Dangote Accuses BUA Group of Orchestrating Allegations of Illegal Forex Exchange Deals

The management of Dangote Industries Limited (DIL) has issued a stern rebuttal against allegations of engaging in illegal foreign exchange deals. The company has cautioned against spreading these allegations, emphasizing that such actions undermine the nation’s economic stability.

These allegations surfaced through sponsored reports in the online media, suggesting that DIL was under investigation for alleged illegal foreign exchange transactions and money laundering by Special Investigator Jim Obazee, who is probing the Central Bank of Nigeria (CBN) during the tenure of former CBN governor, Mr. Godwin Emefiele.

DIL categorically dismissed these allegations, describing them as baseless and reminiscent of a similar report from 2016, which was allegedly propagated by a competitor, BUA Group, masquerading as a concerned Nigerian.

The company recalled that the 2016 report had claimed that around “$3 billion of foreign exchange sourced from the CBN were diverted to other Dangote companies outside Nigeria,” a practice that was alleged to encourage money laundering. DIL has clarified that this 2016 report has now resurfaced with a fresh slant, purporting to be a new petition directed at President Bola Ahmed Tinubu and Mr. Jim Obazee, the Special Investigator probing the CBN. Various blogs and social media platforms have been circulating variations of this misleading information, damaging the company’s reputation.

DIL stressed that foreign exchange for its numerous projects adheres to CBN approvals and is sourced strictly from the Interbank Foreign Exchange market. Letters of Credit are established to facilitate the construction of operational plants, heavy equipment purchases, and spare parts acquisition for Dangote Cement plants. The terms and conditions for payments are clearly specified in the Letters of Credit instruments, following international standards.

Furthermore, DIL has clarified that funds invested in its expansion projects across African countries represent legitimate capital investments in those countries. The repatriation of $576 million in foreign exchange has contributed to boosting Nigeria’s foreign exchange earnings and stabilizing the FX market.

DIL reaffirmed its commitment to funding its projects through the Interbank FX market in compliance with CBN directives and expressed that it maintains full transparency in its financial transactions.