Reps summon CBN boss Emefiele over $1bn forex sold by IOCs

The long drawn face off between the Central Bank of Nigeria (CBN) and the Nigeria National Petroleum Corporation (NNPC) over deployment of foreign exchange realized from sales of oil blocs in Nigeria has taken a new dimension.

This is as the House of Representatives Ad hoc Committee on the Reduction of Petrol Prices has queried the CBN governor, Godwin Emefiele, to explain how about $1billion foreign exchange realised from the sales was disposed of in 2016.

The CBN boss is to appear before the committee to explain how the International Oil Companies (IOCs) were given approval to sell forex to major oil importers and to the apex bank as well.

Hon. Nnanna Igbokwe, head of the committee alleged that the $1billion realized from some oil exploration deals was in June 2017 sold by the IOCs to some interest groups below the prevailing market rate.

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“At a time, it was only the IOCs that had enough foreign exchange back up for the economy and it made economic sense to approach them for the sale,” disclosed Director, Financial Markets Department at the CBN, Mr. Alvan Ikokun,

But when Ikokun was taken up on Monday by the House committee on this, he said the CBN lacked the power to monitor transactions that takes place between the marketers, IOCs and NNPC based on the agreement entered into for all transactions in the sector.

The committee chairman expressed disappointment that the apex bank, which regulates all sectors as far as foreign exchange dealership is concerned allowed such.

But the explanation by CBN was that it relaxed the rules in June.

The committee thereafter summoned Emefiele to its next sitting to come with the details of the petroleum products dealers allocated forex from January 2015 till date, all dealers allocations and the banks they passed through; the criteria to assess forex and all relevant documents to support the transactions.

But the managing director of now rested Gulf Bank and a financial expert, Mr. Adeyemi Lawson said the money under dispute was the IOCs’ revenue, which they have every right to handle the way they want.

“If the IOCs had repatriated the funds to their home countries, would anybody have blamed them? All that Nigeria needs is to encourage more foreign investors into the system,” he said.

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