The Association of Bureau De Change Operators of Nigeria (ABCON) has urged the Central Bank of Nigeria (CBN) to permit BDCs to conduct online dollar transactions and offer Point of Sale (POS) agency services. These measures, according to ABCON, would enhance liquidity in the forex market and contribute to exchange rate stability.
ABCON also called on the CBN to grant regulatory approvals that allow BDCs to access diaspora remittances, such as receiving International Money Transfer Operators (IMTOs) proceeds.
Aminu Gwadebe, the President of ABCON, emphasized that BDCs’ full participation in the retail segment of the foreign exchange market is essential for achieving a stable and robust exchange rate. He stated, “We at ABCON advise that BDCs should be allowed to access dollars or diaspora remittances through the autonomous forex windows like allowing operators to receive IMTOs’ proceeds, carrying out online dollar operations, and Point of Sale (PoS) Agency, among others.”
Diaspora remittances, according to Gwadebe, represent a significant opportunity for the CBN. To tap into this potential fully, it is necessary to create multiple channels for inflows, making it easier for Nigerians in the diaspora to send funds home.
Gwadebe emphasized the importance of involving BDCs in resolving the forex crisis and stabilizing the exchange rate. He noted that Nigeria has the potential to achieve a strong and stable exchange rate and create a highly liquid forex market that supports the domestic economy.
The continuous depreciation of the naira in both the official and parallel markets does not benefit BDCs and the domestic economy. Therefore, measures should be taken to reverse this trend and strengthen the local currency for maximum impact on the economy.
Gwadebe commended the CBN’s efforts to bridge exchange rate gaps, indicating the regulator’s genuine commitment to exchange rate stability. However, he believes that involving BDCs in the solution will result in a highly liquid market and stable rates.
One of the major concerns in the forex market is illiquidity. Besides this, ABCON has expressed dissatisfaction with unlicensed forex dealers engaging in speculative activities, which harm the sub-sector’s reputation. ABCON has been educating the public against patronizing illegal forex dealers and expects prompt and stringent enforcement of regulatory sanctions against non-compliance to deter others.
In conclusion, ABCON’s recommendations aim to strengthen the role of BDCs in the Nigerian forex market and contribute to exchange rate stability, liquidity, and effective diaspora remittance handling.
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