May 2022 – Nigeria

What happened: During a partner monitoring to a local partner uncertainty arose with regards to the currency conversions that were carried out through non-commercial banks and forex bureau de change accumulating undeclared gains.

What did we do: NCA alerted MFA of the situation. NCA further contacted the partner management for documentation review and explanations. The partner supplied to NCA all required documentation of the currency transactions. The documentation was verified by NCA, and gains were returned to NCA.

What did we learn? The case shed light on currency issues. In the contexts where we work procedures for currency conversion is of vital importance. The partner should have sent prior communication to NCA requesting approval to use non-commercial banks for currency conversion. We encourage all partners to thoroughly go through the partnership agreement, general conditions, where currency handling is described.