EFCC Nabs 200 BDC Operators in Forex Fraud Sweep

The Economic and Financial Crimes Commission (EFCC) has arrested more than 200 suspects across Nigeria in connection with foreign exchange scams and financial market manipulation.

These arrests are part of a nationwide effort to curb illicit activities affecting the local currency, the naira.

The suspects, predominantly Bureau De Change (BDC) operators, were apprehended in various states, including Abuja, Lagos, Rivers, and Kano. A source within the EFCC revealed that these arrests were part of an intensified clampdown on forex scammers and market manipulators.

Specific Cases and Recovered Items

Uyo Zonal Command Arrests:
On May 17, 2023, the Uyo Zonal command of the EFCC arrested five suspected forex speculators at the Ama-Hausa mosque in Aba, Abia State. The suspects were caught with various foreign currencies and items including:
– Currencies: 23,000 Korean Won, 52 Chinese Yuan, $6,500 Nippon Ginko, 40 notes of Dalawampung Piso (Philippines currency), 20 Gambian Dalasis, 20 Swaziland currency, and N382,000.
– Other Items: Seven mobile phones, one power bank, one air pod, and one ATM card.

Enugu Zonal Command Case
The EFCC arraigned Daniel Chukwuka Koussou, a forex broker, before the Enugu State High Court for criminal conversion and stealing N112.8 million. Koussou allegedly received $276,000 to convert into naira but only returned part of the money, diverting the rest for personal use. He has been remanded pending the fulfilment of bail conditions.

The arrests are part of the Federal Government’s strategy to stabilize the naira by targeting forex speculators. These speculators are blamed for the significant depreciation of the naira. The government’s actions include:
– Raids on BDC operators in major cities.
– Surveillance and intelligence gathering on forex activities.
– Legal proceedings against those involved in currency manipulation.

The naira saw a slight appreciation following these arrests. At the official market, the naira traded at 1,462/$ compared to 1,465/$ the previous day. The parallel market saw the naira exchange at 1,470/$, gaining N10 from the previous trading day.

The EFCC continues to interrogate the suspects to determine their involvement levels. Market traders have noted a slowdown in trading activities, likely due to recent monetary policy committee meetings by the Central Bank of Nigeria (CBN).

Consumers and industry stakeholders have expressed mixed reactions:
– Consumers: There is a call for improved transparency and accountability from financial institutions and regulatory bodies.
– Regulatory Bodies: The CBN and EFCC are urged to maintain stringent measures to ensure market stability and protect the naira from further devaluation.

The EFCC’s crackdown is a significant step towards curbing financial crimes and stabilizing Nigeria’s forex market, although the full impact on market dynamics and the broader economy remains to be seen.