The Economic and Financial Crimes Commission revealed that some foreign missions in Nigeria were using third parties to transact in foreign currencies, which is illegal under Nigerian law.
The EFCC spokesperson, Wilson Uwujaren, disclosed this information during an interview on The Morning Show on Arise Television.
The commission observed that foreign missions engaged third parties to carry out consular services on their behalf, and these third parties invoiced in dollars. Some even determined the exchange rate of the naira during transactions with Nigerians and foreign nationals in Nigeria.
The EFCC sent an advisory letter to the Minister of Foreign Affairs, Yusuf Tuggar, titled “EFCC Advisory to Foreign Missions against Invoicing in US Dollars,” warning against transacting in foreign currencies and mandating the use of the naira.
It is important to note that the EFCC does not have the authority to ban or direct foreign missions on their financial practices. The commission clarified that it is illegal for foreign missions to transact in foreign currencies within Nigeria, prompting the advisory on using the naira.
The EFCC did not directly contact any foreign missions but informed the Ministry of Foreign Affairs, which is responsible for communicating with foreign missions.
Uwujaren clarified that the EFCC did not directly contact any foreign missions but, instead, informed the Ministry of Foreign Affairs, which is responsible for communicating with foreign missions.
He stated, “The advisory that we issued was to the Ministry of Foreign Affairs, and what we did was essentially to bring attention to this practice, which we believe conflicts with Section 20, Subsection 1 of the Central Bank of Nigeria Act.
“That section of the recipient Act actually makes the naira the only legal tender in Nigeria, which presupposes that it is the only acceptable currency for doing business within the borders of our country.”
When asked whether the Ministry of Foreign Affairs had responded to the EFCC advisory, Uwujaren explained that the ministry had established protocols for engaging with foreign missions in Nigeria.
He noted that it was within the ministry’s competence to determine how best to communicate the information to the various foreign missions.
“Essentially, our focus is to discourage the dollarisation of transactions within the local Nigerian economy,” he added.
The spokesperson further stated that the EFCC had also put enforcement measures in place to prevent the abuse of the naira and discourage illegal forex practices.
A special task force, he said, was established to address the naira abuse and forex malpractices across the country.