without the owner’s consent or knowledge.

The details, provided by insiders, reveal that the property, located at 40B Bourdillion Road, Ikoyi, Lagos, was initially used as collateral for a loan of N193,139,200 granted by the now-acquired Diamond Bank to Balmoral International Limited on May 21, 2013. The loan included a N120 million term loan and a N20 million import duty facility. The term of the loan was set for 180 days, with an annual interest rate of 20 percent, and a third-party legal mortgage on the property was registered as security.

After Balmoral repaid its loan, the property was again used as collateral, this time for a completely different loan to DDSS International Company Limited, granted by Access Bank in May 2019. This loan, also backed by the same property, amounted to N1 billion and was intended to help DDSS International finance the purchase of luxury vehicles for resale. The loan terms included a 60-month tenor with a 15 percent annual interest rate.

According to the offer letter from Access Bank, the property was listed as a “comprehensive third-party legal mortgage,” with the bank claiming that the collateral was in their possession and the mortgage had been perfected. However, the real owner, MOB Integrated Services, was never informed or involved in the agreement, and the company had no connection to DDSS International. This raised concerns that the loan was granted without legitimate collateral.

Subsequently, a complaint was lodged, leading the Lagos State Government to file charges against the parties involved, including Access Bank’s Managing Director Bolaji Agbede and others. They are facing charges of conspiracy, stealing, and attempted theft in connection with the unauthorized use of the property. The case is currently before Justice Ibironke Harrison at the Lagos State High Court.

The charges state that the accused conspired to steal MOB Integrated Services’ property by using it as collateral for a loan without consent and then attempted to do so again in 2019. The prosecution also accuses the defendants of attempting to unlawfully grant the N1 billion loan to DDSS International.

Despite being served notice to appear in court, the defendants failed to show up for their arraignment, prompting Justice Harrison to issue arrest warrants for the accused individuals. The judge has directed the execution of the warrants and scheduled the next hearing for February 24, 2025.