BDC traders urge CBN to reconsider forex ban

The Association of Bureaux De Change Operators of Nigeria (ABCON) urged the CBN to reconsider the ban on allowing BDC operators to receive diaspora remittances in 2022.

This was revealed in a statement released over the weekend signed by ABCON President Alhaji (Dr) Aminu Gwadabe.

According to Gwadabe, the BDC industry’s annual transaction volume of over N1 trillion is threatened, as huge capital investments in the sector become obsolete, eroded and shrunk.

What the BDCs say

Gwadabe suggested that just as the CBN reduced the risks to the agricultural sector, making it easier for farmers to obtain single-digit loans from banks, the CBN could also reduce the risk of BDC operations, allowing them to receive diaspora remittances via International Money Supply. operators (IMTO) and deepen the flow of foreign capital to the economy.

ABCON, according to Gwadabe, recognizes CBN’s difficulties in maintaining weekly dollar interventions in BDCs due to declining foreign reserves, declining oil production and oil theft, resulting economic hardship. by Covid-19, fiscal policy issues, the debt burden, and election spending.

We support all measures that would lead to anti-money laundering and anti-terrorist financing (AML / CFT) compliance, supporting the exchange rate stability policies of the CBN and security agencies to punish any BDC operator in violation of corporate governance and compliance guidelines.

“We sincerely believe that the BDCs must be formally reinstated to ensure their powerful and continued role in managing exchange rate stability.“said Gwadabe.

He said ABCON is now training compliance officers to make sure they are aware of what is expected of them, especially in terms of monthly reporting of results and tracking illicit financial flows.

ABCON, according to Gwadabe, has established itself as a vital player in BDC’s business over the years and has made various promises and sacrifices to ensure that the sector thrives despite all difficulties.

Recognizing the role of BDCs in the Nigerian financial sector remains the first step towards building a sustainable and viable foreign exchange market, comparable to what can be achieved in other developed economies. But getting the Nigerian BDC sector to where it is needed requires hard work, quality leadership, regulatory foresight, and sound government policies.,” he said.

In case you missed it

  • In July 2021, the governor of the CBN banned the supply of foreign currency to BDC operators in the country, following various operators’ breaches of Nigeria’s monetary policy.
  • CBN Governor Godwin Emefiele also announced the end of licensing of new bureau de change operators (BDCs) and the continued processing of BDC forex applications across the country.

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