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Nigeria: Anti-graft agency EFCC raids Dangote offices

Published

11 months ago

January 5, 2024

Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), has carried out a raid on the headquarters of Dangote Industries Limited in Ikoyi, Lagos, amidst an ongoing investigation of forex management by the Central Bank of Nigeria under former governor, Godwin Emefiele.

The Dangote Group, owned by billionaire Aliko Dangote, and 51 other companies are the subject of an investigation by the anti-graft commission into purported preferential forex allocations under the Emefiele-led CBN. The anti-graft agents were present at the Dangote offices, according to two high-ranking EFCC officials, though they would not comment on why.

Nigeria is currently looking for more investments to help boost its economy which is struggling partly due to the foreign exchange crisis largely between 2015-2023, an era which saw the country’s currency, Naira, fall into one of the worst-performing currencies in the world.

As of June 15, the country’s gross foreign exchange reserves were $34.62 billion. However, as of December 1, 2023, the foreign exchange reserves decreased to $32.97 billion, based on data from the CBN.

The country maintained several exchange rates up until June 2023, which analysts claimed was a factor in market volatility, fluctuations, and distortions in the allocation of foreign exchange. The government has sought to stabilize the economy with two major policy actions: the removal of the fiscal bleeding in petrol subsidies and the unification of the exchange rate.

One of the officials said, “I can confirm that our men are there, but I can’t comment on the reason for their presence there.”

According to sources, the anti-graft commission had previously written to the 52 businesses, asking them to submit documentation proving how they had allocated and used foreign currency that had been sold to them at official rates over the previous ten years.

Forms A and M, which described the forex allocations made to the companies between 2014 and June 2023, were requested by the EFCC from the firms.

The last eight years have seen an audit of Nigeria’s financial and fiscal status. The apex bank under Emefiele is accused of depositing public funds in foreign currencies in as many as 593 bank accounts in the US, the UK, and China without the board of directors’ and the CBN Investment Committee’s consent, according to recent findings by Jim Obazee, Special Investigator on the CBN and Related Entities.

Related Topics:Central Bank of Nigeria Dangote EFCC Featured Foreign exchange Nigeria

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IMF mission concludes 4th loan program assessment in Egypt

Published

3 days ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

4 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.