Forex scandal: EFCC probes $347 billion funds allocated during Jonathan, Buhari’s tenure

The Economic and Financial Crimes Commission is has intensified its investigation of $347 billion allocated for local and foreign firms in the past nine years when the former President Goodluck Ebele Jonathan and Muhammadu Buhari ruled the nation.

The EFCC has included investigation of foreign firms operating Nigeria due to alleged shady deals in its early search for foreign exchanges, beginning from January, 2014 to May, 2023.

Within the year under probe which include part of the former President Goodluck Ebele Jonathan’s final year in office and the entire eight year of the former President Muhammadu Buhari’s tenure of office, the anti-graft agency is looking into at least $347.49 billion from the apex bank to service their foreign exchange needs and obligations within the nine-year period.

The Central Bank of Nigeria maintains data on the flow of foreign exchange allocated companies and firms in its sectoral utilization called CBN’s forex data.

Sectoral utilisation of foreign exchange also reveals how foreign exchange is allocated and used across different sectors or industries of the economy.

The development came against the backdrop of the EFCC’s probe of forex allocations to Dangote Group and 51 other companies under the immediate past Governor of the Central Bank of Nigeria, Godwin Emefiele.

Before now, Dangote Industries had, in November 2023, denied allegations that it was involved in forex malpractices estimated at $3.4bn and allegedly facilitated by Emefiele.

The conglomerate refuted claims that the money was funneled to its non-Nigerian subsidiaries, prompting illicit financial flows and round-tripping.

In a rebuttal, Dangote Industries referred to past approvals granted by the CBN between 2010 and 2018, which allowed it to purchase forex totaling $3.76bn for the funding of its projects across Africa, of which it said only 47.70 per cent was utilised.

The company stated that forex for its investment undertakings was sourced from the interbank market, with all transactions supported by Letters of Credit in line with international standards.

Dangote Group had since stated that it was cooperating with the EFCC.

The firm said, “We remain committed to providing the EFCC with all necessary information and cooperation.”

According to reports, some companies affected by the EFCC’s directive have complied, while several others asked for time to get the proper documents.

Following its raid on Dangote Group, the EFCC has reportedly written to over 85 entities comprising corporate organisations and individuals over an ongoing investigation into alleged fraudulent foreign exchange allocations under Emefiele.

Unconfirmed reports claimed Emefiele might face an amended charge to include discoveries in the ongoing probe of forex transactions under his probe.

According to reports, the anti-graft agency has summoned senior officials of the affected entities and asked them to provide detailed documents of their foreign exchange transactions covering the last 10 years.

Forex scarcity has plagued the Nigerian economy in recent years, with the Central Bank of Nigeria owing FX backlogs and more.

This has led to the shutting down of many firms. About five multinationals have closed down operations, fully or partially, in the last 10 months. One of the firms, Procter & Gamble, stated that it had become increasingly difficult to operate in Nigeria.

The Chief Financial Officer of the group, Andre Schulten, said, “The other reality that arises in some of these markets is that it gets increasingly difficult to operate and create U.S dollar value. So, when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment.”