Singapore-based Olam Group has strongly refuted recent reports from Nigerian media claiming its African units were involved in a multi-billion-dollar foreign exchange fraud. The company issued a statement categorically denying these allegations and confirmed that its audit committee is conducting a thorough review of the matter.
The Daily Nigerian and Prime Business Africa had reported an investigation by the State Security Service (SSS) into Olam Nigeria and Olam International, along with their associate firms, for an alleged foreign exchange fraud exceeding $50 billion. The reports suggested that the company had conducted a series of foreign exchange transactions involving round-tripping since 2015.
According to the reports, Olam recorded approximately $34 billion as capital importation with the Central Bank of Nigeria (CBN) at official rates through its Special Purpose Vehicles (SPVs). However, it is alleged that instead of reinvesting these funds in the Nigerian economy, the company engaged in forex round-tripping, selling the currency to various business entities, including oil and gas marketers, at parallel market rates.
Olam clarified that its unit, Olam Nigeria, has been responsive to information requests from Nigerian authorities and will continue to cooperate fully.
The Daily Nigerian also highlighted Olam Group’s previous FX-related infractions, not limited to Nigeria. It mentioned fines imposed by the United States Commodity Futures Trading Commission (CFTC) dating back to 2015. In 2021, Ivory Coast also issued a directive for Olam International to remit 142 billion CFA francs (equivalent to $262.7 million) for the repatriation of foreign currency.
The administration of President Bola Tinubu has expressed a commitment to conducting a comprehensive review of monetary policy and foreign exchange, and the former CBN Governor is presently under arrest and facing around 20 charges related to corruption.