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Forex Crisis: EFCC 7,000-Man Task Force Cracks Down Dollar Racketeers

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The Economic and Financial Crimes Commission (EFCC) has established a 7,000-man special task force across its 14 zonal commands to crack down on dollar racketeers in an effort to relieve pressure on the naira.

In a statement released on Wednesday in Abuja, the anti-graft agency’s spokesperson, Dele Oyewale, stated that the commission had called the owners of private colleges and other institutions that charge tuition in dollars.

Over the previous few weeks, the value of the naira has declined significantly in relation to the US dollar.

In the past weeks, the naira had plunged from about 900/dollar to over 1,400/dollar at the official market.

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, who appeared before the House of Representatives on Tuesday, disclosed  that Nigerians spent $98bn in 10 years on foreign education, healthcare and personal travels, which had impacted the naira.

He spoke against the backdrop of the central bank’s battle to stabilise the exchange rate amid dollar shortage.

Cardoso argued that the foreign exchange market was facing increased demand pressures, causing a continuous decline in the value of the naira.

According to him, factors contributing to this situation include speculative forex demand, inadequate forex due to low remittance of crude oil earnings to the CBN, increased capital outflows, and excess liquidity from fiscal activities.

To address exchange rate volatility, he said a comprehensive strategy had been initiated to enhance liquidity in the forex market.

This includes unifying FX market segments, clearing outstanding FX obligations, introducing new operational mechanisms for Bureau De Change operators, enforcing the Net Open Position limit for commercial banks, and adjusting the remunerable Standing Deposit Facility cap.

Cardoso revealed that between 200 and 2020, foreign education expenses amounted to a substantial $28.65bn, as per the CBN’S publicly available Balance of Payments Statistics.

Similarly, medical treatment abroad incurred around $11.01bn in costs during the same period. Within the same period, Personal Travel Allowances accounted for a total of $58.7bn.

Cumulatively, Nigerians spent about $98bn on foreign trips, medical tourism and overseas education, a figure the CBN governor said was more than the total foreign exchange reserves of the central bank.

Further compounding the situation, according to Cardoso, has been the consistent decline in Nigeria’s export earnings against the backdrop of increasing imports.

In contextualising the problem, Cardoso pointed out that Nigeria’s annual imports, which require dollars for payment, amounted to $16.65bn in 1980.

Worried by the development, the Finance Minister and Coordinating Minister for the Economy, Wale Edun, had last Friday met with the CBN Governor and the EFCC Chairman, Ola Olukoyede, to proffer solutions to the naira crisis.

The meeting, according to a statement signed by the Federal Ministry of Finance, was to strategise on stabilising the beleaguered currency.

“This afternoon at Finance HQ, HM Finance & Coordinating Minister for the Economy, Wale Edun, EFCC Chairman Ola Olukoyede and CBN Governor Olayemi Cardoso, engaged in a strategic discussion focused on enhancing the efficiency of our financial system and stabilising the naira,’’ the finance ministry posted on its X handle.

To strengthen the national currency and stabilise the nation’s volatile exchange rate, the CBN directed Deposit Money Banks to sell their excess dollar stock latest February 1, 2024.

The CBN, which made the disclosure in a new circular released last week Wednesday, also warned lenders against hoarding excess foreign currencies for profit.

According to officials, the central bank believes some commercial banks hold long-term foreign exchange positions to enable them to profit from the volatile movements of exchange rates.

The new circular introduces a set of guidelines aimed at reducing the risks associated with these practices.

In continuation of the targeted measures,   the EFCC revealed it had set up a special task force to enforce the extant laws against currency mutilation and dollarisation of the economy.

It explained that it arrested some perpetrators issuing invoices in dollars and mutilating the naira in Lagos and Rivers States.

  • Zonal Commands

Oyewale said, “The EFCC has raised a special task force in all its zonal commands for the enforcement of extant laws against currency mutilation and dollarization of the economy.

“The taskforce, inaugurated by the Executive Chairman of the commission, Ola Olukoyede, was raised to protect the economy from abuses, leakages and distortions exposing it to instability and disruption.

“Already, the commission has made some arrests of perpetrators of issuance of invoices in dollars and mutilation of the naira in Lagos and Port Harcourt.

