CBN investigates AbokiFX founder Oniwinde Adedotun faces up to 2 years in jail amid rising exchange rate Nigeria news
- Central Bank of Nigeria investigates abokiFX founder Oniwinde Adedotun as umbrella bank clamps down on operation
- Adedotun faces two years in jail for abokiFX’s exchange rate report, which violates Nigeria’s laws
- Founder of digital forex tracker also under investigation for alleged manipulation of black market exchange rates
Oniwinde Adedotun, the founder of abokiFX, faces two years in prison and a fine over allegations that his digital media violated the 2004 National Intelligence Committee Act.
Addotun’s abokiFX tracks exchange rates on Nigeria’s black market, informing Nigerians and foreigners interested in the parallel market of exchange rate movements.
What the law says, how abokiFX violates it
But this is against the Foreign Exchange Reporting Law, which states that any person or organization reporting exchange rates other than those of the bank has committed an offense.
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It was collected from article 11 of the 2004 law on the National Intelligence Committee., that any person, association of natural persons or public and private legal person publishing or publishing exchange and interest rates other than those of the bank will pay the following;
In the case of an individual, the fine of 100,000 naira will be imposed, along with two years’ imprisonment, separately, or will incur both penalties.
While a company will be fined 500,000 N and its certificate of registration or constitution will be revoked.
Alleged manipulation of forex, illegal foreign exchange transactions
Besides abokiFX’s violation of the Foreign Exchange Rate Reporting Act, Adedotun has also been accused of manipulating black market exchange rates which have been rising in recent times.
Since the Central Bank of Nigeria banned Bureau de Change operators from receiving foreign exchange from commercial banks to support their operations, abokiFX reported that the value of the naira has increasingly weakened against foreign currencies.
One pound hits N745 as CBN ban on Bureau De Change operators affects availability
Currently, abokiFX reported that $ 1 to a naira is N570, the exchange of one UK pound for N770, while one euro is trading against N655 on the parallel market.
In addition, the CBN requested details of seven accounts owned by Adedotun and abokiFX, to investigate transactions involving them.
CBN to produce digital naira in Nigeria
The financial regulator has been pushing for a digital currency, e-naira, for the country since it banned cryptocurrency trading in Nigeria earlier this year.
The CBN has banned cryptocurrency exchanges from operating in Nigeria and banned banks from doing business with them.
The Nigerian e-naira is slated for October, the country’s Independence Day month, but it will not be an interest-bearing asset.