The various failed attempts by various authorities geared towards exposing extortion and defamation in Nigeria has triggered the need to integrate technology into the relevant sectors. The details are revealing.
The recent $68 million lawsuit against Ecobank Transnational Incorporated (ETI) has drawn widespread public attention. Wilben Trade and its CEO, Marcus Wade, filed the case in the United Arab Emirates. Its officials claim they are about exposing extortion and defamation through the case.
The company accuses Ecobank of extorting money from an unrelated party to recover losses from the original customers. It accuses Ecobank of extortion, defamation, and abusing public institutions to intimidate their company.
At the center of the conflict is a $42 million financial loss suffered by Ecobank in 2015. This loss came from transactions involving Agrico Agbe Limited and Little Rose Trading LLC. Ecobank allegedly forced Wilben Trade to pay for this loss, despite having no direct involvement.
Wilben Trade only acted as an intermediary to discount Letters of Credit requested by Ecobank. The company denies any responsibility for the losses. In 2022, Ecobank’s specialized resolutions unit, ETISRC, accused Wilben Trade of conspiracy and fraudulent conversion.
These accusations led to police involvement, raising concerns about misuse of public institutions. Wilben Trade’s lawyer, Lateef Omoyemi Akangbe SAN, criticized these actions as intimidation tactics.
Alleged instances exposing extortion and defamation
Extortion is the use of threats or force to coerce someone into giving money, goods, or services. Defamation involves making false statements that harm a person’s reputation. Both crimes are punishable under Nigerian law but face enforcement challenges.
In Nigeria, extortion is addressed under Section 292 of the Criminal Code Act. Offenders can face imprisonment or heavy fines. Defamation laws provide victims with both civil and criminal remedies. However, corruption and weak institutions often hinder effective enforcement.
The Ecobank-Wilben Trade case highlights broader issues of extortion and defamation in Nigeria. These problems are not new.
Innoson Motors vs. GTBank (2017): Innoson’s CEO accused GTBank of using the EFCC to intimidate him during a financial dispute. The lengthy legal battle exposed institutional weaknesses and public mistrust in the system.
Femi Otedola’s bribery scandal (2012): Otedola revealed attempts by lawmakers to extort him during the oil subsidy probe. While his bold actions exposed corruption, they also showed the deep flaws in Nigeria’s systems.
Comparison with neighbouring countries
Some African nations handle these issues better. Ghana’s banking sector enforces strict corporate governance to ensure accountability. In 2020, the Bank of Ghana investigated misconduct among banks, which helped rebuild public trust.
In Kenya, the Central Bank uses advanced technology to track financial transactions and reduce fraud. These proactive measures create a fairer financial environment. Nigeria can learn from such examples to fight extortion and defamation effectively.
How technology can help
Extortion and defamation undermine trust in institutions, damage reputations, and erode economic growth. Technology provides modern tools to combat these issues. Artificial intelligence (AI), blockchain, and mobile platforms offer transparency, accountability, and protection for individuals and businesses.
AI for Fraud Detection
AI-powered systems can analyze vast amounts of financial data to detect anomalies and suspicious activities. These tools help banks and law enforcement agencies identify fraudulent transactions and predict risks before they escalate.
Brazil’s AI Banking System: In 2017, Brazil implemented AI tools in its banking sector to fight corruption and fraud. These systems flagged irregularities in large transactions, such as money laundering operations involving Banco Panamericano. AI exposed fraudulent practices that previously went unnoticed, saving billions of dollars in potential losses.
Nigerian can benefit from this type of technology to checkmate cases of fraud, extortion and defamation. AI could be used to monitor transactions in Nigerian banks, especially in cases like the 2017 Innoson Motors vs. GTBank dispute, where better fraud detection tools might have prevented prolonged legal battles. AI could also support agencies like the EFCC to uncover financial crimes efficiently.
Blockchain for transparency
Blockchain technology is a decentralised, digital ledger technology. It records transactions across a network of secured computers. This creates a tamper-proof digital ledger, ensuring all transactions are transparent, secure, and irreversible. This reduces opportunities for manipulation, fraud, and unauthorized access.
