Forex

EFCC Probes $347 Billion Forex Allocations to Local and Foreign Companies in Nigeria

Published

3 months ago

January 25, 2024

The Economic and Financial Crimes Commission (EFCC) has launched an extensive investigation into the allocation of at least $347 billion to various companies operating in Nigeria between January 2014 and June 2023.

Recent revelations indicate that the EFCC’s scrutiny has now extended to encompass certain foreign firms conducting business within Nigeria.

Upon analyzing data obtained from the Central Bank of Nigeria, it has been disclosed that both local and foreign entities received a cumulative total of $347.49 billion from the apex bank.

This allocation was intended to facilitate their foreign exchange needs and meet financial obligations over the past decade.

The breakdown of this information delves into the sectoral utilization of the Central Bank of Nigeria’s forex data, providing insights into how foreign exchange was allocated and utilized across various sectors and industries within the nation’s economy.

This development unfolds against the backdrop of the EFCC’s ongoing investigation into forex allocations, particularly those directed towards Dangote Group and 51 other companies during the tenure of the immediate past Governor of the Central Bank of Nigeria, Godwin Emefiele.

Dangote Industries, a conglomerate implicated in alleged forex malpractices amounting to $3.4 billion, has vehemently denied these allegations.

In November 2023, the conglomerate refuted claims that the funds were funneled to its non-Nigerian subsidiaries, resulting in illicit financial flows and round-tripping.

Dangote pointed to Central Bank of Nigeria approvals from 2010 to 2018, permitting $3.76 billion forex for African projects, of which 47.70 percent was utilized, sourced from the interbank market with Letters of Credit.

In response to the ongoing investigation, Dangote Group has pledged to collaborate with the anti-graft agency, stating, “We remain committed to providing the EFCC with all necessary information and cooperation.”

Numerous companies affected by the EFCC’s directive have reportedly complied, while others have requested additional time to gather the necessary documents.

Following the raid on Dangote Group, the EFCC has issued summonses to senior officials of the entities, seeking detailed foreign exchange transaction documents spanning the last 10 years.

The investigation has expanded to include foreign firms like Crane Currency Limited, Gleseck+Deverint GmbH, De La Rue Ltd, Oberthur Fiduciaire SAS, and Orelll Fussli.

This development arises amidst the ongoing forex scarcity impacting Nigeria’s economy, and unconfirmed reports suggest that Godwin Emefiele may face amended charges based on the ongoing discoveries.

The EFCC, through an internal memorandum, has officially sought information from relevant entities as it intensifies efforts to unravel potential forex irregularities.

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Forex

Yen Hits 34-Year Low Against Dollar Despite Bank of Japan’s Inaction

Published

1 day ago

April 26, 2024

Samed Olukoya

The Japanese yen plummeted to a 34-year low against the US dollar, sending shockwaves through global financial markets.

Despite mounting pressure and speculation, the Bank of Japan (BOJ) chose to maintain its key interest rate.

The yen’s relentless slide, extending to 0.7% to 156.66 against the dollar, underscores deep concerns about Japan’s economic stability and the efficacy of its monetary policies.

BOJ Governor Kazuo Ueda’s remarks at a post-meeting news conference did little to assuage fears as he acknowledged the impact of foreign exchange dynamics on inflation but downplayed the yen’s influence on underlying prices.

Investors, already on edge due to the yen’s dismal performance this year, are now bracing for further volatility amid speculation of imminent intervention by Japanese authorities.

The absence of decisive action from the BOJ has heightened uncertainty, with concerns looming over the potential repercussions of a prolonged yen depreciation.

The implications of the yen’s decline extend far beyond Japan’s borders, reverberating across global markets. The currency’s status as the worst-performing among major currencies in the Group of Ten (G-10) underscores its significance in the international financial landscape.

Policymakers have issued repeated warnings against excessive depreciation, signaling a commitment to intervene if necessary to safeguard economic stability.

Finance Minister Shunichi Suzuki reiterated the government’s readiness to respond to foreign exchange fluctuations, emphasizing the need for vigilance in the face of market volatility.

However, the lack of concrete action from Japanese authorities has left investors grappling with uncertainty, unsure of the yen’s trajectory in the days to come.

Market analysts warn of the potential for further downside risk, particularly in light of upcoming economic data releases and the prospect of thin trading volumes due to public holidays in Japan.

The absence of coordinated intervention efforts and a clear policy stance only exacerbates concerns, fueling speculation about the yen’s future trajectory.

The yen’s current predicament evokes memories of past episodes of currency turmoil, prompting comparisons to Japan’s intervention in 2022 when the currency experienced a similar downward spiral.

The prospect of history repeating itself looms large, as market participants weigh the possibility of intervention against the backdrop of an increasingly volatile global economy.

As Japan grapples with the yen’s precipitous decline, the stakes have never been higher for policymakers tasked with restoring stability to the currency markets. With the world watching closely, the fate of the yen hangs in the balance, poised between intervention and inertia in the face of unprecedented challenges.

Naira

Dollar to Naira Black Market Today, April 25th, 2024

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 25, 2024

Samed Olukoya

Naira to Dollar Exchange- Investors King Rate - Investors King

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,260 and sell it at N1,250 on Wednesday, April 24th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,300
Selling Rate: N1,290

Naira

Dollar to Naira Black Market Today, April 24th, 2024

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

3 days ago

April 24, 2024

Samed Olukoya

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,250 and sell it at N1,240 on Tuesday, April 23rd, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined slightly when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.