“Also, proprietors of private universities and other institutions of higher learning charging fees in dollars have been invited by the Commission.

“The commission is committed to the enforcement of all laws in place for the reflation and stimulation of the economy.”

The CBN Act, 2007, stipulates that the currency notes issued by the CBN “shall be the legal tender for the payment of any amount in Nigeria.”

Furthermore, the Act stipulates that any person(s) who contravenes this provision is guilty of an offence and shall be liable on conviction to a prescribed fine or six months imprisonment.

Meanwhile, findings (according to The Punch) show the EFCC special task force is operating in all its 14 commands with over 7,000 operatives or  about 500 operatives in each command.

The zonal commands are Abuja, Benin, Enugu, Gombe, Ibadan, Ilorin, Kaduna, Kano, Lagos, Maiduguri, Makurdi, Port Harcourt, Sokoto and Uyo.

A source, who was not authorised to speak on the issue, revealed that all private universities and other tertiary institutions charging dollars and other foreign currencies in place of naira had been invited by the EFCC for a briefing, and sensitised on the fact that only the naira is a legal tender in Nigeria.

A second source, who declined to be named for confidential reasons,  said the school proprietors would not be arrested by the EFCC unless they continued to violate the law by accepting foreign currency.

He stated, “The Special Task Force is operating in all our 14 commands, and we have about 500 operatives in each command’s task force; that equals over 7,000 operatives overall.

“We invited, quizzed, and sensitised all the proprietors of all private universities and other tertiary institutions charging dollars and other foreign currencies in place of naira.

“The aim of the sensitisation was for them to know about extant laws making only naira and kobo legal tenders in Nigeria, as opposed to dollar, pounds, or other foreign currency.

“However, none of the proprietors would be steered or prosecuted for now, unless they go ahead to keep charging in dollars or other foreign currencies.”

  • Foreign Airlines

However, the President of the Association of Foreign Airlines and Representatives in Nigeria, Dr Kingsley Nwokoma, said there was no cause for alarm, adding that the EFCC’s action would not affect his members.

But he asked banks to repatriate the trapped funds from tickets sold in naira.

Meanwhile, reacting to the development, the Director-General of the Nigeria Employers’ Consultative Association, Mr. Wale Oyerinde, said, “From what we’ve heard as contained in the CBN Act, dollarisation is an economic offence, so they are on point. It is not whether it will salvage the economy or not. Salvaging the economy requires a multifaceted approach and efforts.

Also speaking, a facilitator with the Nigerian Economic Summit Group, Dr. Ikenna Nwaosu, said, “The answer first would be that a doctor heal yourself.  Many government agencies are still charging in foreign currency. If you look at the Nigerian Ports Authority, the Nigerian Maritime Administration and Safety Agency, most of their fees are in dollars for all their services. They issue invoices in dollars.  So when your own government agencies have not stopped why are you telling individuals not to charge in dollars. So I can’t say whether it would work or not because they government is not complaint. If you want to do uniform let it get to everywhere. I want to add that if you are saying that you are promoting investment in the country, you have to lead by example.”

Also, the President, Association of Bureau De Change, Aminu Gwadabe, said it was illegal for businesses or individuals in Nigeria to demand payment in forex.

He noted that allowing such would further weaken the embattled naira.

“It is illegal to ask for payment of whatever sort in foreign currency here in Nigeria. The CBN already issued a circular to this effect. Allowing institutions to receive payment in dollars will further cause more damage to the naira which is already depreciating,” he said.

Recently, some schools have reportedly requested for tuition fees in forex. An example of such is Wigwe University, a private university reportedly owned by Group Managing Director, Access Holdings Plc, Mr. Herbert Wigwe.

According to document published on its website (https://www.wigweuniversity.edu.ng/tuitionfess/) Wigwe University‘s 2024/2025 College of Arts students are expected to pay $12,000 annually as tuition fee; College of Engineering, $15,000; College of Management and Social Sciences, $15,000; and College of Science and Computing, $15,000.

 

Credit: The Punch

BIG STORY

Senate Warns Natasha Akpoti Against Planned Return To National Assembly, Says ‘It’s Premature’

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The senate has issued a warning to Natasha Akpoti-Uduaghan, representing Kogi central, advising her not to return to the national assembly until her suspension has been officially lifted.

