EFCC launches crackdown on Dollar racketeers, summons private universities charging in Dollars amid Naira slide

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In a bid to stabilize the falling naira, the Economic and Financial Crimes Commission (EFCC) has deployed a 7,000-strong task force across the country to target “dollar racketeers.” This move comes amidst growing concerns about the deteriorating value of the Nigerian currency, which has lost significant ground against the U.S. dollar in recent weeks.

Spokesperson Dele Oyewale confirmed the deployment on Wednesday, highlighting the targeting of private universities and schools charging tuition in dollars. This action raises questions about the legality and potential impact of such practices on the foreign exchange market.

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Oyewale said, “The EFCC has raised a special task force in all its zonal commands for the enforcement of extant laws against currency mutilation and dollarization of the economy.

“The taskforce, inaugurated by the Executive Chairman of the commission, Ola Olukoyede, was raised to protect the economy from abuses, leakages and distortions exposing it to instability and disruption.

“Already, the commission has made some arrests of perpetrators of issuance of invoices in dollars and mutilation of the naira in Lagos and Port Harcourt.

“Also, proprietors of private universities and other institutions of higher learning charging fees in dollars have been invited by the Commission.

“The commission is committed to the enforcement of all laws in place for the reflation and stimulation of the economy.”

Analysis:

• Economic Context: The naira’s depreciation is attributed to various factors, including declining oil prices, capital flight, and inflation. The EFCC’s crackdown signifies a shift towards targeting individuals and institutions perceived to contribute to the currency’s instability.
• Impact on Private Universities: Summoning institutions charging in dollars could force them to either switch to naira or potentially face legal consequences. This could lead to increased costs for students and parents, raising concerns about accessibility and affordability of higher education.
• Effectiveness of Crackdown: While the aim is to deter speculation and stabilize the forex market, the long-term impact of such targeted actions remains debatable. Addressing broader economic challenges and potential policy adjustments might be crucial for sustainable improvements.
• Lack of Transparency: The details regarding the criteria for identifying and targeting “dollar racketeers” remain unclear. Ensuring transparency and due process will be vital to uphold public trust and the legitimacy of the EFCC’s actions.