The Nigerian Bar Association (NBA) Ikeja Branch Business Forum is set to host an insightful webinar titled “Nigeria Tax Bill 2024: Strategic Insights for Business Leaders and Legal Advisors”. Scheduled for Thursday, 20th February 2025, at 11:00 AM via Zoom, the event will provide a deep dive into the evolving tax landscape in Nigeria and its impact on corporate entities.
The webinar aims to equip legal and business professionals with strategic insights on the Nigeria Tax Bill 2024, ensuring they remain proactive in adapting to regulatory changes. It is a must-attend event for Corporate Commercial Lawyers, Company Secretaries, In-House Counsel, Tax Consultants, and Business Leaders, among others.
Justice Deinde Dipeolu of the Federal High Court in Lagos has remanded 13 Chinese nationals in the custody of the Nigerian Correctional Services, following their arraignment on charges of cybercrime, impersonation, and fraud. The defendants, alongside their company Genting International Co. Limited, were accused of 13 different crimes by the Economic and Financial Crimes Commission (EFCC).
The 13 defendants, including 11 men and 2 women, are alleged to have illegally accessed computer systems with the intent to destabilize Nigeria’s constitutional structure. The accused include Wang Zheng Ming, Li Yin Hui, Xiao Hong Will, Wang Jia Qi (also known as Xiao Tian), Long Shao Ming (also known as You), Zhang Xiao Lei, Liu San Hua, Chen Wenyuan (also known as Lee05mx20), Yang Sheng (known as Madison), and Rheeigh De La Vega (also known as Rheignalyn).
The EFCC’s legal team, led by Director of Legal Affairs Aso Peters, stated that the offences occurred in December 2024 and violated Sections 18 and 27 of the Cybercrimes (Prohibition, Prevention, Etc.) Act, 2015, as amended in 2024.
During the arraignment, all the defendants pleaded not guilty, except for Wang Zheng Ming, who rejected the EFCC-appointed lawyer and requested more time to secure his own legal representation. Justice Dipeolu adjourned the case to February 3, 14, and 21 for trial, ordering that the defendants remain in custody at the Nigerian Correctional Centre.
One defendant, Liu San Hua, is specifically accused of facilitating identity theft by hiring Nigerian youths to impersonate foreign nationals for financial gain. This act is said to violate Section 18 of the Cybercrimes Act, 2015. The charges also include using fake identities online to defraud victims, training Genting International employees in fraudulent practices, and other offences under the Advance Fee Fraud and Other Related Offenses Act, 2006.
According to the EFCC, the charges highlight serious attempts to undermine Nigeria’s security and financial integrity through cybercrime and fraudulent activities.
The Kano State Command of the National Drug Law Enforcement Agency (NDLEA) has successfully raided several notorious drug hotspots, leading to the arrest of 18 suspects involved in various drug-related offenses.
The targeted raids focused on high-risk areas known for illicit drug activities, including Fagge, Kwarin Kaya, Kofar Wambai, and Kofar Mata. During the operation, NDLEA operatives seized substantial quantities of illegal substances, such as Cannabis Sativa and Rubber Solution, as well as locally made dangerous weapons.
Assistant Superintendent of NDLEA, Sadiq Muhammad Maigatari, confirmed the success of the raids, stating that the operation, carried out on January 30, 2025, was part of the agency’s ongoing efforts to tackle drug-related crimes in the state.
“The operation covered several locations, including Fagge, Kwarin Kaya, Kofar Wambai, and Kofar Mata, where 18 suspects were arrested,” Maigatari said. “During the raid at Kwarin Kaya, some suspects tried to intimidate the officers from a distance, but the NDLEA remained firm, and the operation continued without incident.”
Maigatari reiterated the agency’s commitment to dismantling drug syndicates and addressing the growing problem of drug abuse in the state. He assured that the NDLEA would continue to prosecute those involved in drug crimes.
“The Command, under the leadership of CN AI Ahmad, is determined to ensure that communities are free from the dangers of drug trafficking and abuse,” he added.
