‘Unscrupulous elements hiding under the cloak of market forces’ are behind the problems bedeviling the Nigerian currency- Naira- says the federal government.

Abubakar Malami, the Attorney General of the Federation and Minister of Justice made the allegation while briefing newsmen in Abuja on Wednesday.

Malami said the government’s initial suspicion that the currency was being deliberately undermined by ‘economic terrorists’, had been confirmed.

The Minister stated that the unscrupulous elements, having failed in their attempt to compel the government to devalue the naira, have resorted to creating an artificial currency situation to undermine the economic programme of the present administration.

He revealed that some of the tactics employed include- round-tripping of foreign exchange sourced from the Interbank Market, rendition of false foreign exchange utilisation data, non-repatriation of export proceeds, among others.

“As a responsible government, we cannot allow such a situation anchored on unlawful alliances and criminal enterprise to continue unchecked, when it is apparent that its primary objective is to sabotage the economic agenda of the present administration.”

“We are witnessing manipulative and coordinated speculative activities in the foreign exchange market leading to the current wide differential between the official rate at the Central Bank of Nigeria and the parallel market rate, respectively, in a manner that defies rational economic analysis.”

“These nefarious speculative activities exert further pressure on the Naira exchange rate and have created a very wide artificial differential between the aforesaid two rates which are now being exploited by unscrupulous individuals and institutions.”

“Accordingly, the differential has given rise to sharp practices and rent seeking activities by these entities that run contrary to various provisions of the laws governing the conduct of the foreign exchange market and our anti-money laundering regime.”

“In consonance with the policy thrust of this administration to have a zero-tolerance level for corruption, I have therefore directed the Economic and Financial Crimes Commission and other relevant security agencies to further investigate and confirm the information already available to government about the nefarious activities of these elements within and outside our national institutions.”

The AGF further stated that the government is aware of the activities of certain cabal within some strategic national institutions, who have chosen to use their accomplices within the system to manipulate the foreign exchange market for personal gains to the detriment of the national economy and Nigerians as a whole.

“Our response will therefore be decisive, robust and sustained in order to save our national economy. Pursuant to the outcome of the investigations, all persons indicted will be brought to book and will face prosecution in due course”.

According to the minister, the federal government would in the next few days, come up with a broad-based strategy to stabilise the market and ensure the nation’s economic survival.

“While there have been an outcry for the government to reject calls for devaluation of the currency, there is no doubt the government has also been assailed by calls from several quarters to adopt the theoretical policy response of devaluating the Naira, in order to absorb the demand pressure of the currency”.

“It is counter-productive and has the potential to cause even more dislocations in the economy, particularly against the backdrop of our current status as a largely import-dependent economy”.

“In addition, government has emphatically restated its priority responses which will be geared towards moves to diversify the economy, promote greater accountability within the system through the blocking of all revenue loopholes, undertake a robust asset-recovery process in Nigeria and overseas and prosecute all treasury looters in accordance with the law.”