Forex

EFCC Arrests Abuja, Lagos BDC Operators

The Economic and Financial Crimes Commission (EFCC)

Published

2 years ago

November 17, 2022

Operatives of the Nigerian ombudsman, the Economic and Financial Crimes Commission (EFCC) in a recent raid in Lagos and Abuja, arrested some Bureau De Change (BDC) operators in the country’s twin economic and political capitals.

The latest release obtained by Investors King from EFCC revealed the exercise “was incidental to the Commission’s overall efforts in sanitizing the foreign exchange (forex) sector.”

EFCC Director of Operations, Abdulkarim Chukkol stated this on Monday, November 14, 2022, while fielding questions on “Good Morning Nigeria,” a breakfast programme on the Network Service of the Nigeria Television Authority, (NTA). Chukkol who stood in capacity for the Commission’s Executive Chairman, Abdulrasheed Bawa, was among the prominent personalities invited to discuss the topic ‘’Sanitizing Ungoverned Operators in the Forex Sector.”

Chukkol confirms the arrest of BDC operators and currency speculators in the parallel market was not indiscriminate, but a product of intelligence. He said, “At EFCC, we work with intelligence and with other stakeholders; and when we talk of illegal forex operators you cannot just invite people on the street, even though sometimes you could, but generally you do not have a choice but to make arrest.”

He stressed that the Commission considers foreign exchange malpractice as an economic crime against the Nigerian state, adding that the Commission as far back as 2016 established a full-fledge Section known as ‘Foreign Exchange Malpractices Section.”

He revealed EFCC has for over ten years, maintained a visible presence at all airports across the country to checkmate incidences of bulk cash movement outside Nigeria – which is another aspect of this menace.

Through the Commission’s presence at major gateways into the country, many arrests of cash smugglers have been made and bogus amounts in foreign currencies recovered.

EFCC personnel in previous operations had apprehended many, with Chukkol affirming “Some were arrested with excess of $6 Million (Six Million United States Dollars), others with $2 Million (Two Million United States Dollars), and we know that these huge sums were not meant to be used in buying goods but stolen monies being laundered out of the country.”

The ombudsman further stated that EFCC not only recovered some of these funds but facilitated their forfeiture to the Nigerian Federal Government, while the culprits have since been prosecuted.

He emphasized the need for active inter-agency and stakeholder’s collaboration, pointing out that many of the over 6,000 registered BDCs do not belong to the Association of Bureaux De Change Operators of Nigeria (ABCON) and therefore out of the coverage of regulators.

He reminded that “The Central Bank of Nigeria (CBN) guidelines are clear regarding returns by BDCs, but how many of them do this?” referring to non-compliance by the exchangers.

Other discussants in the programme include the Director of Monitoring Policy Department of CBN, Dr. Hassan Mahmud; President, Association of Bureau De Change of Change Operators of Nigeria, Dr. Aminu Gwadebe; a finance and investment analyst, Niyi Akinsuji; and a commentator on financial issues and Managing Director of Timeline Consult, Shuabu Idris. Their respective contributions identified the issue of Nigeria being an import driven economy, lack of adequate penalty, shortage of trained manpower, and identification of what truly constitutes ‘black market’ beyond the institutional banking system, as some of the problems impeding the fight against foreign exchange malpractice in the country.

EFCC is clamping down on illegal BDC operators owing to a recent report that the depreciation of the naira was in part due to the activities of black market.

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Naira

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

24 hours ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,540
Selling Rate: ₦1,530

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

1 day ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

2 days ago

May 16, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 2024.

This indicates a decline in the Naira exchange rate compared to the current rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.