Currency depreciation: EFCC moves against Foreign missions in Nigeria

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May 10, 2024

EFCC

…Says it’s illegal to demand Dollar for goods and services

Soni Daniel, Abuja

As the Nigerian currency continues to tumble, the Economic and Financial Crimes Commission has warned foreign missions not to demand foreign currency for goods and services in the country.

The chairman of EFCC, Ola Olukoyede, gave the strong warning in a special memo addressed to the Minister of Foreign Affairs, which was sighted by Saturday Vanguard.

In the memo dated May 5, 2024, the EFCC chair made it clear that it was illegal for any foreign mission to collect any currency apart from Naira in Nigeria.

Part of the memo reads: “I present to you the compliments of the Economic and Financial Crimes Commission, EFCC, and wish to notify you about the Commission’s observation, with dismay, regarding the unhealthy practice by some foreign Missions to invoice consular services to Nigerians and other foreign nationals in the country in United States Dollar.

“This practice is an aberration and unlawful as it conflicts with extant laws and financial regulations in Nigeria. Section 20(1) of the Central Bank of Nigeria Act, 2007 makes currencies issued by the apex bank the only legal tender in Nigeria.

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“It states that “the currency notes issued by the Bank shall be the legal tender in Nigeria on their face value for the payment of any amount”. This presupposes that any transaction in currencies other than the naira anywhere in Nigeria contravenes the law and is therefore, illegal.

“The refusal by some Missions to accept the naira for consular service in Nigeria and also comply with foreign exchange regulatory regime in fixing the exchange of the cost of their services is not only illegal, but represents an affront on the Country’s sovereignty symbolized by the national currency. It undermines Nigeria’s monetary policy and aspiration for sustainable economic development.

“This trend can no longer be tolerated, especially in a volatile economic environment where the country’s macroeconomic policies are constantly under attack by all manner of state and non-state actors.

“In light of the above, you may wish to convey the Commission’s displeasure to all Missions in Nigeria and restate Nigeria’s desire for their operations not to conflict with extant laws and regulations in the country,” the EFCC boss warned