CBN, EFCC Initiate Investigations Into Alleged Forex Racketeering
The Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) have launched joint investigations into suspected forex racketeering involving banks and firms, with transactions valued at €2.20 billion under scrutiny.
Governor of the Central Bank of Nigeria, Olayemi Cardoso, disclosed the ongoing probe during a press briefing following the 294th meeting of the Monetary Policy Committee in Abuja. Cardoso revealed that security agencies, including the EFCC, are examining questionable foreign exchange allocations and forward contracts, stemming from an audit of €6.42 billion dollar debts inherited by the current CBN administration.
The probe was initiated after an audit conducted by global firm Deloitte, engaged by the CBN, identified significant irregularities in the allocation of foreign exchange. According to Cardoso, the majority of transactions flagged by the audit did not meet regulatory standards and lacked valid documentation, with some involving allocations to fictitious entities.
Speaking on the matter, Cardoso emphasized the gravity of the irregularities, describing the transactions under investigation as “clearly unlawful.” He stated that law enforcement agencies were focused on unraveling issues surrounding forex transactions that failed to meet regulatory criteria.
While the investigation is ongoing, the CBN chief reassured stakeholders of the bank’s commitment to transparency and accountability in the forex market. He highlighted recent efforts to clear valid foreign exchange backlogs, which have contributed to stabilizing the naira against the dollar.
However, the ongoing probe may lead to the summoning of bank chiefs and CEOs of implicated firms by security agencies. The duration of the investigation remains uncertain.
Meanwhile, some members of the organized private sector have expressed dissatisfaction with the rejection of their forex exchange bids by the CBN. They have raised concerns about the transparency of the settlement process and are considering legal action against commercial banks for non-honoring of forex requests.
In response to stakeholders with pending forex requests, Cardoso urged them to engage in transparent market transactions, emphasizing the need for compliance with regulatory guidelines.
The ongoing investigation underscores the CBN’s commitment to ensuring integrity and stability in Nigeria’s financial system. As the probe progresses, further developments are expected in the coming days.
