By Ben Ogbemudia and Nathaniel Zacchaeus
The Economic and Financial Crimes Commission (EFCC) yesterday said some Bureau De Change (BDC) operators who were recently arrested in Lagos, Abuja, and other parts of Nigeria had over $6m.

This came just as Senators yesterday engaged themselves in a shouting match as the plenary became rowdy during a debate on a motion on the Naira Redesign Policy of the Central Bank of Nigeria.

However, speaking on a Nigerian Television Authority’s (NTA) programme monitored by ThisNigeria, the EFCC Chairman, Abdulrasheed Bawa, said that the arrests of the BDC operators were part of efforts of the anti-graft agency to sanitise the foreign exchange sector.

Bawa, who spoke on: “Sanitising ungoverned operators in the forex sector,” said the EFCC’s arrest of BDC operators and currency speculators in the parallel market was not indiscriminate but a product of intelligence.

Represented by the Commission’s Director of Operations, Abdulkarim Chukkol, the EFCC chairman said, “At EFCC, we work with intelligence and with other stakeholders; and when we talk of illegal forex operators you cannot just invite people on the street even though sometimes you could, but generally you do not have a choice but to make an arrest.

“Some were arrested with an excess of $6m, others with $2m, and we know that these huge sums were not meant to be used in buying goods, but stolen monies being laundered out of the country.”

The EFCC chairman noted that the commission did not only recover some of the monies but secured their forfeiture to the Nigerian government while the culprits were prosecuted.

Bawa also emphasised the need for active inter-agency and stakeholder collaboration, pointing out that many of the over 6,000 registered BDCs do not belong to the Association of Bureau De Change Operators of Nigeria and therefore out of the orbit of regulators.

The EFCC Chairman said that “The CBN guidelines are clear regarding returns by BDCs, but how many of them do this.”

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*Arrest currency speculator in Abuja

The agency also confirmed the arrest of one Mustapha Muhammad, an alleged currency speculator in Abuja.

The Commission on its official Twitter handle on November 16 alleged currency speculator whose picture was released by the EFCC is also known as Mustapha Naira.

The commission noted that the arrest was made as part of their effort to sanitise the foreign exchange market, and all shades of economic sabotage.

The statement, according to the EFCC, Mustapha was arrested on Saturday in the Wuse area of Abuja.

“As part of its ongoing operation to sanitise the foreign exchange market and rid it of speculators and all shades of economic saboteurs, the EFCC has arrested one Mustapha Muhammed alias Mustapha naira.

“He was picked up by operatives of the commission on Saturday, November 12, 2022, at Wuse Zone 4, the hub of parallel market operations in the Federal Capital Territory. The suspect has made a useful statement while the investigation continues.”

The EFCC said that some Bureau De Change operators who were recently arrested in Lagos, Abuja, and other parts of Nigeria had over $6m.

*Senate in rowdy session over debate on new currency policy

Meanwhile, senators engaged themselves in a shouting match as the plenary became rowdy during a debate on a motion on the naira redesign policy of the CBN.

The motion was moved by the Chairman of the Senate Committee on Banking, Insurance, and other Financial Institutions, Senator Uba Sani.

Sani in the prayers to his motion urged the Senate to provide legislative support for the policy.

He also urged the red chamber to mandate his Committee to embark on aggressive oversight of the matter

Sani also urged the Senate to support the CBN design policy including the January 31 deadline for compliance.

Trouble started after senators Ali Ndume, Abiodun Olujimi, Betty Apiafi, Barau Jibrin, Chukwuka Utazi, and Orji Uzor Kalu, supported the CBN policy but suggested the extension of the deadline for compliance.

Kalu specifically wanted the Senate to invite the Governor of the CBN, Godwin Emefiele, to throw more light on the policy while he should be persuaded to extend the deadline to April 30, 2023.

But Senator Gabriel Suswan disagreed with Kalu and others claiming that CBN Governor has always shunned the Senate invitations.

He urged his colleagues to ignore the CBN policy and let the country damn the consequences.

Senator Bassey Akpan stressed the need to support the CBN Governor. He said there should be no discussion on the matter.

Suswan and Akpan’s submissions did not go down well with those seeking an extension of the deadline and the chamber turned rowdy.

It took the persistent appeals by the presiding officer, Omo-Agege to resolve normalcy after 10 minutes of hot arguments among the senators.

Senator Solomon Adeola specifically engaged Senator Bassey Akpan in a hot argument over the matter.

