The Economic and Financial Crimes Commission (EFCC) has embarked on a nationwide manhunt against individuals involved in currency racketeering, aiming to safeguard Nigeria’s foreign exchange market and curb speculative activities.
According to sources within the EFCC, the initiative seeks to identify and prosecute those engaged in illegal currency-related activities, including foreign exchange speculation and fraudulent practices.
“The commission is determined to ensure that the foreign exchange market operates in a fair and transparent manner and that Nigeria’s economy is protected from criminal activities that could lead to its destabilization,” a source from the agency said.
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The government’s rationale behind this crackdown is to address illegal currency-related activities, including foreign exchange speculation and fraudulent practices. By targeting individuals engaged in these activities, the government seeks to create a more transparent and fair operating environment for the foreign exchange market. This aligns with the broader objectives of protecting Nigeria’s economy from destabilization caused by criminal activities.
The EFCC’s operations have resulted in significant arrests, particularly in key areas such as the Federal Capital Territory, Abuja. However, the crackdown has also sparked controversy and criticism, with concerns raised about potential ethnic bias and the targeting of specific demographics, particularly those associated with the Bureau de Change.
To address these concerns, the EFCC has clarified its focus on unlicensed money changers rather than legitimate Bureau De Change (BDC) operators who comply with federal regulations. Dele Oyewale, the spokesperson for the EFCC, said the anti-graft agency was going after “unlicensed money changers.”
“Unlicensed operators are behind the exchange rates crisis in this country. Those who are licensed would be guided by the rules and regulations of federal authorities,” Mr Oyewale said.
He added, “So what we’re doing is to go after the unlicensed money changers. It is to separate those who are legitimate BDC operators from the criminal speculators. We need to know where we stand in how we manage our exchange rates.”
Social media has been agog with videos of the EFCC’s raid on BDCs across the country.
Happening now: EFCC goes after Bureau De Change operators in Sabo Ibadan. pic.twitter.com/wK05R3H4OH
— Oyo Affairs (@Oyoaffairs) February 21, 2024
In addition to the EFCC’s efforts, the government has deployed a substantial task force across its zonal commands to crack down on dollar racketeers.
Moreover, the National Security Adviser has directed various law enforcement agencies to intensify efforts against forex market speculators, highlighting a coordinated approach to addressing the forex crisis.
However, the move which denotes that the Nigerian government’s latest efforts to boost foreign exchange (FX) are currently centered around a nationwide crackdown on currency racketeering has been severely criticized. Critics argue that targeting BDC operators is not what is required to address the underlying issues causing FX volatility.
There are concerns about the lack of comprehensive strategies by the government to boost FX supply and stabilize the economy effectively. Despite announcements of plans to increase FX supply by $10 billion, tangible progress has yet to materialize, leaving the economy vulnerable to continued volatility in the foreign exchange market.
Despite the raids on BDCs, the naira’s value continued to plummet across the country. As of Wednesday, the naira depreciated further to N1,900 against the dollar in intraday trading at the parallel market, while trading at approximately N1,555.24 per dollar at the official market (NAFEM).
There are concerns over the worsening situation, with predictions that the exchange rate could spiral to an unprecedented 2,000 naira per dollar if decisive measures are not implemented promptly.