In a recent statement, the Head of Strategic Communications at ONSA, Zakari Mijinyawa, announced the establishment of a collaboration between the National Security Office (ONSA) and the Central Bank of Nigeria (CBN). to combat illicit activities in the country’s foreign exchange market.
This new initiative follows intelligence reports highlighting the persistence of violations in this sector. Thus, ONSA and the CBN have embarked on a collaborative approach with key law enforcement agencies including the Nigeria Police Force, Economic and Financial Crimes Commission, Nigeria Customs Service and the Financial Intelligence Unit of Nigeria.
The primary objective of this partnership is to systematically identify, thoroughly investigate and appropriately sanction individuals and organizations involved in improper activities in the foreign exchange market. This approach aims to deter malicious practices, protect the interests of investors and promote sustainable economic growth.
As part of these joint efforts, the government is demonstrating its commitment to improving its anti-money laundering and anti-terrorism financing framework, with a view to exiting the Financial Action Task Force (FATF) gray list. . These measures also aim to promote a stable and transparent foreign exchange market, strengthen investor confidence and promote the economic well-being of the country.
It is noteworthy that despite the proactive measures taken by the CBN to stabilize the foreign exchange market and stimulate economic activities, these are hampered by the activities of speculators, both domestic and international, which contribute to the depreciation of the Nigerian naira and economic instability.
In order to counter exchange rate volatility, the CBN has launched a comprehensive strategy to strengthen liquidity in the foreign exchange market, including unifying foreign exchange market segments, clearing outstanding foreign exchange obligations and introducing new operational mechanisms for exchange offices.
In addition, the CBN implements net open position limits for commercial banks and adjusts the cap on demand deposit remuneration rate.
This collaboration between ONSA, CBN and security agencies aims to ensure a healthier financial environment, enhance investor confidence and support Nigeria’s economic growth.