The Association of Bureaux De Change Operators of Nigeria (ABCON), Thursday, said it is seeking the merger of several Bureaux De Change (BDC) operators not recapitalisation of the industry.
ABCON President, Alhaji Aminu Gwadabe, who disclosed this in Lagos, said the group never asked for upward review of N35 million mandatory regulatory approved capital base for each BDC, but a merger of at least 10 BDCs to form new capital of N350 million.
The move, he said, would enhance the scope of operation and diversification of sources through various windows and reduce regulatory pressures.
He said merger of multiple BDCs into a stronger entity will prepare them for a higher role in the financial system, including handling of diaspora remittances or other offshore funds attracted to the economy to deepen forex access at the retail end of the market.
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Gwadabe said the merger of multiple commercial banks in the 2004 consolidation exercise by the Central Bank of Nigeria, CBN is an example that apex bank could adopt for the BDCs to streamline their numbers and present easily manageable operators for maximum impact in the foreign exchange market.
He said: “ABCON rejects reports calling for BDCs recapitalisation by a section of the media. The media quoted us out of context and we are working to put a proper narrative.
“Instead of allowing each BDC to be recapitalised to the amount proposed by the Economic Advisory Committee which will likely lead to the extinction of many of our members as happened in 2014 when an outright review of the capital base was the only option.
“We also advised that the CBN should not issue any license during the period to avoid venture capitalists taking over the business from the already skillful operators”
He said with over 40,000 Nigerians employed by the sub-sector, there was a need to support the BDC business for sustained economic growth and employment generation.
He said ABCON has over the years established itself as a key player in the BDC industry, and has also made several commitments and sacrifices to ensure that the sector continues to thrive despite all odds.
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