Forex Crisis: EFCC Launches 7,000-Man Task Force to Combat Dollar Racketeers

In an effort to alleviate the pressure on the Nigerian naira amidst a Forex crisis, the Economic and Financial Crimes Commission (EFCC) has deployed a 7,000-man special task force across its 14 zonal commands to crack down on dollar racketeers.

According to the spokesperson for the anti-graft agency, Dele Oyewale, the EFCC has summoned proprietors of private universities and other educational institutions charging tuition fees in dollars, aiming to address the recent decline in the naira’s value against the dollar.

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, disclosed to the House of Representatives that Nigerians spent $98 billion over the past decade on foreign education, healthcare, and personal travels, contributing to the naira’s depreciation.

Cardoso outlined factors such as speculative forex demand, inadequate forex due to low remittance of crude oil earnings, increased capital outflows, and excess liquidity from fiscal activities as causes of the exchange rate volatility.

To counter these challenges, a comprehensive strategy has been initiated, including unifying FX market segments, clearing outstanding FX obligations, adjusting operational mechanisms for Bureau De Change operators, enforcing Net Open Position limits for commercial banks, and adjusting the remunerable Standing Deposit Facility cap.

Cardoso revealed that between 200 and 2020, foreign education expenses amounted to $28.65 billion, medical treatment abroad cost $11.01 billion, and Personal Travel Allowances accounted for $58.7 billion.

Concerned about the situation, Finance Minister Wale Edun met with the CBN Governor and EFCC Chairman to strategize on stabilizing the naira. The CBN directed Deposit Money Banks to sell excess dollars by February 1, 2024, and warned against hoarding foreign currencies.

In response, the EFCC set up a special task force across its zonal commands, arresting individuals issuing invoices in dollars and mutilating the naira. Private universities charging fees in foreign currencies were also summoned for briefing.

The EFCC clarified that while sensitization has taken place, no proprietors will face prosecution unless they continue violating the law by accepting foreign currency.

The Association of Foreign Airlines President, Dr. Kingsley Nwokoma, expressed confidence that the EFCC’s actions wouldn’t affect their members, but urged banks to repatriate funds from tickets sold in naira.

Amid diverse opinions on the EFCC’s actions, it remains a key initiative in addressing the economic challenges posed by dollar racketeering and stabilizing the nation’s volatile exchange rate.