Bureaux De Change (BDC) operators in Nigeria have asked the Central Bank of Nigeria (CBN) to review the transaction margin approved for them.
President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Mr Aminu Gwadabe, made this appeal on behalf of his members at a recent event.
He described the N2/$1 margin fixed by the apex bank as insufficient and discouraging as it was capable of chasing operators out of business and not able to attract foreigners from investing in the sector.
Mr Gwadabe said the N1 trillion annual transaction recorded by BDC operators was an indication of the importance of the industry as it’s capable of promoting exchange rate stability, FX liquidity and forex sale to the retail end of the market.
“The recognition of the role of BDCs in Nigeria 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 requires hard work, quality leadership, regulatory foresight and sound government policies,” Mr Gwadabe said at a recent online general meeting of ABCON.
At the event themed BDCs Operations: A Trillion Naira Sub Sector, Issues of Formalisation, Regulation and Way Forward, the ABCON chief said there is an urgent need to foster a better and positive image for the BDC sub-sector, noting that the BDCs needed a positive and rewarding image different from what the naysayers have fed the public with.
“We need to tell everyone that ABCON members are different. The majority of BDCs are not criminals. We need respect from members of the public,” he stated.
“In compliance with the provisions of Bank and Other Financial Institutions (BOFIA) as amended, every BDC renders returns to the CBN in prescribed format and within the deadline stipulated by the CBN.
“The records of the BDCs are made readily available to the CBN examiners as and when requested including carrying out customer due diligence, corporate governance and tax returns,” he further said.
– Business Post