The Economic and Financial Crimes Commission (EFCC) intensified its crackdown on bureau de change (BDC) operators during the latest round of raids conducted on Wednesday. The operations targeted key hubs in cities such as Lagos, Abuja, Ibadan, Kano, and Aba.

Despite these enforcement actions, the NAFEX rate experienced a 2.89% depreciation, settling at N1,621.41/USD, while the BDC rate decreased by 0.82%, closing at N1,840/USD.

Reports from sources revealed that the Allen Avenue hub in Lagos witnessed EFCC operatives arresting at least 10 individuals around noon on Wednesday. In Ilorin, a BDC operator at Kwara Hotel confirmed that operators closed their shops upon hearing news of the raids in Lagos, Abuja, and Kano.

Similarly, at the renowned Kano currency exchange market, WAPA, EFCC personnel reportedly apprehended several operators on Wednesday afternoon. Witnesses noted that EFCC officials, initially in plain clothes, struck after the market became active, arresting some currency exchange operators.

In Abuja, over 50 operators were reportedly arrested in the Zone 4 area of the Federal Capital Territory by security operatives.

Additionally, there are indications that the Nigerian government is contemplating blocking online platforms, including Binance, to prevent perceived forex market manipulation and illicit fund movements. This decision is driven by concerns that such platforms contribute to an artificial devaluation of the naira against the dollar.

The Central Bank of Nigeria (CBN) expressed concern over the recent bearish trend of the naira, attributing it to speculative sites causing artificial devaluation.

Binance, responding to these developments, explained that it took measures to adjust trading on its platform by Nigerians to address what it deemed an unusual currency movement. The company distanced itself from the forex situation in Nigeria, emphasizing that its platform operates based on market dynamics and is not intended as a proxy for currency pricing in the country.

The Association of Bureau de Change of Nigeria (ABCON) president, Aminu Gwadabe, expressed support for efforts to eliminate street trading in the foreign exchange market. He emphasized the association’s ongoing reforms and called for CBN support to implement an automated system within three weeks, intending to revolutionize the retail exchange market.

By Sunday Michael Ogwu (Abuja), Abdullateef Aliyu (Lagos) & Ibrahim Musa Giginyu (Kano) From the News Source; DailyTrust