Twenty-Five Companies Under CBN Radar For Forex Manipulations

The Central Bank of Nigeria in its bid to pursue some monetary policy goals for the country has made decisive policies that either directly or indirectly hunted some Nigerian and foreign companies this year.

The regulator has since 2020 battled the rising inflation which is currently at 17.38 per cent and the precedented slide of the naira against the United States dollars.

The naira has devalued thrice since 2020 to fall at N410.58 official rate and N572 against the dollar at the unofficial market.

The CBN Governor, Mr. Godwin Emefiele, in June devalued the official rate of the naira to N410 from N379 per US dollar.

Part of the apex bank’s strategy was to hunt companies allegedly aiding the fall of the naira through speculative businesses.

So far, the CBN has either banned, sanctioned or suspended the accounts of over 25 companies operating in the country.

Aboki FX

Aboki Fx is the most recent platform that fell out with the central bank over its alleged role in the devaluation of the naira as claimed by the regulator.

During the last Monetary Policy Meeting of the CBN held on September 17, 2021, Emefiele had accused the online platform that gathers the black market rates in Nigeria of indulging in forex speculation.

This led to the suspension of the publication of daily rates by the platform.

Emefiele said the owner of the website, a London based Nigerian, Oniwinde Adedotun, must explain how he gathered his rates.

He revealed that the company was registered in the UK in November 2015, and has 25 bank accounts with 8 different Nigerian banks.

“Another findings reveal that Mr Oniwinde, the owner of Aboki Fx, is an illegal FX dealer. Between February 2020 and May.. has sold millions of naira in FX to several Nigerian companies and we will find those companies as well,” said the CBN boss.

Freezing of Accounts Of Six Online Investment Platforms

A Federal High Court sitting in Abuja granted an ex parte motion which sought temporary freezing of bank accounts belonging to some online investment and trading platforms on August 17, 2021.

The central bank alleged that the companies operated without license as asset management companies.

They are: Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses and Trove Technologies Limited

CBN also said they were “utilizing FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of the CBN circular referenced TED/FEM/FPC/GEN/01/012, dated July 01, 2015.”

The court empowered the apex bank to direct ZENITH BANK PLC, GUARANTY TRUST BANK PLC, STANDARD CHARTERED BANK, ACCESS BANK OF NIGERIA and VFD MICROFINANCE BANK to freeze the accounts held by the companies in their banks for 180 days.

• Rise Vest Technologies Limited

Rise Vest Technologies Limited was Incorporated in October 2018 with objects of technological and business consultancy.

The shareholders of the company at incorporation were Eke Eleanya Urum and Rise Vast Technologies Limited (USA).

CBN said information on the platform shows it is involved in payments and settlements as well as internal and international remittances, an action which it said was not legitimate.

CBN said, “the company consummated its asset management activities through its account 1017556580 with Zenith Bank Plc, which recorded a turnover of N1.97bn between January 1, 2019 and April 27, 2021.

“Inflows to the account were mainly from retail investors through two Payment Service Solution Providers (PSSPe): Flutterwave (N588.61 million) and Monnify (N967.58 million).

“Outflows from the account were to a PSSP – Paystack (N500. 00 million) and cryptocurrency traders Ike BuyCoins (N110.00 millIon) and Beltlum Venture (N350.00 million). Inquiries on the transactions confirmed that the transfers to Buycoins were for the purchase of cryptocurrency.”

Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS
Bamboo Systems Technology Limited Bamboo Systems Technology Limited is owned by US-based Bamboo Global LLC (99.99%) and Oluwole Raiph Olugbenga (0.01%), according to CBN.

The company was incorporated in December 2018 to undertake the business of software design, implementation, development, maintenance and consultancy amongst others.

“Further reviews showed that Bamboo Systems Technology Limited operates an online App, “Bamboo”, that provides a medium for investors to buy and sell stocks, exchange traded funds (ETFs), Index funds and derivatives listed in major exchanges in the U.S,” said CBN.

• Chaka Technologies Limited

Chaka is a Nigerian owned fintech platform that deals on asset investments co-founded by CEO Tosin Osibodu.

On its website, Chaka said its local assets are registered with the Nigerian Stock Exchange (NSE), Central Securities Clearing System (CSCS), and regulated by Securities Exchange Commission of Nigeria (SEC).

Its dollar assets are regulated by the US FINRA and the US SEC.

But CBN said it was utilizing FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of the apex bank’s policy.

• CTL/Business Expenses

The CBN accused CTL/Business Expenses of illicit forex transactions, hence leading to the freezing of its account for 180 days.

• Trove Technologies Limited

Trove is a technology platform with an office in Lekki, Lagos State and allows Nigerians and others to invest in US-traded securities.

It said its Nigerian account traded securities are provided by Sigma Securities LTD, a SEC registered broker-dealer and member of the Nigerian Stock Exchange.

“Managed Portfolios are provided by ARM Investment Managers, a licensed Asset manager in Lagos, Nigeria.”

Millions became trapped following the CBN action, but some of the firms including Bamboo and Rise Vest sent messages to customers reassuring them the safety of their investments.

Blocking of Accounts of 18 Companies

In August 2021, CBN directed banks to freeze the bank accounts of 18 companies.

Although the bank in its circular did not state the reason for the clampdown, THE WHISTLER gathered that the affected accounts belong to Bureau De Change (BDCs), construction firms, investment companies, laundering services, and property companies.

The affected companies were: Bakori Mega Services, Ashambrakh General Enterprise, Namuduka Ventures Limited, Crosslinks Capital and Investment Limited, IGP Global Synergy Limited, Davedan Mille Investment Limited and Urban Laundry.

Others are Advanced Multi-Links Services Limited, Spray Resources, Al-Ishaq Global Resources Limited, Himark Intertrades, Charblecom Concept Limited, Wudatage Global Resources.

The list also include Treynor Soft Ventures, Fyrstrym Global Concepts Limited, Samarize Global Nigeria Limited, and Zahraddeen Haruna Shahru.

• Bakori Mega Services

Bakori Mega Services was incorporated in 2018 in Kaduna. The business has links with Tirzmizi Usman Muhammad based on findings by THE WHISTLER.