Nord CEO Alleges Stanbic IBTC Illegally Debited N700 Million Over Disputed 2022 Letter Of Credit

Founder and Chief Executive Officer of Nigerian auto manufacturer Nord Automobiles, Oluwatobi Ajayi, has accused Stanbic IBTC Bank of unilaterally debiting N700 million from the company’s account without prior notice or a court order.
Ajayi described the action as “unbelievably unethical,” raising broader concerns about institutional bias against locally manufactured vehicles. The alleged debit occurred in April 2025 amid an ongoing legal dispute over a Letter of Credit (LC) issued in 2022.
“We didn’t borrow money from them,” Ajayi said in a statement shared on social media. “They claimed that the LC we took in 2022fully paid at the prevailing exchange rate of N430 to N480 was no longer valid, and that we now had to pay at over N1,600 for transactions that had long been closed.”
According to Ajayi, the bank argued that it had not received the LC’s USD value from the Central Bank of Nigeria (CBN), holding Nord liable for the difference. Despite agreeing to resolve the matter in court, Stanbic IBTC allegedly withdrew N700 million from Nord’s account without warning.
“While the case is ongoing, the bank illegally debited N700 million from our account without notice. The ambush was unbelievably unethical,” he said.
Ajayi also raised concerns over Stanbic IBTC’s alleged refusal to finance customers purchasing Made-in-Nigeria vehicles. He recounted an incident where a business owner sought to purchase two Nord Max pickups but was allegedly advised by the bank to consider foreign brands instead.
“To my shock, my team told me that the bank told him they do not finance Made-in-Nigeria vehicles,” Ajayi said. “They even suggested foreign brands some of which are registered as Made-in-Nigeria with the Bureau of Public Procurement.”
He described the move as “economic sabotage,” arguing that such practices undermine Nigeria’s industrial growth and contradict President Bola Tinubu’s goals to build a $1 trillion economy by 2030.
“We cannot continue using Nigerian resources to strengthen foreign factories while starving our own indigenous companies of opportunities,” he added, stressing that Nord’s mission goes beyond profit and is driven by patriotism and a vision to build world-class vehicles in Nigeria.
As of this report, Stanbic IBTC has not issued an official statement in response to the allegations, with indications that the matter is already in court.
Ajayi urged stakeholders to take the refusal to finance locally made vehicles seriously, warning that without domestic support, Nigerian manufacturers cannot hope to compete regionally or globally.
Last month, Nigeria’s Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, visited the Nord assembly plant in Lagos, urging government agencies and the private sector to boost patronage of Made-in-Nigeria products. The visit took place on October 1, 2025, when she collected her newly acquired Nord Demir SUV from the assembly plant located inside the University of Lagos (UNILAG).
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