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 made available to us reveal the arbitrary fixing of different
exchange rates for transactions.
One of the documents made available to LeadersNG, the “BANK UTILIZATION
REPORT ON 60:40 RULE FOR OCTOBER 2016”, shows stark contrasts in the
exchange rates applied in the allocation of forex to different companies
and individuals. The document shows no applicable pattern or matrix used
in calculating exchange rates or selecting the companies or individuals
who got low or high rates.
Details of this report show that during the month of October 2016 some
companies were allocated forex at exchange rates as low as N0.61 to $1 in
one particular transaction while others received forex at exchange rates
as high as N470 to $1. The report also reveals the allocation of forex to
individuals and companies for reasons varying from importation of a
variety of products to family maintenance allowances, mortgage payments,
medical travel and school fees/other bills associated with educational
Our source is adamant that many powerful forces within the CBN and
Nigerian political circles are taking advantage of CBN’s policies to make
huge profits by taking advantage of CBN’s policies to make huge profits by
purchasing forex from CBN at low prices then selling at black market rates
in the black market.CBN’s policies have currently led to a disparity
between the official exchange rate and the parallel market rates of almost
N200 per $1 .
In October 2016, CGC Nigeria Limited whose address is listed as Kubwa
Road, Abuja received an allocation of $81,392.59 at an exchange rate of
N47.50/$1 to import floor drains. In a stark contrast, in one of its
several transactions, Lafarge Africa Plc of paid an exchange rate of
N428/$1 to get $987,214.18.
On its part, two particular transactions of the Nigerian Breweries Plc
stood out. In these two transactions conducted through Rand Bank of South
Africa, NB Plc was able to purchase $3193 and $1272 for the purchase of
“Raw Materials Hi Cone” at N1.20/$1.
The document also revealed that MACADAMS Baking Systems Limited purchased
$57,365.02 for the purchase of baking ingredients at N23/$1. Our
investigation into the management structure of the Company revealed that
the Chairman of the Board of Directors of MACADAMS Baking Systems Limited
is Chief Adegboyega Awomolo (SAN). Chief Awomolo is also currently counsel
to Independent National Electoral Commission, INEC.
The disparity in exchange rate also applied to individuals. For instance,
Adebolanle Badejo purchased $4,372.05 at N23.34/$1 to service credit card
payments. Farida Hassan Gimba received purchased $14,621 at an exchange
rate of $48/$1 for educational expenses starkly contrasting with the rate
of N370/$1 Fatai Odesile paid for the same purpose.
Abas Alhassan was able to purchase $805.73 at N85.24/$1 to make mortgage
payments. In stark contrast, Akintunde Rowland Babatunde purchased
$1,972.60 at an exchange rate of N404.84 for the same purposes. In another
example, while Jigba Zahradeen Saleh and Nnogo Jane were able to purhcase
$ 4,278.65 at N87.52 and $365.68 at N23.04/$1 respectively to pay for
educational expenses, Isioma Asiodu Otughwor had to purchase $4,794.41 at
N405.22 for the same purpose.
In similar transactions Kennedy Onyeali, Managing Director of All Seasons
Mediacom purchased $9,752 at N30/$1 for the importation of an item simply
referred to as HF101, while Alhaji Babagana Mohammed Sheriff, who we
believe is a nephew to factional chairman of the Peoples’ Democratic Party
(PDP) – Senator Ali Modu Sheriff and an in-law of President Muhammadu
Buhari, was permitted to purchase $ $35,338.69 at the rate of N101.5/$1
for the importation of an item listed as “invisible”.
Foreigners were also able to benefit from the purchase of forex at low
exchange rates. A person simply named as Paula was able to purchase
$834.15 at N23.35/$1, while Paula Coetzee was able to purchase $1,563.06
at N23.11/$1. Both transactions were conducted through Stanbic IBTC Bank
Plc and were for family maintenance allowances for expatriates.
Similarly William Le Roux and Debra Ann Le Roux were permitted to purchase
$13,093.29 and $9,378.37 at N22.63 and N23.11 respectively. Both
transactions were conducted through local banks and were for
family maintenance allowances for expatriates.
In stark contrast to all this, World Wide Commercial Venture Limited was
permitted to purchase $1, 462,480.83 at the rate of N425/$1 to purchase
life saving drugs and pharmaceutical products. Its 24 transactions in
October 2016 were conducted through Zenith Bank.
The lack of a pattern or formula used to calculate the exchange rate used
for allocations lends credence to allegations of racketeering and dubious
allocations of Forex to close family and friends on the part of CBN
CBN has recently come under flak from many quarters for its foreign
exchange policies. Last August, former CBN governor and the Emir of Kano,
HRM Sanusi Lamido Sanusi, condemned sharp practices in the allocation and
forex which he said was capable of distorting the market and damaging the
economy. He was particularly critical of CBN’s policies which he said were
creating emergency billionaires.
On January 13th, 2016 a civil society group carried out a peaceful
procession to the CBN headquarters in Abuja to protest the negative
effects of its foreign exchange policies, the rising price of essential
goods and services owing to exchange rates and alleged corruption in the
implementation of the apex bank’s policies.
One of the organisers of the protest, Mr. Deji Adeyanju, alleged currency
speculation amongst the top echelon of the apex bank. Mr. Adeyanju alleged
that many senior officials use various fronts to apply for and obtain
forex which they then sell on the black market at higher rates.
A few days ago, while speaking to journalists at the 2017 World Economic
Forum in Davos, Switzerland Vice President Yemi Osinbajo alluded to the
negative consequences of the disparity between the official exchange rate
and the parallel market rate.
Below are links to download the original 60:40 report leaked to LeadersNG
and a summary of the most fraudulent forex transactions that took place in
the month of october 2016.