EFCC Warns Lawyers Against Charging Clients in Foreign Currencies
EFCC warns lawyers against foreign currency charge
The Economic and Financial Crimes Commission (EFCC) has warned Nigerian lawyers against charging clients in foreign currencies, describing the practice as illegal and unethical.
The Commission also warned that legal practitioners found engaging in the practice could face prosecution as it steps up efforts to curb the use of foreign currencies for domestic transactions.
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EFCC Issues Warning to Legal Practitioners
The warning was issued by the Acting Zonal Director of the EFCC’s Lagos Zonal Directorate 2, ACE I Bawa Usman Kaltungo, during a meeting with the Nigerian Bar Association (NBA) Lagos Task Force on Illegal Practice of Law.
The delegation was led by the task force’s Head, Moshood Abiola.
Kaltungo expressed concern about illegal and unethical practices among some legal practitioners, particularly the practice of charging clients in foreign currencies.
He urged lawyers to comply with applicable laws and professional standards, warning that the EFCC would not hesitate to prosecute those found culpable.
EFCC Continues Campaign Against Dollarisation
The latest warning is part of the EFCC’s wider campaign against the dollarisation of domestic transactions.
In 2024, the Commission warned schools, supermarkets, hotels and other businesses against charging for goods and services in dollars or other foreign currencies within Nigeria.
The warning was issued by EFCC Chairman Ola Olukoyede, who said the dollarisation of domestic transactions could constitute a criminal offence under Nigerian laws.
The latest directive extends the Commission’s concerns to professional services, reinforcing its position that domestic transactions should comply with Nigeria’s applicable currency and financial regulations.
Implications for Property and Professional Services
The directive could also affect parts of Nigeria’s property market where professional services are sometimes linked to foreign-currency pricing.
Real estate transactions can involve lawyers, consultants, surveyors and other professionals, particularly in high-value transactions involving expatriates, foreign investors or diaspora clients.
The EFCC’s position means professionals operating in Nigeria will need to pay closer attention to how their fees and contractual arrangements are denominated and collected.
For property transactions, the issue is particularly relevant because legal fees, consultancy charges and other transaction-related costs can form part of the overall cost of acquiring or developing property.
However, the EFCC's warning specifically concerns lawyers charging their clients in foreign currencies and should not be interpreted as a blanket statement on every foreign-currency-related property transaction.
EFCC Highlights Recovery Activities
The warning comes as the EFCC continues to publicise its enforcement and asset-recovery activities.
The Commission recently disclosed that it had released ₦661.32 billion and $492.37 million to beneficiaries over a 34-month period following recoveries.
According to the EFCC, naira recoveries during the period reached ₦1.23 trillion.
Of the ₦661.32 billion released in naira, about ₦325.35 billion went directly to individuals and corporate bodies, while ₦335.97 billion was released to government agencies, revenue services, companies, institutions and other beneficiaries.
Stronger Enforcement Expected
The EFCC’s latest warning indicates that the Commission is continuing to scrutinise practices that it considers inconsistent with Nigeria’s financial laws and professional standards.
For lawyers and other businesses operating in Nigeria, the development highlights the importance of ensuring that domestic transactions comply with applicable currency regulations.
For the real estate sector, greater enforcement could also encourage clearer pricing and contractual arrangements, particularly where professional fees form part of property transactions involving local clients.
The EFCC’s position is clear: lawyers operating in Nigeria should not charge clients in foreign currencies where such charges violate applicable laws, and practitioners who disregard the warning could face prosecution.
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