The National Industrial Court of Nigeria (NICN) sitting in Lagos, and presided over by Honourable Justice S. A. Yelwa has delivered a ruling in the case of Ressortir Nigeria Limited v. Gideon Okoli (Suit No: NICN/LA/198/2022). The case centered around a preliminary objection raised by the Defendant/Applicant, Gideon Okoli, challenging the jurisdiction of the court on the basis of improper service of originating processes.
The court was called upon to determine the fundamental principle of fair hearing and the necessity of proper service of court processes before a court can validly assume jurisdiction over a matter.
After reviewing the arguments and affidavits presented by both parties, the court ruled in favor of the Defendant/Applicant, holding that the failure to personally serve the originating processes on the Defendant rendered the proceedings null and void.
The court reaffirmed that personal service of originating processes is mandatory unless an order for substituted service is granted, noting that the Defendant was not personally served. Since the service was defective and could not confer jurisdiction on the court.
The court further found that merely dropping the documents at the entrance gate of the Defendant’s last known residence did not constitute valid service. The bailiff should have taken additional steps to ascertain whether the Defendant was still residing there.
The court emphasized that jurisdiction is a threshold issue that must be satisfied before a court can hear a case and since the service was improper, the court lacked jurisdiction to entertain the suit.
Reacting to the decision of the court, the counsel to the Defendant, Anthony Ezeani noted that the decision in Ressortir Nigeria Limited v. Gideon Okoli reinforces the principle that proper service of court processes is a fundamental requirement for jurisdiction. According to him Courts in Nigeria have consistently held that failure to serve an originating process renders any subsequent proceedings a nullity, no matter how well conducted.
Ikeja, Feb. 1, 2025 – In a bid to promote the health and well-being of its members, the Nigerian Bar Association (NBA) Ikeja Branch has launched a routine medical checkup initiative. Organized by the Welfare Committee and sponsored by the branch, the program will take place during every branch meeting.
Services available include blood pressure monitoring, blood sugar testing, cholesterol level checks, and health consultations. The next session is set for February 3, 2025, from 11:00 AM to 1:00 PM at the Bar Centre.
NBA Ikeja members are encouraged to participate and take proactive steps toward maintaining good health.
A Bayelsa State High Court in Yenagoa has sentenced four individuals to death by hanging for conspiracy and kidnapping. The convicts—Manager Etonzor, Daniel Derietiedei, Inimotimi Rufus, and Tari Firstman—were found guilty under Section 2 (1) of the Bayelsa State Law 2013 by Justice Patience Diri in the case No. YHC/43c/2021.
According to the police prosecution, the four men, led by Etonzor, attacked the November Dredging Company’s worksite in Ayama Ijaw, Southern Ijaw Local Government Area. While their attempt to abduct the company’s owner failed, they opened fire to scare off the workers. However, they managed to abduct the company’s 28-year-old secretary, who was hiding in the office.
The kidnappers forced her to hand over N400,000 from the company’s safe before taking her to a boat and transporting her to their hideout. A ransom of N6.5 million was paid for her release after she spent over a month in captivity.
Following her release, Bayelsa State Police’s Anti-Kidnapping Squad launched a thorough investigation, leading to the arrest of Etonzor, the gang’s leader, and the identification of the other accomplices.
During their trial, the defendants claimed their confessions had been coerced through force and intimidation by the investigating officers. However, the court admitted their statements, along with witness testimonies, as evidence.
In her ruling, Justice Diri found the four men guilty of conspiracy and kidnapping, sentencing them to death by hanging.
A 24-year-old farmer, Bilal Salisu, has been sentenced to 30 months in prison by the Jos Magistrates’ Court for diverting N1,478,000 intended for the purchase of chemicals. The sentence was passed on Tuesday after Salisu pleaded guilty to the charge.
Magistrate Shawomi Bokkos also offered the convict an option to pay a N50,000 fine or serve an additional six months in prison. Furthermore, Salisu was ordered to pay a compensation of N1,287,000 to the victim, Ahmad Sabiu, who had entrusted him with the money. Failure to do so would result in an extra two years of imprisonment.
The crime, reported on December 7, 2024, at the Angwan Rogo police station, involved Salisu taking the money for personal use instead of fulfilling his obligation to purchase the chemicals. During the police investigation, N200,000 was recovered from the defendant.
