Reps to grill banks, oil firms over $30bn forex racketeering

The House of Representatives has summoned 24 banks and 14 oil companies over an alleged forex racketeering leading to an annual loss of over $30bn as revenue.

The Joint House of Representatives Committee on Finance; and Banking and Currency will on Monday begin an investigative hearing.

Those appearing before the committee are to explain their roles in the alleged over $30bn revenue leakages arising from oil revenue interest payment on account of foreign currency dominated contracts by companies in engineering, procurement, construction, installation and marine transportations.

According to the committee, which is jointly chaired by James Faleke (Finance) and Victor Nwokolo (Banking and Currency), the investigative hearing would be conducted in accordance with COVID-19 protocols. The committee said the hearing would be conducted in phases, with the first phase lasting three weeks.

The banks summoned by the committee are Unity Bank, Stanbic IBTC, United Bank of Africa, Polaris Bank, First City Monument Bank, Fidelity Bank, Keystone Bank, FBN Merchant Bank, Access Bank, Bank of Industry, Jaiz Bank, Coronation Merchant Bank, SunTrust Bank, Union Bank, CitiBank, Guaranty Trust Bank, Ecobank, First Bank of Nigeria, FSDH Merchant, Sterling Bank, Zenith Bank, Wema Bank, Standard Chartered Bank and Heritage Bank.

The oil firm are Nigeria Agip Exploration, Nigeria Agip Oil Company, PAN Ocean Oil Nigeria Limited, Shell Nigeria Exploration & Producing Company Limited, Esso Exploration & Producing Nigeria Limited, Mobil Producing Nigeria Limited, Statoil Company Limited, and Shell Petroleum Development Company.

Others are Star Deep Water Petroleum Nigeria Limited, Total E&P Nigeria Limited, Total Upstream  Nigeria Limited, Sterling  Oil Exploration  Energy Limited, Addax Petroleum  Development Company Limited, and Addax  Exploration Limited.

The House had on March 5, 2020, resolved to investigate the Central Bank of Nigeria and the Federal Inland Revenue Service over alleged racketeering in the allocation of foreign exchange to companies.

The House, which said the leakages were causing the Federal Government to lose revenue worth over $30bn, had also resolved to probe commercial banks, forex dealers, importers and beneficiary companies.