The Central Bank of Nigeria (CBN) has been implementing a questionable,
\nand possibly corrupt policy in its allocation and sale of foreign currency
\nto Nigerians, LeadersNG can exclusively reveal.<\/p>\n
Documents made available to us reveal the arbitrary fixing of different
\nexchange rates for transactions.<\/p>\n
One of the documents made available to LeadersNG, the \u201cBANK UTILIZATION
\nREPORT ON 60:40 RULE FOR OCTOBER 2016\u201d, shows stark contrasts in the
\nexchange rates applied in the allocation of forex to different companies
\nand individuals. The document shows no applicable pattern or matrix used
\nin calculating exchange rates or selecting the companies or individuals
\nwho got low or high rates.<\/p>\n
Details of this report show that during the month of October 2016 some
\ncompanies were allocated forex at exchange rates as low as N0.61 to $1 in
\none particular transaction while others received forex at exchange rates
\nas high as N470 to $1. The report also reveals the allocation of forex to
\nindividuals and companies for reasons varying from importation of a
\nvariety of products to family maintenance allowances, mortgage payments,
\nmedical travel and school fees\/other bills associated with educational
\nexpenditure.<\/p>\n
Our source is adamant that many powerful forces within the CBN and
\nNigerian political circles are taking advantage of CBN\u2019s policies to make
\nhuge profits by taking advantage of CBN\u2019s policies to make huge profits by
\npurchasing forex from CBN at low prices then selling at black market rates
\nin the black market.CBN\u2019s policies have currently led to a disparity
\nbetween the official exchange rate and the parallel market rates of almost
\nN200 per $1 .<\/p>\n
In October 2016, CGC Nigeria Limited whose address is listed as Kubwa
\nRoad, Abuja received an allocation of $81,392.59 at an exchange rate of
\nN47.50\/$1 to import floor drains. In a stark contrast, in one of its
\nseveral transactions, Lafarge Africa Plc of paid an exchange rate of
\nN428\/$1 to get $987,214.18.<\/p>\n
On its part, two particular transactions of the Nigerian Breweries Plc
\nstood out. In these two transactions conducted through Rand Bank of South
\nAfrica, NB Plc was able to purchase $3193 and $1272 for the purchase of
\n\u201cRaw Materials Hi Cone\u201d at N1.20\/$1.<\/p>\n
The document also revealed that MACADAMS Baking Systems Limited purchased
\n$57,365.02 for the purchase of baking ingredients at N23\/$1. Our
\ninvestigation into the management structure of the Company revealed that
\nthe Chairman of the Board of Directors of MACADAMS Baking Systems Limited
\nis Chief Adegboyega Awomolo (SAN). Chief Awomolo is also currently counsel
\nto Independent National Electoral Commission, INEC.<\/p>\n
The disparity in exchange rate also applied to individuals. For instance,
\nAdebolanle Badejo purchased $4,372.05 at N23.34\/$1 to service credit card
\npayments. Farida Hassan Gimba received purchased $14,621 at an exchange
\nrate of $48\/$1 for educational expenses starkly contrasting with the rate
\nof N370\/$1 Fatai Odesile paid for the same purpose.
\nAbas Alhassan was able to purchase $805.73 at N85.24\/$1 to make mortgage
\npayments. In stark contrast, Akintunde Rowland Babatunde purchased
\n$1,972.60 at an exchange rate of N404.84 for the same purposes. In another
\nexample, while Jigba Zahradeen Saleh and Nnogo Jane were able to purhcase
\n$ 4,278.65 at N87.52 and $365.68 at N23.04\/$1 respectively to pay for
\neducational expenses, Isioma Asiodu Otughwor had to purchase $4,794.41 at
\nN405.22 for the same purpose.<\/p>\n
In similar transactions Kennedy Onyeali, Managing Director of All Seasons
\nMediacom purchased $9,752 at N30\/$1 for the importation of an item simply
\nreferred to as HF101, while Alhaji Babagana Mohammed Sheriff, who we
\nbelieve is a nephew to factional chairman of the Peoples\u2019 Democratic Party
\n(PDP) \u2013 Senator Ali Modu Sheriff and an in-law of President Muhammadu
\nBuhari, was permitted to purchase $ $35,338.69 at the rate of N101.5\/$1
\nfor the importation of an item listed as \u201cinvisible\u201d.<\/p>\n
Foreigners were also able to benefit from the purchase of forex at low
\nexchange rates. A person simply named as Paula was able to purchase
\n$834.15 at N23.35\/$1, while Paula Coetzee was able to purchase $1,563.06
\nat N23.11\/$1. Both transactions were conducted through Stanbic IBTC Bank
\nPlc and were for family maintenance allowances for expatriates.<\/p>\n
Similarly William Le Roux and Debra Ann Le Roux were permitted to purchase
\n$13,093.29 and $9,378.37 at N22.63 and N23.11 respectively. Both
\ntransactions were conducted through Stanbic IBTC Bank Plc and were for
\nfamily maintenance allowances for expatriates.<\/p>\n
In stark contrast to all this, World Wide Commercial Venture Limited was
\npermitted to purchase $1, 462,480.83 at the rate of N425\/$1 to purchase
\nlife saving drugs and pharmaceutical products. Its 24 transactions in
\nOctober 2016 were conducted through Zenith Bank.<\/p>\n
The lack of a pattern or formula used to calculate the exchange rate used
\nfor allocations lends credence to allegations of racketeering and dubious
\nallocations of Forex to close family and friends on the part of CBN
\nofficials.<\/p>\n
CBN has recently come under flak from many quarters for its foreign
\nexchange policies. Last August, former CBN governor and the Emir of Kano,
\nHRM Sanusi Lamido Sanusi, condemned sharp practices in the allocation and
\nforex which he said was capable of distorting the market and damaging the
\neconomy. He was particularly critical of CBN\u2019s policies which he said were
\ncreating emergency billionaires.<\/p>\n
On January 13th, 2016 a civil society group carried out a peaceful
\nprocession to the CBN headquarters in Abuja to protest the negative
\neffects of its foreign exchange policies, the rising price of essential
\ngoods and services owing to exchange rates and alleged corruption in the
\nimplementation of the apex bank\u2019s policies.<\/p>\n
One of the organisers of the protest, Mr. Deji Adeyanju, alleged currency
\nspeculation amongst the top echelon of the apex bank. Mr. Adeyanju alleged
\nthat many senior officials use various fronts to apply for and obtain
\nforex which they then sell on the black market at higher rates.<\/p>\n
A few days ago, while speaking to journalists at the 2017 World Economic
\nForum in Davos, Switzerland Vice President Yemi Osinbajo alluded to the
\nnegative consequences of the disparity between the official exchange rate
\nand the parallel market rate.<\/p>\n
Below are links to download the original 60:40 report leaked to LEADERSNG
\nand a summary of the most fraudulent forex transactions that took place in
\nthe month of october 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Central Bank of Nigeria (CBN) has been implementing a questionable, and possibly corrupt policy in its allocation and sale of foreign currency to Nigerians, LeadersNG can exclusively reveal. Documents…<\/p>\n","protected":false},"author":1,"featured_media":47656,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-55758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-exclusive"],"yoast_head":"\n