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

Published

11 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

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IMF mission concludes 4th loan program assessment in Egypt

Published

2 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.