Deputy President of the Senate, Senator Ovie Omo-Agege said it was the prerogatives of the CBN to redesign the naira and put a deadline for compliance.

The Senate, after the rowdy session, offered to provide legislative support for the policy.

It also mandated the Senate Committee on Banking and Financial Institutions to go on oversight.

Senator Ali Ndume had earlier said there are only five banks in the entire 27 local government areas in Borno State since the insurgency started in the state.

Senator Abiodun Olujimi, also said one and a half months was too short to withdraw all the money in circulation to avoid shutting down the economy.

She said the Senate should invite the CBN Governor for further explanation on the issue.

Senator Betty Apiafi said rural banking had been shut down hence the January deadline should be extended.

She said counterfeiting wasn’t enough to change the naira.

She said the implications of the redesign should be critically examined since bandits have said they would be collecting ransom I’m foreign currencies.

Senator Barau Jibrin said the naira redesign cannot halt terrorism but could only reduce it.

Senator Chukwuka Utazi said, because of the rural nature of the country, the leadership of the Senate should interface with the CBN Governor, Gabriel Emefiele.

Utazi explained the implications of the peculiarity of the country, urging the CBN to visit all the rural communities to get first-hand information.

Kalu suggested the extension of the deadline from January 31 to April 31, stressing that the Committee on Banking and Finance should meet with the CBN Governor on the matter.

Sani’s motion is titled, “Re-design of the new naira notes by the CBN- a call for legislative support.”

The motion read, “Notes that currency management is a key function of the Central Bank of Nigeria and the integrity of the Naira and efficient supply of banknotes are indicators of a performing central bank, especially in predominantly cash-based economies such as Nigeria.

“Notes also that in recent times, currency management in Nigeria has faced a series of challenges that have affected the ability of the Central Bank of Nigeria (CBN) to efficiently carry out its mandate of issuing legal tender (i.e., provision of an adequate volume of clean banknotes in the right denominational mix for members of the public).

“Concerned that these challenges will continue to grow in scale, with attendant consequences on CBN and Nigeria’s reputation, if left unaddressed.

“Aware that these challenges are primarily centred on the wholesale hoarding of Naira banknotes by members of the public. Available statistics show that cash outside banks consist of over 80 per cent of Currency-In -Circulation (CIC).

“As at end of June 2022, available data indicated that N2.72 trillion out of the N3.26 trillion currency in circulation was outside the vaults of commercial banks across the country;

“Further aware that recent developments in photographic and computer technology, as well as printing devices, have made the production of counterfeit money relatively easy, thereby increasing the potential threat.

“In recent years, the Bank has recorded a consistent rise in incidences of counterfeiting of the naira, with the N500 and N1000 denomination banknotes most attacked.

“The threat to counterfeiting of the two denominations is a function of the large margin between costs of counterfeiting and gains derivable from the criminal act.

“Observes that the redesign of some of our currency notes will help rein in currency outside the banking system into the banking system thereby making monetary policy more efficacious;

“Observes also that the re-design of the currency will help halt further depreciation of the Naira, as the higher denomination and the volume of banknotes outside the banking system used to attack the currency would reduce.

“Notes that terrorism will also be halted as assess to the large volume of money outside the banking system used as a source for funds to pay ransom to bandits/terrorists would be reduced.

“Notes also that the re-design of the currency would assist in the fight against corruption as the exercise would rein in the higher denomination used for this purpose and the movement of such funds from the banking system could be tracked easily.

“Aware that the CBN’s policy directs that new design notes are to be introduced on 15 per cent December 2022, while the current series will cease to be legal tender after 31st January 2023.

“Further aware that Nigerians’ have legitimate concerns about the time frame within which to comply with the policy.

“However there is a need for Nigerians to comply with the time frame considering the importance of the process to the economy. Convinced that the introduction of any new banknote is a proud and important moment for the country.

“The Senator accordingly resolves to: Urge the senate to provide legislative support for the re-design of the new banknotes. Mandate the Committee on Banking, Insurance, and other Financial Institutions to embark on an aggressive oversight to ensure that Nigerians are adequately protected from the CBN, Banks, and other agencies involved in the process.

“Encourage Nigerians and the general public to comply with the Central Bank of Nigeria’s directive to deposit cash holdings at their respective commercial banks.

“Urge the Senate to support the decision of the CBN given the aforementioned benefits of the currency redesign to the nation.”