Alleged Forex Manipulation: Court Freezes 65 Bank Accounts of 12 Firms

Justice Ahmed Mohammed of the Abuja Division of the Federal High Court has ordered the freezing of 65 bank accounts belonging to 12 firms and a man over alleged manipulation of the Nigeria’s foreign exchange market.

The order was sequel to an exparte application brought by the Central Bank of Nigeria (CBN) against the firms, seeking the court’s intervention pending its conclusion of investigations into alleged fraudulent activities of the defendants.

The applicant, in the motion ex-parte marked: FHC/ABJ/ CS/979/2020, claimed that the activities of the firms and an individual identified as Adekunle Alonge, are “the cause of the current volatility and imbalance in the foreign exchange regime in Nigeria with the attendant negative impact on the economy.”

Counsel to the plaintiff, former Attorney General of the Federation (AGF) and Minister of Justice, Mike Aondoakaa (SAN), told the court that unless the order sought was granted by the court, the plaintiff/applicant would be unable to safeguard the balances on the defendants/respondents’ account against depletion, pending the investigation on the activities of the defendants/respondents by the CBN.

The applicant’s lawyer explained that the affected firms owned by some Chinese nationals were able to access foreign exchange with the invention of the highest levels of governments in Nigeria and China with the promise to engage in the production of textile materials in Nigeria.

Aondoakaa disclosed that the firms, after accessing the foreign exchange, however, resorted to smuggling textile materials from neighbouring countries into Nigeria.

According to the senior lawyer, the CBN is carrying out the investigation in collaboration with authorities of the Republic of Benin, which he said were also conducting similar investigation.

He, therefore, prayed the court to order the applicant to freeze the bank accounts of the affected firms for the period of 180 days to enable the CBN conclude its investigations in the alleged infractions.