CBN denies investigating Ecobank, led by Cameroonian Alain Nkontchou, over alleged extortion

Oluwatosin Racheal Alabi -

Key Points:

  • CBN denies investigating Ecobank, led by Cameroonian Alain Nkontchou and ETISRC for alleged extortion, clarifying that the claim is misleading.
  • Earlier media reports linked Ecobank to a $42.5 million fraud case involving Wilben Trade Limited and its CEO, Marcus Wade.
  • CBN held an $876.26 million Retail Dutch Auction System (rDAS) to stabilize Nigeria’s FX market and ensure transparency.

The Central Bank of Nigeria (CBN) has categorically denied any involvement in investigating Ecobank, led by Cameroonian Alain Nkontchou and its parent company, Ecobank Transnational Incorporated Specialised Resolutions Company (ETISRC), for alleged extortion activities.

This clarification was made following the circulation of a statement titled “Central Bank of Nigeria investigating allegations of extortion at Ecobank Nigeria,” which claimed that the CBN was looking into abusive practices related to Wilben Trade Limited and its CEO Marcus Wade.

In a prompt rebuttal posted on X (formerly Twitter) on Wednesday, the CBN dismissed the claims as misleading and unaffiliated with the bank. The apex bank urged the public to disregard the misinformation, stating, “This information is misleading and not affiliated with the Central Bank of Nigeria. Please be guided.”

This denial follows earlier reports, particularly on March 4, 2023, when some media outlets reported that Ecobank had petitioned the Department of Public Prosecutions over a $42,485,900 fraud case involving Prem Garg, Devashish Garg, Marcus Wade, and Wilben Trade Limited.

However, the CBN has made it clear that it is not involved in any such investigation concerning Ecobank.

CBN conducts retail dutch auction system (rDAS) to stabilize FX market

In another development, the CBN has conducted a Retail Dutch Auction System (rDAS) sale, where $876.26 million was sold at an exchange rate of N1,495 per dollar to 26 eligible banks. This auction, held on Aug. 6, 2024, aimed to address the high demand for foreign exchange (FX) and ensure transparent price discovery.

The auction saw a total of $1.18 billion in bids from 32 banks, but only $876.26 million worth of bids from 26 banks were accepted. The remaining bids were disqualified due to late submissions or incomplete bid templates.

This auction is part of the CBN’s broader strategy to stabilize Nigeria’s FX market, promoting fair and transparent allocation of foreign exchange while supporting liquidity and reinforcing market confidence.

Leading regional banking group

Ecobank is the leading independent regional banking group in West and Central Africa, serving wholesale and retail customers in 36 African countries. The pan-African banking conglomerate is one of the largest in terms of countries served.

Cameroonian banker Alain Nkontchou, chairman of Ecobank, maintains a 2.18-percent beneficial stake (equivalent to 400,916,488 ordinary shares) in the regional banking group.

Under Nkontchou’s leadership, total comprehensive income surged, rising from N7.06 billion ($15.54 million) to N448.72 billion ($123.76 million). This follows a strong 2023 performance where total comprehensive income rose from $61.21 million to $226.99 million.

The Togo-based financial services conglomerate’s strong performance is reflected in a 33.39-percent expansion in total assets to N34.57 trillion ($26.53 billion). Retained earnings also surged 31.45 percent to N1.41 trillion ($1.02 billion).