Emmanuel OchayiThe Economic and Financial Crimes Commission (EFCC) has taken decisive action against currency mutilation and the pervasive dollarization trend.
With a newly established task force across its zonal commands, the EFCC aims to stem the tide of abuses and distortions that threaten economic stability.
Executive Chairman of the Commission, Ola Olukoyede, underscored the urgency of the situation, stating, “The Task Force, 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.”
Recent arrests of individuals involved in issuing invoices in dollars and mutilating the Naira in key economic hubs like Lagos and Port Harcourt mark the beginning of a concerted effort to enforce existing laws.
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The EFCC’s actions extend beyond mere rhetoric, as it also extends invitations to proprietors of private universities and other institutions charging fees in dollars, signaling a comprehensive approach to tackle the root causes of currency destabilization.
Amidst the backdrop of a depreciating Naira, exacerbated by foreign exchange market illiquidity and a surge in dollar-denominated transactions, the EFCC’s intervention is timely. The Naira’s value plummeted by over 100% since the introduction of the FX unification policy in June 2023, reflecting a crisis of confidence in the domestic currency.
Yemi Cardoso, the Governor of the Central Bank of Nigeria, has identified foreign trips and medical tourism as significant contributors to the strain on the country’s foreign exchange reserves, amounting to approximately $98 million over a decade. C
ardoso remains optimistic, asserting that restoring confidence in the FX market will pave the way for the Naira’s resurgence against the dollar.
As Nigeria grapples with economic challenges, the EFCC’s proactive stance sends a clear message: currency manipulation and dollarization will not be tolerated, and decisive action will be taken to protect the nation’s economic interests.
