Lomé, August 15, 2025-(©AfreePress)- After 17 years as a key shareholder in Ecobank Transnational Incorporated (ETI), South Africa’s Nedbank, holding a 21.22% stake, has initiated a full divestment of its shares. The move comes against a backdrop of persistent allegations of governance failures, high-stakes legal disputes, and a steep decline in the performance of Ecobank’s Nigerian subsidiary.
Nigerian operations plummet
Ecobank Nigeria (EBN), once a cornerstone of ETI’s portfolio, has seen its contribution to group revenue plummet from 43.39% in 2014 to a mere 6.03% in 2024. Years of underperformance and financial losses have forced ETI to shore up liquidity, including through a $325 million bond issuance in 2025 to refinance debt and stabilize the group’s finances.
Explosive legal battle with global ramifications
At the heart of the turmoil is a contentious lawsuit involving alleged extortion targeting Marcus Wade, a British citizen and CEO of Wilben Trade, initiated by EBN and its debt recovery arm, ETI Specialised Recovery Company (ETISRC).
The case, launched in Nigeria in 2022 based on what critics describe as an unsubstantiated criminal complaint, is accused of being a pressure tactic to extract a financial settlement. Court documents allege that ETISRC’s Managing Director, Oladele “Dele” Alabi, offered to drop the complaint in exchange for payment, citing pressures tied to an impending $500 million eurobond repayment.
In response, Wilben Trade filed a $67.8 million lawsuit in December 2024 at the United Arab Emirates courts, accusing ETI, EBN, ETISRC, and several executives, including ETI Group CEO Jeremy Awori, of defamation, coercive tactics, and reputational damage. The case is set for a hearing in September 2025.
Questions over financial transparency
Despite the potential financial impact of this high-profile litigation, ETI’s 2024 annual report allocates only $62.2 million for significant legal contingencies, with no mention of the Wilben Trade case. This omission raises serious concerns about compliance with international financial disclosure standards. Auditors Deloitte and Grant Thornton, approached for clarification on whether the case was accounted for, have yet to provide a definitive response.
Nedbank’s exit signals deeper issues
While Nedbank has not publicly detailed its reasons for exiting, sources close to the matter point to ongoing concerns about ETI’s governance and the persistent struggles of its Nigerian operations. At ETI’s 2025 Annual General Meeting, shareholders amended the group’s bylaws to allow existing investors to acquire Nedbank’s stake without a public offer, facilitating a smoother exit.
In parallel, ETI has reportedly launched an urgent internal audit of its Nigerian entities, a move interpreted as a reaction to Nedbank’s departure and a bid to address systemic issues.
A fragile reputation at stake
For industry observers, this saga underscores a dual challenge for ETI: rebuilding investor confidence while overhauling internal practices. The absence of shareholder dividends in 2025, opaque handling of legal disputes, and delays in addressing internal misconduct raise questions about the need for a strategic and ethical reset. Without decisive action, the pan-African banking group risks further erosion of its market appeal.
By Olivier A.
