•How, between 2014 and 2023, the EFCC required 52 businesses to submit currency allocation forms
In furtherance of the ongoing investigation into the alleged misuse of the foreign exchange allocations by the immediate past Governor of the Central Bank of Nigeria, Godwin Emefiele, agents of the Economic and Financial Crimes Commission stormed the Dangote Industries Limited headquarters in Ikoyi, Lagos, on Thursday.
The Dangote Group, owned by billionaire Aliko Dangote, and 51 other companies under the Emefiele-led CBN are the subject of an investigation by the anti-graft agency into purported preferential forex allocations.
The anti-graft agents were present at the Dangote, according to two high-ranking EFCC officials, though they would not comment on why.
“I can confirm that our men are there, but I can’t comment on the reason for their presence there,” one of the officials stated.
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 currency allocations made to the companies between 2014 and June 2023, were requested by the EFCC from the firms.
While some businesses followed the directive, others reportedly requested more time to obtain the necessary paperwork.
Multiple exchange rates were in effect in Nigeria until June 2023, which experts claimed was a contributing factor to market instability, swings, and distortions in forex allocation.
The naira’s inflationary pressures and the burgeoning black market activities that were supposed to have compromised the CBN’s monetary policies’ efficacy were attributed to the policy.
The employees and guests of the Dangote headquarters were taken aback by the EFCC detectives’ unexpected operation, which took place during regular business hours.
The search was said to have started at 3 p.m. and continued for several hours.
President Bola Tinubu dismissed Emefiele from office in June 2023, but not before the operatives stormed offices and carted away various financial records pertaining to FX allocations to the group between 2014 and June 2023.
They were unable to verify right away whether the commission had detained any company officials.
According to this newspaper, Emefiele allegedly deposited public funds in foreign currencies in as many as 593 bank accounts across the US, the UK, and China without the board of directors of the apex bank or the CBN Investment Committee’s consent. This was discovered by Jim Obazee, the Special Investigator on the CBN and Related Entities.
CBN investigation
According to Obazee, the former governor of the Central Bank of Nigeria (CBN) is accused of manipulating the value of the naira and committing fraud in the e-Naira initiative, in addition to allegedly putting £543, 482,213 in fixed deposits in UK banks without authorization.
The investigator recommended that Emefiele, who is currently facing prosecution for alleged N1.2 billion procurement fraud, be charged again for his handling of the CBN naira redesign policy and alleged illegal currency issuance under section 19 of the CBN Act in a report that was submitted to the President on December 20, 2023.
In addition, he suggested that 12 senior CBN directors and Tunde Sabiu, a former adviser and nephew of former President Muhammadu Buhari, be charged with crimes alongside the former governor of the CBN.
The contents of Obazee’s investigative report were described by Emefiele as “false, misleading, and calculated to disparage my person, injure my character, and serve the selfish interest of the private investigator,” as she refuted the indictments.
According to a senior EFCC officer, the agency is looking into claims that Emefiele allocated preferred foreign exchange in violation of the CBN Act and current financial regulations.
According to the person, “The EFCC is looking into the Dangote Group for the preferential foreign exchange allocations that former CBN Governor Godwin Emefiele made in violation of the CBN Act and current financial rules and regulations.”
“The commission found that the allocations were not approved by the former President Muhammadu Buhari, so it was more of a way for the former CBN governor and his cronies to launder money through forex and Bureau De Change operators. About 51 other big companies are also being investigated over the development.”
Dele Oyewale, the EFCC spokesman, refused to comment when asked regarding the raid on the Dangote headquarters.
Sunday Esan, the spokesperson for Dangote Industries, did not answer calls or messages on WhatsApp.
As at the time this article was filed, Anthony Chiejina and Francis Browne, two additional employees of the company’s communications department, had not returned calls or texts.
Firm accepts invitation
Yet a Dangote representative asserted that the company had complied with the EFCC’s request and questioned the commission’s decision to make them seem bad.
He said, “We were invited to the EFCC office earlier; we don’t know why they (EFCC officers) came to our office again. As a result, the Dangote representatives brought and submitted all of the paperwork. We’re not sure why they ultimately chose to come back to our office.
We would like to know what they came for from our office after we accepted their invitation. Since we had given them all the documentation they requested, they departed empty-handed. The EFCC that visited our office is also the one informing the media that they are looking into us.
Prior to the most recent event, Dangote Industries had denied in November 2023 that it was complicit in money laundering and forex malpractices totaling an astounding $3.4 billion that were purportedly made possible by Emefiele.
The conglomerate refuted allegations that the funds were transferred to its non-Nigerian businesses, resulting in illegal financial flows and round-tripping. The company is a mainstay of Nigeria’s economic landscape and a prominent player in the African economy.
It alleged the accusation was funded by a competing business organization.
Dangote Industries countered by citing previous CBN permits from 2010 to 2018 that allowed it to buy $3.755 billion in foreign exchange to fund its projects throughout Africa, of which only 46.70% were used.
The corporation emphasized that all of the foreign exchange used for its investment endeavors came from the interbank market, and that all transactions were backed by Letters of Credit in accordance with global norms.
Speaking about the investigation, Musa Rafsanjani, the Executive Director of the Civil Society Legislative and Advocacy Center, stated that the EFCC should be given the freedom to carry out its duties and that the search conducted by the anti-graft agency at the Dangote headquarters may have been a component of an evaluation of the previous administration.
“In my opinion, let the EFCC do out its duties. As everyone knows, there are a number of issues pertaining to our financial institutions. It’s likely that some people got around the process by using their connections.
“I don’t see why there would be an issue. This could be a standard investigation to see whether the previous government complied with due process requirements or not.
According to Forbes Real-Time Billionaires, the EFCC investigation was taking place at the same time that South African billionaire Johann Rupert overtook Aliko Dangote to become the richest person in Africa.
Dangote fell to the second spot on Forbes Real-Time Billionaires, a database that tracks daily changes in the net worth of wealthy people worldwide. Dangote’s wealth decreased from $13.5 billion in 2023 to $9.7 billion as of January 4, 2024, a $3.8 billion loss.
