The Crimes of Godwin Emefiele: From Illegal Bank Acquisition to Billions Stashed Abroad
From the Naira redesign policy, which President Bola Tinubu claimed during the campaign was initiated to thwart his presidential ambitions, to bans on certain domestic goods, cryptocurrency, and the printing of Naira, former Central Bank Governor (CBN), Godwin Emefiele, gained notoriety for spearheading controversial monetary policies that adversely affected Africa’s most populous nation.
However, seven months after his removal as CBN Governor, Emefiele faces intense investigation not for the aforementioned policies but for alleged misappropriation of funds, money syphoning, illegal wealth acquisition, and misuse of office. When Tinubu announced his suspension a week after assuming the presidency, Emefiele was promptly arrested by the Department of State Security (DSS), the Nigerian agency responsible for upholding criminal laws.
There has been series of investigations, court cases, and speculations surrounding Emefiele’s tenure as CBN Governor. His nine-year term, the second-longest in the country’s history, began in June 2014, when he was appointed by former President Goodluck Jonathan after the suspension of Lamido Sanusi. However, the scrutiny on the embattled former CBN chief mostly revolves around his tenure under former President Muhammadu Buhari.
His tenure, marked by economic stagnation, inflation, poverty, and currency devaluation, is now entangled in new controversies over alleged misappropriation of public funds, illegal wealth accumulation, and misuse of office.
While notable financial and business figures in Nigeria have been dragged into the ongoing investigation, below are some discoveries that the special investigative panel set up by President Tinubu has made regarding Emefiele’s tenure.
Hundreds of Unauthorised Foreign Bank Accounts Stacked With Billions
The ongoing investigation, led by Jim Obazee, reveals that Emefiele, without approval, held billions in not less than 593 foreign bank accounts. According to the special investigation panel, “Emefiele invested Nigeria’s money without authorization,” with one UK bank account alone hoarding 543 million pounds, equivalent to ₦658 billion.
Although the total amount remains unclear, the report, according to Bloomberg, is in billions.
Illegal Acquisition of Nigerian Banks
Perhaps the latest development in the ongoing probe is the sacking of the boards of three Nigerian banks: Union Bank, Keystone Bank, and Polaris Bank. This action is believed to be in connection with their illegal acquisition by Emefiele.
“The Central Bank of Nigeria has dissolved the Board and Management of Union Bank, Keystone Bank, and Polaris Bank,” a statement issued by the apex bank on Wednesday, January 10, 2024, and seen by Neusroom, reads in part. It added, “This action became necessary due to the non-compliance of these banks and their respective boards with the provisions of Section 12 of Banks and Other Financial Institutions Acts, 2020.”
The dissolution of these banks by the current CBN Governor, Olayemi Cardoso, is within his authority, with the approval of the CBN’s board to revoke the licences of the banks.
Bloomberg, in late December 2023, reported that Emefiele bought two banks, Union Bank of Nigeria and Keystone Bank, “through several proxies from ill-gotten wealth and without evidence of payment.” A statement by Jim Obazee in late December last year said that the investigation panel is “on the verge of recovering these two banks for the Federal Government.”
Shady Foreign Exchange Dealings Under Emefiele
During Emefiele’s tenure, the Central Bank of Nigeria (CBN) operated two foreign exchange windows, known as the Official and Parallel markets. The unification of the country’s multiple exchange rate windows was one of Tinubu’s monetary policies after he was sworn in May. Although the new policy caused the value of the naira to plummet to a record low, with disparities still existing, Emefiele’s multiple exchange regime faced criticism from experts. The ongoing investigation delves into how the former governor managed the country’s currency.
Africa’s richest man, Aliko Dangote, and his Group of Companies are among about 50 companies entangled in the complex and controversial exchange system that Emefiele operated.
On January 4, 2024, the Economic and Financial Crimes Commission (EFCC) raided the headquarters of the Dangote Group, believed to be in connection with the ongoing investigation into forex allocations in the country during Emefiele’s tenure.
Recall that Neusroom reported that at the commissioning of Dangote Refinery on May 22, 2023, Emefiele stated that the CBN provided about ₦125 billion for domestic currency requirements while “ensuring the availability of foreign exchange (FX) to pay for imported equipment.” It is believed that the FX provided for Dangote might have been at the official rate. However, ordinary Nigerians, importers, exporters, and students looking to pay their abroad tuition fees often obtained it at the unofficial rate, which was over 60 percent higher than the CBN rate.
