Why the Nigerian Government want AbokiFX to shutdown permanently

Why the Nigerian Government wants AbokiFX to shut down permanently?

Godwin Emefiele, the Governor of the Central Bank of Nigeria, said the bank intends to prosecute the owner of the famous and controversial AbokiFX, Olusegun Oniwinde after shutting down their operations. He said this while responding to questions after the Monetary Policy Committee's two-day meeting in Abuja on Friday, 17th September 2021.

The reason for the intended actions of the Central Bank of Nigeria towards AbokiFX is for several reasons but the top is that except for the Investors and Exporters windows, the CBN doesn't recognize the other forex market window.

Another reason for the choice, he said, is that "we have unwittingly supported activities of those who illegally buy foreign exchange from this illegal market, transport them out of the country in aircraft, go buy arms and ammunition, and convey them back to the country and conduct a crime, whether it's Boko Haram, kidnapping, or every kind of nefarious activities." We, the CBN, sell our country's currency to folks that then use it to shop for weaponry and ammunition to come back and harm us.

The CBN Governor said that Mr. Oniwinde is an illegal exchange trader who has inflowed and sold tens of a lot of dollars in foreign currency to numerous Nigerian enterprises in violation of the exchange rules; he personally gains from the rates he quotes daily on his website. Mr. AbokiFX has over 20 accounts with 8 banks and every one of those accounts is full of money.

Godwin Emefiele, the Governor of the Central Bank of Nigeria, shocked the financial world when he took a swipe at AbokiFX in his monetary policy briefing on September 17th, accusing it of foreign currency manipulations and suggesting that it profited by setting black market rates that deliberately increased the value. The website's owner released a press statement emphatically refuting the allegations, and also the platform's display of FX rates was subsequently suspended pending the result of the incident.

So, who/what is AbokiFX?

AbokiFX may be a web tool/online platform that tracks and reports changes within the exchange market that have been existing since 2014.

This controversial website is owned by Mr. Olusegun Oniwinde who is an England-based Nigerian.

Impact of AbokiFX on the Nigerian charge per unit

"Preliminary results reveal that this website was developed and is being utilized solely for the aim of exchange manipulation and speculation," Emefiele remarked over again. They buy Naira notes, exchange them for dollars, create a foothold, adjust the rate over time, sell the dollars they bought, and profit.

The value of the naira has fallen in recent months, especially since the CBN ceased selling currency to Bureau De Change (BDC) operators in July 2021, widening the gap between parallel and NAFEX values.

The local unit was trading at roughly 520/$1 before the restriction, but it plummeted to 570/$1. consistent with abokiFX statistics, the naira has experienced its worst single-day visit in previous months on the parallel market, falling by $8.00 or 1.42 percent from 562/$1 to 570/$1 in barely over 24hours.

This is affecting more than just the rate in exchange in Nigeria; it's spreading across sectors of the state. The negative impact of the prolonged collapse within the value of the naira against the dollar on the country's manufacturers' production and operational costs has escalated over the months and continues to rise by the day.

Here's what the CBN Governor, Emefiele has to say.