Nigeria’s Economic and Financial Crimes Commission (EFCC) has taken a significant step in its crackdown on forex racketeers, securing an interim order to freeze 1,146 bank accounts linked to alleged money laundering, unauthorized dealing in foreign exchange, and illegal naira manipulation. The accounts, belonging to individuals and companies, are subject to investigation by the EFCC, which has been working to curb the free fall of the naira against dollars and other foreign currencies.
The EFCC’s efforts are part of a broader strategy to stabilize the foreign exchange market and protect the economy. The agency has been working closely with the Central Bank of Nigeria (CBN) and other stakeholders to address the challenges facing the market, including speculative forex demand, inadequate forex due to low remittance of crude oil earnings, increased capital outflows, and excess liquidity from fiscal activities.
The EFCC’s investigation is focused on individuals and companies that have been using virtual cryptocurrency exchange platforms to illegally manipulate the value of the naira and launder proceeds of unlawful activities. The agency has uncovered users who have been using these platforms for price discovery, confirmation, and market manipulation, which has caused tremendous distortions in the market, resulting in the naira losing its value against other currencies.
The EFCC’s action is seen as a major step in the fight against forex racketeering and money laundering in Nigeria. The agency has been working to disrupt the activities of illegal currency traders and speculators, who have been taking advantage of the situation to artificially inflate prices. The EFCC’s efforts have led to the arrest of over 100 currency traders in Lagos and the detention of two senior executives of Binance, a crypto-currency exchange company.
The EFCC’s investigation is ongoing, and the agency has been granted an order to conclude the investigation within 90 days. The agency’s actions are seen as a major step in the fight against corruption and economic sabotage in Nigeria, and are expected to have a significant impact on the country’s foreign exchange market and economy.