VenturesNow

Nigeria: Anti-graft agency EFCC summons Dangote officials over alleged FX allocation abuse

Published

12 months ago

January 6, 2024

Some officials of the Dangote Group have been summoned by the Economic and Financial Crimes Commission (EFCC) as part of an ongoing investigation into an alleged corrupt foreign exchange regime under the previous leadership of the Central Bank of Nigeria.

In furtherance of the investigation into the alleged abuse of the foreign exchange allocations, EFCC agents stormed the Dangote Industries Limited headquarters in Ikoyi, Lagos, on Thursday.

The decision to call in the officials to bring the documents to Abuja on Tuesday was made after it was learned on Friday that while the operatives had taken some documents from the group’s head office on Thursday, they had not covered all of the transactions.

After the commission’s agents broke into the headquarters of Aliko Dangote’s conglomerate, it was learned that the group’s chairman was in the United States of America and not in Nigeria. However, according to sources quoted by Nigerian newspaper, Punch, he is expected to return to Nigeria next week to attempt to personally resolve the issue.

Although it was implied that he knew about the anti-corruption agency’s demands, it was unclear whether he was told of their plans before their agents stormed his offices.

Senior company executives, however, were required to provide the commission “detailed and unambiguous documents on the demands by the commission,” according to a highly placed EFCC official.

“Yes, the Dangote officials requested and were given time to obtain all the required documentation. It is not intended to come across as witch-hunting anyone. The EFCC official spoke to one of our correspondents under the condition of anonymity because he was not authorised to speak to the media about the development.

“What the commission wants is evidence and details of how government funds were allocated, and that is all,” the official stated.

Analysts contend that the country’s multiple exchange rates, which it maintained until June 2023, contributed to market volatility, fluctuations, and distortions in the distribution of foreign exchange.

Two key policy initiatives that the government has pursued to stabilise the economy are the unification of the exchange rate and the elimination of the fiscal bleeding associated with petrol subsidies.

Related Topics:CBN EFCC Featured Nigeria

Click to comment

VenturesNow

IMF, Egypt reach agreement for fourth review of Egypt’s $1.2 billion loan request

Published

5 hours ago

December 26, 2024

Ifeoluwa Dada

Egypt and the International Monetary Fund (IMF) have reached a staff-level agreement over the fourth review of the Extended Fund Facility arrangement, which might lead to a $1.2 billion payout under the program.

In March, Egypt, struggling with rising inflation and cash shortages, consented to the $8 billion, 46-month facility. Its economic problems were made worse by a precipitous drop in Suez Canal revenue over the last year due to regional tensions.

Over the next two years, Egypt’s government has committed to raising its tax-to-revenue ratio by 2% of GDP, according to the IMF, emphasising removing exemptions rather than raising taxes.

According to a statement from the IMF, this would allow it to expand social expenditure to support vulnerable populations.

“While the authorities’ plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilization efforts,” the statement said.

According to the IMF statement, Egypt had also committed to maintaining its commitment to a flexible currency rate and to taking more urgent action to guarantee that the private sector became the primary driver of development.

The IMF’s executive board still has to accept the fourth review’s staff-level agreement.

VenturesNow

Libya’s eastern govt accepts petrol subsidy elimination

Published

5 hours ago

December 26, 2024

Ifeoluwa Dada

In a recent statement, the eastern government of Libya claimed it had reached a consensus on a plan to eliminate gasoline subsidies and would draft a mechanism to carry out the accord.

Additional information on the idea was not released by the administration led by Osama Hamad, a challenger to the internationally acknowledged Tripoli-based government.

However, it is uncertain if Hamad’s government would be able to carry out the plan in the divided nation.

According to the Global Petrol Prices online tracker, a litre of gasoline costs just 0.150 Libyan dinars ($0.03) in OPEC member Libya, making it the second-cheapest in the world.

Following an uprising against former ruler Muammar Gaddafi in 2011, smuggling networks have thrived in the ensuing political unrest and armed fighting. In 2014, conflicting eastern and western governments separated the nation.

A World Bank analysis estimates that the annual value of fuel smuggling from Libya is at least $5 billion.

In a meeting with Mari Barrasi, the deputy governor of the Central Bank of Libya (CBL), located in Tripoli, and four members of the bank’s board of directors, Hamad in Benghazi supported the idea of removing subsidies.

The CBL’s Benghazi branch offices served as the venue for the conference.

The eastern parliament appointed Hamad in 2023 to succeed Abdulhamid Dbeibah, who had been put in position in 2021 under a U.N.-backed procedure that the parliament said had lost its legitimacy.

Dbeibah, who is located in Tripoli, stated in January that he will conduct a public poll on the topic of eliminating gasoline subsidies, but he hasn’t done anything about it since.

According to CBL figures, gasoline subsidies cost 12.8 billion Libyan dinars between January and November of this year. 4.8 Libyan dinars to $1 is the official exchange rate.