Forex

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

Published

4 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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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

3 days 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

3 days 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

4 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.