The Association of Bureaux De Change Operators of Nigeria (ABCON), an umbrella body for over 5,300 Central Bank of Nigeria (CBN)-licensed Bureaux De Change (BDCs) has advised the apex bank to de-risk BDCs operations to allow operators access foreign exchange (forex) from the autonomous market in 2022 and beyond.
In a statement released at the weekend, ABCON President, Alhaji (Dr) Aminu Gwadabe said the BDC sector is becoming comatose since July 2021 Monetary Policy Committee (MPC) meeting where the CBN suspended weekly dollar interventions to BDCs.
- Nigeria not ripe for direct primaries — IPAC
- FLASHBACK: Buhari hasn’t fulfilled all his promises because he lacks the right team – Tofa
He said that while BDCs are licensed to offer retail forex sales, across the counter forex transactions, they equally contribute to Nigeria’s economic development.
The BDCs, he added are ensuring order and confidence in the forex market, providing data for monetary policy, channels for CBN intervention in the retail forex market and creation of over 15,000 jobs, among others.
According to Gwadabe, over N1 trillion annual transaction volume by the BDCs sector is under threat while huge capital investment in the sector is becoming redundant, gradually being eroded and winding up.
He, therefore, advised that just like the apex bank de-risked the agricultural sector, making it easier for agriculturalists to access cheaper loans at single-digit from banks, the CBN can also de-risk the BDCs operations to be able to receive diaspora remittances through the International Money Supply Operators (IMTOs) and deepen foreign capital flows to the economy.
Gwadabe said the ABCON understands the challenges faced by the apex bank due to the dwindling foreign reserves, declining oil output and oil theft, COVID-19 induced economic pains, fiscal policy challenges, debt burden and election spending, which are making it difficult for the CBN to sustain weekly dollar interventions to BDCs.
He suggested that the 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.