On Saturday, Akpoti-Uduaghan declared her intention to resume legislative duties on Tuesday, stating that she had formally notified the senate in writing.

However, in a statement on Sunday, Yemi Adaramodu, who chairs the senate committee on media and public affairs, maintained that “no court order mandates the senate to reinstate the suspended lawmaker”.

Adaramodu emphasized the senate’s commitment to upholding due process and the principles of the rule of law.

According to the statement, “The senate of the Federal Republic of Nigeria wishes to reaffirm, for the third time, that there is no subsisting court order mandating the senate to recall Senator Natasha Akpoti-Uduaghan before the expiration of her suspension.”

It continued that the senate had already released two previous statements after the court’s ruling and the issuance of the certified true copy of the enrolled order, making it evident that there was no binding instruction compelling the senate to bring her back.

Instead, the court issued a suggestion encouraging the senate to consider adjusting its standing orders and reassessing the suspension, which it viewed as possibly excessive.

The court also ruled clearly that the senate did not violate any laws or constitutional provisions in imposing disciplinary measures due to the senator’s conduct during plenary.

The statement noted that the same court found Akpoti-Uduaghan guilty of contempt and imposed penalties, including a N5 million fine payable to the federal government and a directive to publish an apology in two national newspapers and on her Facebook page, which she allegedly has yet to do.

Adaramodu remarked that it was surprising and without legal basis for Akpoti-Uduaghan, while appealing and having filed a motion to delay the enforcement of those rulings, to act as if there is an existing recall order.

He cautioned that any move by her to return to the senate on Tuesday under a false assumption would be premature, disruptive, and violate legislative protocols.

He added that the senate would, when appropriate, review the court’s advice on amending its standing rules and addressing her recall, and communicate the outcome to her.

Until that time, she has been advised to remain away from the senate chambers and allow legal procedures to be completed.

On March 6, the senate suspended Akpoti-Uduaghan for six months for allegedly breaching its standing rules.

The suspension followed her accusation of sexual harassment against Senate President Godswill Akpabio, which she later pursued in court.

In July, the federal high court in Abuja ruled that the lawmaker should be reinstated, saying the length and manner of her suspension were too severe.

Nonetheless, the senate said it has not yet received the certified true copy of the judgment and would not take action without it.

Akpabio has filed an appeal to contest the court’s ruling.

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Enugu Electricity Regulator Slashes Band A Tariff From N209 To N160/kWh

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The Enugu State Electricity Regulatory Commission has approved a reduced tariff for MainPower Electricity Distribution Limited, which replaced the Enugu Electricity Distribution Company. The Band A electricity tariff has been decreased from N209 per kilowatt-hour to N160 per kilowatt-hour.

The commission issued the directive over the weekend through a document labeled EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025.”

In a statement on Sunday, the regulator said the new rate, starting August 1, is based on actual costs and incorporates the federal government’s subsidy on electricity generation, which benefits consumers.

The commission stated that the decision aligns with the Enugu State Electricity Law 2023, which grants it the authority to oversee electricity generation, transmission, and distribution within the state.

“This law, signed by Governor Peter Mbah of Enugu state in September 2023, is pursuant to the 2023 Constitutional Amendment, which firmly established the legislative authority of the states on electricity matters within their states,” the statement reads.

“This was followed by the passage of the Electricity Act 2023, that repealed the Electric Power Sector Reform Act, 2005, and introduced major changes such as the separation of distribution and supply operations, and empowers states to regulate their own electricity markets.”

EERC TO MONITOR MAINPOWER TO ENSURE COMPLIANCE WITH NEW TARIFF

The regulator noted that it has set up monitoring and evaluation mechanisms as well as service standards to ensure that MainPower fulfills its service obligations and does not overcharge consumers for inadequate supply.

“MainPower is obliged to publish daily on its website a rolling seven-day average daily hours of supply on each Bank A feeder no later than 9am of the next day,” the commission said.

“Where MainPower fails to deliver on the committed level of service on Band A feeder for two consecutive days, MainPower shall report this to the Commission within 24 hours.”