The offence violated the Plateau Penal Code Law, with Salisu’s actions leading to his conviction.
On Tuesday, January 21, 2025, Mazi Afam Osigwe, SAN, President of the Nigerian Bar Association (NBA), received the newly elected executive members of the International Federation of Women Lawyers (FIDA) Nigeria at the NBA House in Abuja. The delegation was led by Eliana Martins, FICMC, the Country Vice President of FIDA Nigeria.
Osigwe congratulated the new leadership on their election and praised the outgoing executives for their outstanding contributions to the organization. He particularly highlighted the appointment of Ezinwa Nwanyieze Okoroafor, a former Country Vice President of FIDA Nigeria, as the International President. Osigwe described her elevation as a testament to the organization’s global influence and impact on the legal field.
The FIDA Nigeria leadership used the occasion to reaffirm their commitment to advancing gender justice and protecting children’s rights in Nigeria. They also shared details of ongoing initiatives aimed at supporting victims of gender-based violence and promoting gender parity within the legal profession.
In his remarks, Osigwe expressed the NBA’s full support for FIDA Nigeria’s mission to address issues of gender-based violence, discrimination, and child protection. He emphasized the NBA’s commitment to creating a more inclusive legal profession and a safer environment for women and children.
The Chairman of the NBA 2025 Annual General Conference Planning Committee, Chief Emeka Obegolu, SAN, also assured the FIDA leadership of an opportunity to showcase their impactful work at the upcoming conference in Port Harcourt. He encouraged FIDA members to take advantage of early bird registration for the event.
The Nigerian military has released many of the 142 soldiers who had been detained for offenses ranging from 18 months to five years without trial. The soldiers, who were accused of various offenses such as stealing or losing weapons to insurgents, had been in detention for prolonged periods, with some on “open arrests.”
This release follows a recent visit by Major General A.G.L. Haruna, the General Officer Commanding (GOC) of the 7 Division in Maiduguri, and Major General W. Shaibu, Theatre Commander. Together with Major V.L. Williams, Deputy Director of Legal Services, they visited detention centers holding the soldiers.
The release is part of an effort to address public outcry regarding the prolonged detention. In response, the military set up a court-martial under Major General A.C. Adetoba to expedite trials, although not all detained soldiers have been tried. The court-martial commenced in July 2024 with a panel of senior military officers. However, some soldiers have been recommended for release due to the minor nature of their offenses or because they were not rotated or given time off during extended deployments.
The soldiers’ cases highlight the mental and physical toll the prolonged deployments and lack of leave have taken on them, with some soldiers suffering from war fatigue, depression, and the breakdown of family life due to their absence. Many have not seen their families in over two years, and some report that their marriages have dissolved during their long absences. There is also concern over inadequate welfare and feeding arrangements, with some commanders neglecting the troops’ well-being.
As the fight against Boko Haram continues, the military is under pressure to address these welfare concerns and ensure that soldiers are treated fairly while on duty.
The Nigerian Foreign Exchange Market (NFEM) has long been a cornerstone of the nation’s economic framework, playing a critical role in facilitating international trade, managing currency flows, and stabilizing the national economy. In a bid to strengthen the integrity, transparency, and efficiency of this vital market, the Central Bank of Nigeria (CBN) recently introduced two transformative regulatory frameworks: the Nigerian Foreign Exchange Code[1] (“FX Code”) and the Electronic Foreign Exchange Matching System (EFEMS). These initiatives, though distinct in purpose, work synergistically to address systemic inefficiencies, mitigate unethical practices, and align the Nigerian Foreign Exchange Market (NFEM) with global best practices.[2]
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The Foreign EXchange Code serves as a robust regulatory framework designed to promote ethical conduct, sound governance, and comprehensive risk management among market participants, while EFEMS leverages technology to enhance market transparency and efficiency.[3] Together, these frameworks mark a significant evolution in the structure and oversight of Nigeria’s foreign exchange market.
This article undertakes an analytical review of the FX Code, focusing on its principles, compliance requirements, and potential implications for market participants. It further examines how the FX Code integrates with EFEMS to foster a transparent and efficient foreign exchange market, ultimately contributing to the broader goal of economic stability and investor confidence in Nigeria. Through this analysis, the article highlights the strengths, challenges, and prospective outcomes of these regulatory reforms.
