EFCC Arrests Over 200 in Nigeria's Forex Scam Crackdown

The Economic and Financial Crimes Commission (EFCC), Nigeria's premier law enforcement agency addressing financial crimes such as advance fee fraud and money laundering, has detained over 200 suspects connected to foreign exchange scams and market manipulation.

Reports indicate that over 200 suspected Bureau De Change (BDC) operators are currently in EFCC custody across the country. It was allegedly reported that these suspects were apprehended for their involvement in forex scams and currency speculation. The arrests were made in various states, not limited to Abuja or the EFCC headquarters.

EFCC officials confirmed that the detained individuals are being interrogated to determine their levels of involvement in the alleged crimes. The majority of arrests took place in Abuja, Lagos, Rivers, and Kano States. The EFCC is confident that the crackdown on forex scammers will yield positive outcomes, with the arrested individuals facing legal consequences for their actions.

Last week, the EFCC expanded its efforts against BDC operators, leading to the arrest of traders in Lagos, Kano, and Port Harcourt. This initiative is part of the Federal Government‘s strategy to stabilize the local currency’s value. The government attributes the nairas significant depreciation to speculators' activities in the forex market and digital marketing sectors.

On Friday, May 17, operatives from the EFCC's Uyo Zonal Command arrested five suspected forex speculators at the Ama-Hausa mosque on Hospital Road, Aba, in Abia State. The suspects—Hassan Umaru, Haruna Umar, Badamasi Abdullahi, Auwal Muhammed, and Kasimu Muhammed—were found with various currencies at the time of their arrest. Recovered currencies included 23,000 Won (Korean currency), 52 Yuan (Chinese currency), $6,500 Nippon Ginko, 40 notes of Dalawampung Piso (Philippines currency), 20 Gambian Dalasis, 20 Swaziland currency, and N382,000. Additionally, seven mobile phones, one power bank, one air pod, and one ATM card were confiscated. The suspects were apprehended following weeks of surveillance and credible intelligence. They will face charges in court once investigations are completed.

In a related development, the Enugu Zonal Command of the EFCC arraigned Daniel Chukwuka Koussou, a forex broker, before Justice C. O. Ajah of the State High Court in Independence Layout, Enugu State. Koussou was charged with criminal conversion and stealing of N112.8 million. The charge states that in July 2022, Koussou committed felony by fraudulently converting N112,800,800, property of Chinedu Igbokwe, to his use, thus committing an offence under Section 342 of the Criminal Code Law, Cap 30 of the Laws of Enugu State and punishable under Section 353 (1) of the same law. Koussou pleaded not guilty and was remanded at the Enugu State Correctional Facility pending bail.

The EFCC revealed that Koussous arrest followed a petition claiming he received $276,000 from the petitioner to convert into naira and return. On July 6, 2022, Providus Bank transferred the full amount in naira to Koussou, who then sent only part-payment of N21,759,771 to the petitioner and diverted the rest for personal use. Efforts to recover the remaining funds were unsuccessful.

Two weeks ago, additional BDC operators were arrested in Abuja for allegedly aiding currency speculators. Currency operators confirmed that these sting operations took place at various times in Lagos, Kano, and Port Harcourt.

Meanwhile, the naira recorded a slight appreciation in both the official and parallel markets after Wednesday's trading activities. The naira traded at 1,462/$ compared to 1,465/$ on Tuesday at the official market. The daily forex market turnover decreased by 54 percent, from $268.17 million to $123.45 million. In the parallel market, the dollar was sold for 1,470/$, gaining N10 on Wednesday. A trader at the Wuse Zone 4 Market, Malam Yahu Ibrahim, noted that trading activities had been slow due to the apex banks monetary policy committee meeting. Ibrahim observed that the market has been less active, likely because of the CBN meeting, with trading at N1,470 and buying between N1,450 and N1,455. Demand persists, but traders are waiting to see what developments occur, with potential changes expected next week.