Forex scandal: EFCC combs Dangote Headquarters requests records, investigates 51 firms

The EFCC mandated that 52 companies submit forex allocation forms between 2014 and 2023.

The Economic and Financial Crimes Commission agents raided the Dangote Industries Limited headquarters in Ikoyi, Lagos, on Thursday. This action was taken as part of the ongoing investigation into the alleged misuse of foreign exchange allocations by Godwin Emefiele, the former governor of the Central Bank of Nigeria.

The alleged preferential forex allocations to the Dangote Group, headed by billionaire Aliko Dangote, and 51 other companies under the CBN run by Emefiele are being investigated by the anti-graft commission.

The presence of anti-graft operatives at the Dangote was verified by two senior EFCC officials, who would not comment on the cause for their presence.

“It is true that our men are there, but I am unable to comment on the reason behind their presence,” one of the officials stated.

According to sources, the 52 companies were instructed by the anti-graft commission in a previous letter to submit documentation proving how their foreign exchange, which was sold to them at official prices for the previous ten years, was allocated and used.

Forms A and M, which listed the firms’ currency allocations from 2014 to June 2023, were requested by the EFCC.

However, a few businesses reportedly requested more time to obtain the necessary paperwork, even though several followed the instruction.

Economists claim that Nigeria’s use of several exchange rates up until June 2023 was a contributing factor in market instability, swings, and distortions in forex allocation.

The CBN’s monetary measures were believed to have been less effective due to the growing black market and inflationary pressures on the naira, which were attributed to the policy.

The employees and building visitors were taken aback by the EFCC detectives’ unexpected operation at the Dangote headquarters, which took place during regular business hours.
According to reports, the search started at around 3 p.m. and went on for a few hours.

Several financial records pertaining to currency allocations to the group from 2014 to June 2023, when President Bola Tinubu removed Emefiele from office, were taken by the operatives during the search, during which they destroyed offices.

It was not immediately possible to verify whether any officials of the corporation had been detained by the commission.

This newspaper had previously revealed that Jim Obazee, the Special Investigator on the CBN and Related Entities, had discovered how Emefiele had allegedly placed public funds in foreign currencies in as many as 593 bank accounts across China, the United States, and the United Kingdom without the board of directors of the apex bank and the CBN Investment Committee’s consent.

Probe CBN

Obazee discovered that the former governor of the Central Bank of Nigeria (CBN) had deposited £543, 482,213 in fixed deposits in UK banks without authorization. In addition, he was accused of manipulating the value of the naira and committing fraud in the e-Naira initiative.

In a report to the President dated December 20, 2023, the investigator suggested that Emefiele, who is currently facing prosecution for purported N1.2 billion in procurement fraud, be charged with additional offenses related to the way the CBN naira redesign policy was handled and the purportedly illicit issuing of currency under section 19 of the CBN Act.

Along with 12 other senior CBN directors and Tunde Sabiu, a former adviser and nephew of former President Muhammadu Buhari, he suggested that the former governor of the CBN be charged as well.

With a statement that called the information in Obazee’s investigation report “false, misleading, and calculated to disparage my person, injure my character, and serve the selfish interest of the private investigator,” Emefiele refuted the indictments.

According to a top EFCC official, Emefiele may have allocated preferred foreign exchange in violation of the CBN Act and current financial regulations, and the EFCC is looking into these claims.

“The EFCC is investigating the Dangote Group over the preferential foreign exchange allocations made by the former CBN Governor Godwin Emefiele in violation of the CBN Act and current financial rules and regulations,” the official asserted.

“The allocations were not approved by the former President Muhammadu Buhari, and the commission found that there are about 51 other large companies under investigation over the development. Therefore, it was more of a way for the former CBN governor and his allies to launder money through forex and Bureau De Change operators.”

The EFCC spokesman, Dele Oyewale, declined to comment when reached regarding the raid on the Dangote headquarters.

Calls and WhatsApp messages were not returned by Sunday Esan, the spokeswoman for Dangote Industries.

As of the time this report was filed, calls and messages were not returned to Anthony Chiejina or Francis Browne, two additional corporate representatives in the communications department.

Company accepts invitation

A Dangote representative, however, contended that the company had complied with the EFCC’s request and questioned the commission’s decision to make them look bad.

“We don’t know why they (EFCC officials) came to our office again; we were invited to the EFCC office earlier,” he said. Consequently, the Dangote representatives brought all the paperwork and turned it in. Why they ultimately chose to return to our office is unknown to us.

What did they come to take from our office after we accepted their invitation is the question we want to know. After all the documents they requested from us were delivered to them, they departed empty-handed. The media is being informed by the same EFCC that visited our office that they are looking into us.

Prior to the most recent event, Dangote Industries had denied claims in November 2023 that it was guilty of money laundering and forex malpractices totaling an astounding $3.4 billion that were purportedly made possible by Emefiele.

The conglomerate, a major force in the African economy and a pillar of Nigeria’s industrial landscape, refuted the allegations that money was siphoned off to its non-Nigerian businesses, resulting in money laundering and round-tripping.

The claim was allegedly made by a competing business organization.

In response, Dangote Industries cited prior CBN approvals from 2010 to 2018 that enabled it to buy $3.755 billion in foreign exchange to fund its projects in Africa, of which 46.70% were actually used.

The business emphasized that it obtained the foreign exchange needed for its investment projects from the interbank market, and that all of its transactions were backed by Letters of Credit that complied with global regulations.

The search of the anti-graft agency at the Dangote headquarters may have been a component of an evaluation of the previous administration, according to Musa Rafsanjani, Executive Director of the Civil Society Legislative and Advocacy Center, who also stated that the EFCC ought to be permitted to carry out its duties.

“In my opinion, let the EFCC finish its job. As everyone knows, our financial institutions are involved in a number of issues. Some likely got around the process by using their connections.

“There shouldn’t be any issues, in my opinion. Perhaps this is a standard investigation to assess how the previous government operated and if due process was adhered to or not.

The EFCC operation was taking place at the same time that Forbes Real-Time Billionaires revealed that South African billionaire Johann Rupert had eclipsed Aliko Dangote to become the wealthiest person in Africa.

According to Forbes Real-Time Billionaires, a database that tracks daily changes in the net worth of wealthy people worldwide, Dangote dropped to the second spot when his wealth decreased by $3.8 billion, from $13.5 billion in 2023 to $9.7 billion as of January 4, 2024.