Categories: Forex

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

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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