EFCC flags third-party Dollar transactions by foreign missions in Nigeria

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The Economic and Financial Crimes Commission (EFCC) has raised concerns about the practices of some foreign missions operating in Nigeria. The commission alleges that these missions are circumventing regulations by using third-party agents to conduct transactions in US dollars, Nigeria’s non-legal tender.

The EFCC spokesperson, Wilson Uwujaren, disclosed this during an interview on The Morning Show on Arise Television.

“What actually happened is that the commission, over time, observed that a number of the foreign missions, by how they handled consular services, have engaged third parties to carry out consular services on their behalf, and those third parties have been invoicing in dollars.

“Some even went to the ridiculous extent of determining the exchange rate of the naira in the course of the transaction with Nigerians and some foreign nationals based in Nigeria.

“We thought that that practice conflicted with extant laws and regulations in Nigeria, and we felt compelled to bring this practice to the knowledge of the missions through the Ministry of Foreign Affairs,” he added.

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The Allegation:

• The EFCC claims that certain foreign missions utilize third-party agents to bill for consular services, such as visa applications, in US dollars.
• These agents reportedly set their own exchange rates, further deviating from the official naira-based system.

EFCC’s Stance:

• The EFCC emphasizes that the Nigerian naira is the only legal tender for transactions within the country.
• Their concern lies in the potential violation of this regulation and the lack of transparency associated with third-party invoicing and exchange rate determination.

Clarification on Authority:

• It’s important to note that the EFCC acknowledges it lacks the authority to directly ban foreign missions from specific financial practices.
• However, the commission emphasizes its responsibility to identify and address potential financial irregularities.

Diplomatic Channels:

• The EFCC reportedly issued an advisory letter to the Ministry of Foreign Affairs, urging them to inform foreign missions about the proper financial procedures.
• This suggests an attempt to address the issue through diplomatic channels rather than direct intervention.

Potential Implications:

• This situation raises questions about:
  Transparency and fairness in consular service fees.
  The potential for unofficial currency exchange practices.
  Compliance with Nigerian financial regulations by foreign missions.

Looking Ahead:

• The Ministry of Foreign Affairs’ response to the EFCC’s advisory and their communication with foreign missions will be crucial in determining the resolution.
• Whether this will lead to stricter adherence to naira-based transactions or a revised system for consular fees in collaboration with foreign missions remains to be seen.

Additional Considerations:

• It’s unclear how widespread this practice of using third-party dollar transactions is among foreign missions.
• The potential impact on Nigerians seeking consular services and the associated costs needs further investigation.

The EFCC’s intervention highlights the need for clearer regulations and communication regarding financial practices by foreign missions operating in Nigeria.