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Business News of Saturday, 4 November 2023


FX dealings followed CBN guidelines – Dangote

Aliko Dangote Aliko Dangote

The management of Dangote Industries Limited has refuted allegations that it engaged in illegal foreign exchange deals, warning those peddling the allegations of economic sabotage against the company to desist from such underhand practices.

It gave the warning following claims in some sections of the media (not The PUNCH) suggesting that the company was being probed for alleged illegal foreign exchange deals and money laundering by the country’s Special Investigator, Jim Obazee.

In a statement by its media team on Friday, DIL described the allegation as “spurious and a rehash of a similar report peddled out of malice by competitors, masquerading as a concerned Nigerian in 2016.”

Dangote recalled that the false stories started pouring in since 2016, adding that it was sad that some media houses fell for the false narratives.

Dangote said, “The same false report back in 2016 was now being given a fresh false slant, purporting it to be a new petition directed to the attention of President Bola Ahmed Tinubu and Obazee.

“Subsequently, different blogs and social media platforms have been carrying variants of this arrant falsehood to the detriment of our corporate reputation.”

DIL re-emphasised that foreign exchange for its numerous projects was sourced strictly from the Interbank Foreign Exchange market in compliance with the CBN approvals, adding that the “Letters of Credit” were established for the construction of the various operational plants and for the purchase of heavy equipment and spares required for the take-off of the Dangote cement plants.

“The terms and conditions for payments on the transactions were clearly spelt out in the Letters of Credit instruments and in line with the International Chamber of Commerce – Universal Customs and Practice for Documentation Credit – UCP 600.

“It is also crucial to note that the Letters of Credit in favour of Sinoma International Engineering Co Ltd (a Chinese Government owned company), being the major contractor who accounted for over 75 per cent of these expenditures were paid against the presentation of all relevant shipping documents.

“There was no single payment that was made through any Dubai company owned by us.”