Principles of the Foreign Exchange Code
Stirred by the Foreign Exchange Global Code (FEGC), the FX Code is tailored to address the peculiarities of Nigeria’s economic environment and FX trading landscape. Its principles encapsulate ethics, governance, transaction execution, risk management, information sharing, and transaction settlement, all aimed at fostering a well-regulated and internationally compliant market structure. They as follow:
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Ethics
Ethical conduct constitutes the bedrock of the FX Code, emphasizing the necessity for honesty, integrity, and fairness among market participants. By mandating ethical behavior, the Code seeks to eliminate malpractices such as front-running, insider trading, and other exploitative behaviors that erode market confidence. Upholding ethical standards ensures that the NFEM operates as a trustworthy platform where participants engage in transactions underpinned by mutual respect and compliance with legal and regulatory frameworks. This ethical dimension is particularly critical given the volatility and susceptibility of the foreign exchange market to speculative and predatory practices.[4]
Governance
The FX Code imposes stringent governance obligations on Authorised Dealers, mandating the establishment of robust institutional frameworks to oversee foreign exchange activities. These governance structures are designed to enhance accountability, deter conflicts of interest, and instill discipline within trading operations. Effective governance aligns with international benchmarks, thereby positioning Nigeria’s FX market as a credible participant in the global financial system.[5]
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Ethics
Ethical conduct constitutes the bedrock of the FX Code, emphasizing the necessity for honesty, integrity, and fairness among market participants. By mandating ethical behavior, the Code seeks to eliminate malpractices such as front-running, insider trading, and other exploitative behaviors that erode market confidence. Upholding ethical standards ensures that the NFEM operates as a trustworthy platform where participants engage in transactions underpinned by mutual respect and compliance with legal and regulatory frameworks. This ethical dimension is particularly critical given the volatility and susceptibility of the foreign exchange market to speculative and predatory practices.[4]
Governance
The FX Code imposes stringent governance obligations on Authorised Dealers, mandating the establishment of robust institutional frameworks to oversee foreign exchange activities. These governance structures are designed to enhance accountability, deter conflicts of interest, and instill discipline within trading operations. Effective governance aligns with international benchmarks, thereby positioning Nigeria’s FX market as a credible participant in the global financial system.[5]
Execution of Transactions
Transparency and clarity in trade execution are pivotal under the FX Code. All FX transactions conducted via the Electronic Foreign Exchange Matching System (EFEMS) are required to adhere to predefined roles and responsibilities, ensuring accuracy and fairness. Standardizing transaction execution processes minimizes discrepancies, reduces transactional disputes, and instills confidence among market participants. This principle is particularly important for fostering a level playing field where all participants, regardless of their market power, engage on equitable terms.[6]
Risk management forms a critical pillar of the FX Code, as the volatile nature of foreign exchange trading necessitates stringent measures to safeguard against operational, financial, and legal risks. Authorised Dealers are required to implement comprehensive risk assessment frameworks that enable the identification, monitoring, and mitigation of these risks. Additionally, compliance protocols are mandated to ensure adherence to domestic regulations and alignment with international norms. By embedding a culture of proactive risk management, the FX Code seeks to protect the NFEM from systemic disruptions and promote its long-term stability.[7]
Information Sharing
The FX Code strikes a delicate balance between transparency and confidentiality in information sharing. While it promotes the dissemination of accurate and timely information to relevant stakeholders, it also safeguards sensitive data from misuse. Market participants are obligated to disclose information only within legally permissible limits, thereby upholding privacy while facilitating regulatory oversight. This principle is instrumental in fostering trust and accountability, as participants can engage in the market with the assurance that their proprietary information is not exposed to unauthorized access or exploitation.[8]
Transaction Confirmation and Settlement