For instance, check out the Estonia’s and Kenya’s Blockchain systems. Since 2012, Estonia has integrated blockchain into its public and private sectors, including healthcare, voting, and banking. By securing digital records, Estonia restored public trust and reduced corruption significantly.
Similarly, in 2020, Kenya’s Central Bank adopted blockchain to oversee interbank transactions, reducing delays and increasing accountability.
In Nigeria, blockchain could have prevented manipulation in cases like the 2015 Ecobank-Wilben Trade dispute. Using blockchain to record Letters of Credit transactions would have created a clear, immutable trail of records, ensuring transparency and avoiding disputes over liability.
Government institutions like the Corporate Affairs Commission (CAC) and the Nigeria Inter-Bank Settlement System (NIBSS) could adopt blockchain to monitor corporate and financial dealings transparently.
Mobile whistleblowing platforms
Mobile apps empower citizens to report unethical practices like extortion or defamation anonymously. These platforms encourage accountability and protect whistleblowers from retaliation.
India’s Bhrashtachar Mukt Bharat Platform established in 2016, for instance, allowed users to report corruption cases to authorities while maintaining anonymity. It contributed to exposing corrupt practices in government offices and public projects.
In South Africa’ in 2012, Corruption Watch received thousands of reports about bribery, extortion, and fraud through its mobile and online platforms. It worked with local media and law enforcement to bring perpetrators to justice.
Nigeria could develop similar platforms to address institutional extortion. In cases like the 2012 Femi Otedola bribery scandal, where lawmakers allegedly demanded bribes during the oil subsidy probe, mobile whistleblowing tools could have provided an anonymous reporting channel, encouraging transparency.
Platforms could also help small businesses or individuals, like the 2023 Zamfara case, where a small trader accused a bank of unfair seizure of assets. Mobile reporting ensures such cases gain attention without fear of victimization.
Using tech in exposing extortion and defamation among security officials
Technology offers innovative solutions to address allegations of extortion and defamation against law enforcement agencies. Artificial intelligence (AI) can be integrated into systems that monitor agency activities, analyzing patterns in arrests, financial transactions, and case handling.
AI tools can flag suspicious behaviour, such as repeated financial irregularities or unexplained asset accumulation. This could indicate extortion or misuse of power. For example, AI-driven audits can independently assess law enforcement officers’ financial records and highlight anomalies. Thus, ensuring transparency and accountability.
Mobile whistleblowing platforms can allow citizens to anonymously report instances of misconduct or abuse by law enforcement officials. These reports can be accompanied by evidence, such as photos or videos, and sent directly to independent oversight bodies.
Also, body cameras and other surveillance technologies can provide real-time evidence to counter allegations of misconduct. By equipping law enforcement officers with body cameras that are automatically activated during operations, every interaction can be recorded and stored securely. Such footage could provide clarity in cases where accusations of extortion or defamation arise, ensuring accountability on both sides.
The cost of injustice and better way forward
Extortion and defamation are not just financial issues—they destroy lives and livelihoods. Imagine a small business owner in Zamfara losing everything due to unfair practices by a bank. Or a young entrepreneur whose reputation is ruined by false accusations. These stories are all too common in Nigeria.
Public frustration over the misuse of power by institutions is growing. Nigerians want accountability and justice from financial institutions and law enforcement agencies.
To address these systemic issues, Nigeria needs to take some key steps to strengthen the fight:
- Stronger laws and enforcement: Update laws to address modern challenges. Ensure offenders face real consequences for illegal actions.
- Institutional independence: Agencies like the EFCC and Nigerian Police must operate free from corporate or political interference.
- Technology integration: Use AI, blockchain, and mobile tools to enhance transparency and accountability, among others.
By reforming legal frameworks and adopting digital tools, Nigeria can protect its citizens and businesses. Justice should not be a privilege for the powerful but a right for everyone. A fair and transparent system benefits all Nigerians and strengthens the nation’s future.
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