The commission added that any Band A feeder that fails to meet the required service levels for seven straight days will be downgraded to reflect actual supply levels.

It stated its commitment to collaborating with “industry developers, investors, customers and Stakeholders to develop and implement strategies and solutions to provide access and improve electricity services to all the citizens of the state, as this is a win for the establishment”.

Chijioke Okonkwo, chairman of the EERC, said the tariff reduction followed a thorough review of MainPower’s license and pricing submissions, as it is a newly certified subnational operator in Enugu state.

“We reviewed their entire costs, using our Tariff Methodology Regulations 2024, and the supporting Distribution Tariff Model to get an average price of N94,” he said.

“The price is low because the Federal Government has been subsidising electricity generation cost which charges only N45 out of the actual cost of N112. That was how we came about the average tariff of N94 as cost reflective tariff at our level as a subnational electricity market.

“The actual PPA cost of any power purchase made by Mainpower out side the one subsidized by Federal Government, through the Nigerian Bulk Electricity Trader (NBET) will trigger automatic tariff adjustment to accommodate the PPA price because it will not be subsidized by the Federal Government.

“Breaking this across the various tariff bands means that Band A will be paying N160 while other Bands B, C, D, and E are frozen.

“Band A, at N160 will help MainPower to manage the rate shock, and if the subsidy is removed, the savings will assist them in stabilising the tariff over a defined period of time.”

According to Okonkwo, the tariff will always reflect actual costs and will not require any financial assistance from the state government.

He also stated that if the federal government stops subsidizing generation costs, the Band A tariff of N160 could become unsustainable, and prices might exceed the current rate.

Until that happens, he said it is appropriate that “Ndi Enugu – Band A customers” benefit from the lower tariff starting August 1.

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BIG STORY

NASS Showdown: Senate Draws Battle Lines Over Natasha’s Return

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The Senate has cautioned suspended Senator Natasha Akpoti-Uduaghan, who represents Kogi Central, against attempting to resume her legislative role on Tuesday by force.

Yemi Adaramodu, the Chairman of the Senate Committee on Media and Public Affairs, issued the caution in a statement released on Sunday.

Adaramodu emphasized that there is no legal directive currently requiring the Senate to reinstate Akpoti-Uduaghan immediately and reaffirmed the Senate’s commitment to legal procedures and the rule of law.

He stated, “The Senate of the Federal Republic of Nigeria wishes to reaffirm, for the third time, that there is no subsisting court order mandating the Senate to recall Senator Natasha Akpoti-Uduaghan before the expiration of her suspension.”

This clarification came in response to reports quoting Akpoti-Uduaghan as claiming she would return to the Senate based on a judgment by Justice Binta Nyako of the Federal High Court in Abuja.

Adaramodu explained that after the court decision and the issuance of the Certified True Copy of the enrolled order, the Senate had already clarified twice that the court did not issue any binding or compulsory instruction for her reinstatement.

He added, “Rather, the honourable court gave a non-binding advisory urging the Senate to consider amending its standing orders and reviewing the suspension, which it opined might be excessive.”

He further explained that the court had clearly ruled that the Senate had not violated any law or constitutional provision in suspending the senator for her conduct during plenary.

The Senate also pointed out that the same court found Akpoti-Uduaghan in contempt and penalized her with a fine of N5 million to be paid to the federal government, along with an instruction to issue public apologies in two national newspapers and on her Facebook page — a ruling she has reportedly not yet followed.

The Senate spokesperson added, “It is, therefore, surprising and legally untenable that Senator Akpoti-Uduaghan, while on appeal and having filed a motion for stay against the valid and binding orders made against her, is attempting to act upon an imaginary order of recall that does not exist.”

He cautioned that any attempt by Akpoti-Uduaghan to force her way back into the Senate next Tuesday under a false premise would be inappropriate, disruptive, and contrary to legislative protocol.

He added, “The Senate will, at the appropriate time, consider the advisory opinion of the court on both amending the standing orders of the Senate, her recall, and communicate the same thereof to Senator Akpoti-Uduaghan.”

“Until then, she is respectfully advised to stay away from the Senate chambers and allow due process to run its full course,” the statement concluded.

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