The Economic and Financial Crimes Commission has begun an investigation into at least $347 billion issued to several companies between January 2014 and June 2023.
Local and foreign companies in Nigeria got at least $347.49 billion from the apex bank to service their foreign exchange needs and obligations within 10 years.
This followed new investigations that saw the anti-graft agency extend its forex allocation probe to include some foreign firms operating in Nigeria.
This occurred in the context of the EFCC’s investigation into foreign exchange allocations to the Dangote Group and fifty-one other companies under the direct supervision of Godwin Emefiele, the former governor of the Central Bank of Nigeria.
Local and foreign companies involved
Central Bank of Nigeria data analysed by The Punch showed that local and foreign companies in Nigeria got at least $347.49 billion from the apex bank to service their foreign exchange needs and obligations within 10 years.
Of all the companies that reportedly received Forex under Emefiele, the news agency reported that the EFCC may have chosen to focus on the 52 companies because they got the largest chunk of the $347 billion within the timeframe.
Beneficiaries of Forex
According to a review of the CBN’s quarterly statistical bulletin, the industries that benefited from the forex allocation under the import category were manufacturing, transportation, food and beverage, agricultural, minerals, and oil.
Other industries included travel and tourism, travel, culture, and sports services; distribution; education; environment; finance; construction and allied engineering; and education, environment, health, and social services.
The bank distributed $65.99 billion in 2014, $44.6 billion in 2015, $25.5 billion in 2016, $27.64 billion in 2017, $40.81 billion in 2018, $43.99 billion in 2019, $28.24 billion in 2020, and $16.4 billion between January 2021 and September 2021, according to a breakdown of the allocation by year.
Additionally, $17.38 billion was distributed from October 2021 to March 2022, and $36.88 billion was provided from April 2022 to June 2023.
Full list of companies that received Forex from CBN
The companies involved cut across the import and the invisible category
Import Category:
Industrial sector – $69.71bnProducts – $24.88 billion Manufactured products – $32.73bnTransport sector – $6.67bnAgricultural sector – $2.83bnMinerals – 2.88bnOil sector – $37.46bn
Invisible category:
Financial services – $136.54bnBusiness services – $13.47bnCommunication services – $3.08bnConstruction and related engineering services – $147.71mDistribution services – $257.99mEducation services – $4.98bnEnvironmental services – $40,000Health-related and social services – $31.03mTourism and travel-related services – $721.54mRecreational, cultural and sporting services – $3.18m Transport services – $7.32bnOther services not included elsewhere – $3.79bn
Fitch speaks on Nigeria’s ability to clear forex backlog
Fitch, a global credit rating agency, has stated that the CBN does not have enough Forex to clear the country’s demand backlog.
Gaimin Nonyane, the director of Middle East and Africa sovereigns at Fitch, said this in a webinar, according to a Vanguard report.
She also warned that the country’s revenue ratio is a key weakness in its sovereign credit rating.
