N30BN FOREX LEAKAGES: Reps begin probe of companies manipulating system

An investigation into companies allegedly manipulating the Central Bank of Nigeria (CBN) foreign exchange regime for their own selfish gains has been launched by the House of Representatives.

The probe was launched on Thursday when the House reached the resolution following a motion moved by James Faleke after many issues were discovered in the process of revenue monitoring in the past three weeks.

Faleke in his motion stated that Nigeria is losing over $30billion annually to companies who are manipulating the system.

The lawmaker while leading the debate said, “In the process of our revenue monitoring in the past three weeks, we discovered many issues. Every company has the liberty to apply for forex for importation of equipment or whatever they need in order to continue with their businesses.

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“At the point of applying for forex, some of them use performance invoice. For instance, let’s say a merchant has $50,000 performance invoice, at the point of shipment, they collude with exporters from other countries, to reduce the value of that shipment.

“Meanwhile, they have secured $50,000 at the official exchange rate. When they get to Nigeria, they pay less to customs, based on the reduced value, at the end of the day, they go ahead to clear the goods, that they use the equipment for their production. However, they inflate the value of the equipment in order to take capital allowance, thereby reducing the 30% tax they are supposed to pay.

“Some companies take forex from CBN and invest in shares of US stock market; they take forex at our official rate and invest in some foreign economies that are not related to Nigeria. It’s like capital flight. We need to block and expose them,” he added.

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