The Association of Bureaux De Change Operators of Nigeria, (ABCON), has urged the Central Bank of Nigeria, (CBN), to reconsider the ban to allow BDC operators receive Diaspora remittances in 2022.
This was disclosed in a statement released at the weekend, signed by ABCON President, Alhaji (Dr.) Aminu Gwadabe.
According to him, the BDC industry’s yearly transaction volume of over N1 trillion is in jeopardy, while enormous capital investment in the sector is becoming obsolete, eroding, and winding down.
Gwadabe suggested that, just as the CBN de-risked the agricultural sector, making it easier for farmers to get single-digit loans from banks, the CBN could also de-risk the BDCs operations, allowing them to receive diaspora remittances through International Money Supply Operators (IMTOs) and deepen foreign capital flows to the economy.
The ABCON, according to Gwadabe, recognises the CBN’s difficulties in maintaining weekly dollar interventions to BDCs due to falling foreign reserves, declining oil output, and oil theft, Covid-19-induced economic hardships, fiscal policy concerns, debt burden, and election spending.
“It is our sincere belief that the BDCs need to be integrated back officially to ensure their continuous potent role in exchange rate stability management”, Gwadabe said.
ABCON, according to him, has established itself as a vital participant in the BDC business throughout the years and has made various promises and sacrifices to ensure that the sector thrives despite all difficulties.
“The recognition of the role of BDCs in Nigeria’s financial sector remains the first step to building a sustainable and viable forex market that is comparable to what is obtainable in other developed economies. But getting the Nigerian BDC sector to where it is desired to be demands hard work, quality leadership”, he further stated.