BDC operators ask CBN to lift forex ban

The Association of Bureaux De Change Operators of Nigeria (ABCON) has urged the CBN to lift the ban by 2022.

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

Its annual transaction volume of over N1 trillion is in jeopardy, says Gwadabe, as huge capital investment in the sector erodes and fades.

What BDCs Say
So, just as the CBN helped farmers get low-interest bank loans, Gwadabe suggested the CBN help BDCs receive diaspora remittances through International Money Supply Operators (IMTOs) and expand foreign capital flows into the economy.

Given the CBN’s challenges in maintaining weekly dollar interventions to BDCs, Gwadabe says the ABCON recognize the CBN’s challenges.

“We support the CBN’s exchange rate stability policies and security agencies punishing any BDC operator breaching corporate governance and compliance guidelines.

According to Gwadabe, the BDCs must be formally reintegrated to continue playing a significant role in exchange rate stability management.

Read also: Breaking: Ex-presidential Candidate, Bashir Tofa, Dies

He stated that ABCON is now training Compliance Officers on what is expected of them, especially monthly results and tracking illicit financial flows.

To ensure that the BDC sector thrives despite difficulties, ABCON has made various promises and sacrifices, according to Gwadabe.

“Recognizing BDCs in Nigeria’s financial sector is the first step towards creating a sustainable and viable forex market comparable to other developed economies. It will take hard work, good leadership, regulatory foresight, and sound government policies to get the Nigerian BDC sector where it wants to be.

If you missed it,
In July 2021, the CBN governor banned the supply of forex to BDC operators in Nigeria due to their violations of monetary policies.
The CBN Governor, Godwin Emefiele, also halted the licensing of new BDC operators and the processing of BDC applications for forex across the country.