If the investigation carried out by The Punch is anything to go by, several Nigerian commercial banks are culpable for exacerbating the current acute shortage of foreign currency in the country.
Due to the Central Bank of Nigeria (CBN)’s rationing of forex, many prospective importers have become desperate in need of forex to import products ranging from raw materials to equipment. As a result, they approach the banks who have capitalized on the situation to sell several millions of dollars obtained from the CBN on their clients’ names at huge premiums above the N199 to $1 official rate approved by the apex bank.
Note that the CBN has been rationing forex to prospective importers in the past 16 months, after the global fall in the prices of crude oil, the nation’s main forex earner. Since then, tens of thousands of applications for forex by intending importers have been kept on hold by the CBN for months.
The Punch reported that out of about $10m to $25m (depending on the volume of demand by its customers) sold by the CBN to commercial banks in some weeks, illegal profit to the tune of $5m could be made by each of the banks involved in the forex racketeering.
One of the victims of the ongoing racket lamented on the condition of anonymity, for fear of being victimised by the bank:
“We need $295,000 to import some equipment. We have been on the so-called CBN queue since October. The bank said no forex. Recently, the bank called us that there was forex but not at the official rate. They wanted to sell to us at N275 to $1. Out of about N81m we are to pay, only about N59m goes to the CBN, which is the official rate. The balance goes to the bank officials who get this allocation from the CBN. This is the type of stupid money they make now, God saves Nigeria.”
The visibly angry importer explained further:
“The bank’s officials said they had $5m as of January 29. So calculate how much they made for that week alone.”
The forex racketeering victim said the bank officials had told him that the difference between the CBN rate of N199/$1 and the N275 to the dollar rate they were offering him would be paid through a cheque written on a name to be provided by the officials.
He added, “The bank will debit my account at the CBN rate and then I will give them a cheque for the balance.”
The post above and its ensuing comments, if any, is purely the opinion of the writer(s). It therefore should never be considered as an investment advise of any sort. If required, readers should please consult a competent professional financial adviser for any investment decision.