The Economic and Financial Crimes Commission (EFCC) has revealed that Nigeria lost a staggering N2.9 trillion to contract fraud in the last three years. This was disclosed by the EFCC Chairman, Ola Olukoyede, at a press conference on Monday.
According to Olukoyede, the commission uncovered several cases of contract fraud involving public officials and private contractors who colluded to divert funds meant for developmental projects for their personal enrichment. He said that some of the projects involved road construction, power generation, health care, education, and agriculture.
Olukoyede said that the EFCC was determined to recover the looted funds and bring the perpetrators to justice. He also urged Nigerians to report any suspicious activities or transactions involving public contracts to the commission. He said that the EFCC was working with other anti-corruption agencies and civil society organizations to ensure transparency and accountability in public procurement.
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He said that contract fraud was one of the major challenges facing Nigeria’s development and economic growth. He said that the funds lost to contract fraud could have been used to provide basic amenities and services for millions of Nigerians who are living in poverty and deprivation. He said that the EFCC would not relent in its fight against corruption and would continue to protect the interest of the Nigerian people.
E-commerce business is good in Nigeria but the cost of everything mostly dollar rate
Nigeria is one of the fastest-growing e-commerce markets in Africa, with a projected revenue of $4.9 billion by 2025. Many entrepreneurs and businesses are tapping into the opportunities offered by online platforms, such as increased customer reach, lower operational costs, and improved efficiency. However, e-commerce in Nigeria also faces some challenges, especially in terms of currency fluctuations and exchange rates.
One of the major factors that affect e-commerce in Nigeria is the volatility of the naira against the dollar. The naira has depreciated significantly in recent years, due to various economic and political factors, such as low oil prices, foreign exchange shortages, inflation, and insecurity. This has made it difficult for e-commerce businesses to plan their budgets, manage their cash flows, and source their products and services from abroad.
For instance, many e-commerce platforms rely on imported goods, such as electronics, fashion items, and beauty products, to meet the demand of their customers. However, the high cost of importing these goods, due to the weak naira and high tariffs, has reduced their profit margins and competitiveness. Moreover, some e-commerce businesses have to pay their suppliers and service providers in dollars, which exposes them to exchange rate risks and increases their operational costs.
To cope with these challenges, some e-commerce businesses have adopted various strategies, such as:
Sourcing locally made products and services, which are cheaper and more accessible than imported ones. Hedging against currency risks by using forward contracts, futures contracts, or options contracts to lock in favorable exchange rates for future transactions. Diversifying their revenue streams by offering other services, such as logistics, digital marketing, or consulting, to complement their core e-commerce activities.
Partnering with other e-commerce platforms or aggregators to leverage their network effects, economies of scale, and bargaining power. Offering flexible payment options to their customers, such as pay-on-delivery, mobile money, or installment plans, to increase their affordability and convenience.
E-commerce in Nigeria has a lot of potential to grow and contribute to the economic development of the country. However, it also requires a stable and conducive environment to thrive. Therefore, it is important for the government and other stakeholders to address the challenges faced by e-commerce businesses, especially in terms of currency stability and exchange rate management.