NSA, EFCC To Collaborate With CBN To Curb Forex Crisis Amidst Economic Hardship

In a move aimed at tackling the rampant forex speculation plaguing Nigeria’s economy, the National Security Adviser’s Office (NSAO), under the leadership of Nuhu Ribadu, has joined hands with the Central Bank of Nigeria (CBN) to initiate a collaborative effort.

Zakari Mijinyawa, a spokesperson for Ribadu’s office, highlighted the urgency of the situation, stating, “Recent intelligence reports have highlighted continued illicit activities within the Nigerian foreign exchange market.” He emphasized that the partnership with the CBN signals the government’s determination to combat these infractions.

Mijinyawa outlined the key objectives of this alliance, which include systematically identifying, thoroughly investigating, and appropriately penalizing individuals and organizations engaged in wrongful activities within the forex market.

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He stressed the importance of leveraging the expertise of law enforcement agencies such as the Nigeria Police Force, the Economic and Financial Crimes Commission, the Nigeria Customs Service, and the Nigeria Financial Intelligence Unit to achieve these goals.

The move comes as the Naira has faced significant depreciation against the Dollar, reaching historic lows of over N1,500/$1. The unification of forex windows by the Tinubu-led government exacerbated this decline, leading to widespread economic instability.

Governor Yemi Cardoso of the CBN attributed much of the forex challenges to the substantial amounts spent on foreign education and medical tourism, which amounted to around $40 billion. This spending contributed to the Naira’s depreciation in the official market, prompting the CBN to implement measures to protect its value.

One such measure is the revision of operations for International Money Transfer Operators (IMTOs), restricting them to inbound transfers and mandating payouts in Naira. This policy, impacting major IMTOs like Western Union and MoneyGram, forms part of broader efforts to stabilize the foreign exchange market.

The collaborative efforts between the NSAO and the CBN underscore the government’s commitment to addressing the root causes of economic instability and restoring investor confidence. By targeting forex speculation and illicit activities, the partnership aims to promote sustainable economic growth and safeguard Nigeria’s financial future.