Efficient confirmation and settlement of transactions are integral to the Foreign Exchange Code’s framework. By mandating standardized procedures for documenting and finalizing trades, the Code minimizes disputes and operational bottlenecks. Proper transaction settlement not only ensures accuracy but also contributes to market stability by fostering seamless trading activities. This principle is particularly significant in an era where technological advancements like EFEMS are redefining the speed and scale of FX operations.[9]
Implications of the Foreign Exchange Code in Nigeria
The implementation of the Foreign Exchange Code, alongside the Electronic Foreign Exchange Matching System (EFEMS), is poised to significantly reshape the operations of the Nigerian Foreign Exchange Market (NFEM) while advancing broader economic objectives. The dual frameworks collectively enhance market transparency by offering real-time data and instituting stringent ethical guidelines, thereby mitigating speculative practices and fostering a more reliable trading environment. Moreover, EFEMS introduces a streamlined and technologically advanced system for trade execution, ensuring accountability and integrity in alignment with the FX Code’s governance principles. This integration promotes operational efficiency, reduces transactional discrepancies, and sets a benchmark for transparency in foreign exchange transactions.[10
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These reforms also hold the potential to bolster investor confidence in the NFEM, aligning the market with global best practices and creating a more attractive climate for both domestic and international investments. However, their adoption comes with challenges, particularly for Authorised Dealers, who must incur costs for system integration, staff training, and ongoing compliance reporting. While these initial expenses may present hurdles, they are justifiable investments given the long-term benefits of a more stable, transparent, and efficient FX market, ultimately contributing to Nigeria’s economic resilience and fostering sustainable growth.[11]
Compliance Requirements for Market Participants
The Foreign Exchange Code outlines a phased compliance timeline to ensure a seamless transition for Authorised Dealers:[12]
Initial Adoption (October 14, 2024)
Authorised Dealers must align their operations with the FX Code’s standards, particularly in ethics, governance, and risk management. This phase serves as a foundation for their transition to EFEMS.
Self-Assessment and Reporting (December 31, 2024)
By the end of 2024, Authorised Dealers must conduct self-assessments to evaluate their adherence to the FX Code. These assessments must be documented in compliance reports and submitted to the CBN, along with a Board-approved compliance plan.
Quarterly Compliance Reporting (From January 2025)
Starting in 2025, Authorised Dealers are required to submit quarterly compliance reports to the CBN, ensuring ongoing adherence to the FX
Integration of the FX Code with EFEMS
The FX Code and EFEMS are mutually reinforcing frameworks, designed to work in tandem to modernize and stabilize the NFEM. While EFEMS provides the technological infrastructure for transparent and efficient trade execution, the FX Code ensures that market participants adhere to ethical and operational standards during these transactions through the following means;[13]
Real-Time Data and Transparency
EFEMS offers real-time matching of buy and sell orders, as well as real-time data on FX rates and trade volumes. The FX Code complements this by mandating that all transactions processed through EFEMS are executed ethically and transparently, ensuring that the technological advancements of EFEMS are not undermined by unethical practices.
Enhanced Oversight
Through EFEMS, the CBN gains a comprehensive view of all FX transactions, allowing for closer monitoring of market activities. The FX Code ensures that this oversight is supported by ethical and governance standards, creating a robust framework for reducing market distortions and speculative activities.
Preparation and Testing
The test run of EFEMS in November 2024 serves as a practical opportunity for Authorised Dealers to integrate the FX Code’s principles into their operations. This ensures that by the time EFEMS goes live on December 1, 2024, market participants are fully equipped to operate within the dual frameworks.
Conclusion
The principles of the Foreign Exchange Code collectively establish a robust foundation for a transparent, ethical, and efficient Nigerian foreign exchange market. By addressing core areas such as governance, execution, and risk management, the Code aligns the Nigerian Foreign Exchange Market with international best practices while catering to the unique dynamics of Nigeria’s economic environment. These principles are instrumental in fostering investor confidence, enhancing regulatory compliance, and promoting economic stability, making the FX Code a vital component of Nigeria’s financial reforms.
Snippet: The principles of the Foreign Exchange Code collectively establish a robust foundation for a transparent, ethical, and efficient Nigerian foreign exchange market.
Keywords: Foreign, Exchange, Code, Ethical, Central Bank of Nigeria, Market, Over-sight, Principles, Compliance, Financial, Economic.
Pursuant to the CBN Act 2007 and BOFIA Act 2020. ↑
