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SINET Calls For Probe Into $2.4 Billion Forex Trading Fraud, Urges CBN To Honour Forward Contracts


Feb 19, 2024

The Social Integrity Network (SINET) has called for a thorough investigation into the alleged $2.4 billion forex trading fraud, demanding further clarification on statements attributed to the Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso. SINET has urged President Ahmed Bola Tinubu and the National Assembly’s leadership to intervene, compelling the CBN Governor to reconsider and honor forward contracts with proper compliant documents.

In a statement released on Monday, SINET’s national coordinator, Ibrahim Issah, highlighted concerns about the economic repercussions of the Governor’s recent declarations. The group questioned the validity of the claims and emphasized the potential adverse effects on businesses, public perception, and the nation’s economy, both domestically and internationally.

The statement contested the CBN Governor’s assertion that a forensic investigation by Deloitte Management Consultant revealed the $2.4 billion forex trading fraud on February 5, 2024. SINET argued that the claims were baseless, lacking merit, and overlooking the potential consequences for the economy and the forex market.

According to SINET, genuine businesspeople across the country had borrowed funds from commercial banks to secure forex from the CBN through forward contracts. The funds were subsequently deposited with the CBN for over eighteen months for allocated forwards, which the CBN is now deeming fraudulent transactions. The failure to honor these forward contracts has led to unpaid Letters of Credit (LCs), causing accrued interest on foreign loans.

The statement raised critical questions about the impact on foreign banks expecting payment, the businesses and employees affected by the cancellations, and the overall economic stability of the nation. SINET urged the Senate President and the President of Nigeria to intervene, calling on the CBN Governor to reconsider honoring forward contracts with proper compliant documents.

Lastly, SINET called on the coordinating minister for the economy, Mr. Wale Edun, to engage with the CBN on the issue of undelivered forward contracts. The group highlighted the closure of nearly 60% of manufacturing companies in Nigeria due to forex volatility and emphasized the importance of addressing the concerns to support the remaining companies and attract new investors.

The call for a thorough investigation and intervention aims to mitigate the potential adverse effects on businesses and the nation’s economy resulting from the alleged forex trading fraud. The CBN’s response to these demands remains awaited.

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