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CSOs recommend probe of dollar deposits in banks

By on August 22, 2015

A coalition of Civil Society Organisations has called on the Central Bank of Nigeria and security agencies to trace the source of the huge dollar deposits in commercial banks, noting that they could be illicit funds being used to fund terrorism in the country.

The CSOs said that the large amount of dollar deposits reinforced a recent international report that ranked Nigeria high on movement of illicit funds.

The Coordinator of the CSOs, Mr. Etuk William, who said this at a news conference on Thursday in Abuja, blamed the high volumes of dollars in circulation and increasing activities of speculators for the fall of the naira.

He said, “The huge cash deposits of dollars reinforce a recent international report that ranks Nigeria high on movement of illicit funds.

“We therefore call on the CBN along with relevant security agencies to trace the source of these huge cash deposits in order to ensure that we do not have cases of money laundering or terrorism financing in our banking system.”

William lauded the new CBN policy on foreign exchange, saying it would enhance the legitimacy and transparency of transactions in the financial system, especially as President Muhammadu Buhari sought to tackle corruption and end impunity.

He challenged Nigerians to support the CBN policy, saying that if well implemented, it would create employment opportunities and develop the economy.

He explained that the policy which prevented excessive imports of items like toothpicks, eggs, rice and other locally produced goods, would conserve the nation’s foreign reserves.

Williams stated that creating a productive base for the country would require less emphasis on the oil and gas sector, which he said employed less than 200,000 people when compared to other sectors like agriculture and manufacturing.

According to him, by allowing importation of items that could be produced locally, “the nation is simply importing poverty and exporting jobs to other countries.”

 

[Punch]