The Association of Bureau De Change Operators of Nigeria (ABCON) has urged the Central Bank of Nigeria (CBN) to empower licensed BDC operators to strengthen foreign exchange inflows and stabilise the Naira during the upcoming festive season. ABCON President, Dr. Aminu Gwadabe, emphasized that BDCs, as the closest link to retail forex users, are critical in capturing diaspora remittances and improving market liquidity.
Gwadabe highlighted that foreign exchange inflows typically surge at the end of the year as Nigerians abroad return home for the festive period, popularly known as “Detty December.” This season sees increased economic activity from tourism, entertainment, and family gatherings, which significantly drives dollar inflows. Lagos State alone generated about $71.6 million from tourism and entertainment during the 2024/2025 festive period.
According to the ABCON President, properly empowered BDCs could help retain more of these earnings locally. “The BDC subsector has the potential to help Nigeria realise and retain more foreign exchange if properly empowered. We can bring home funds currently trapped abroad through unlicensed fintechs,” he said. Gwadabe stressed that globally, BDCs provide liquidity at the retail end and serve as vital agents for diaspora remittances.
ABCON is calling on the CBN to democratize access to official forex channels for BDCs. Gwadabe said this would sustain market liquidity, curb exchange rate volatility, and improve transparency. He cited the period between 2017 and 2021, when active BDCs helped maintain the exchange rate around N365 per dollar, as evidence of their stabilising role.
In addition to access reforms, ABCON is collaborating with the CBN on recapitalisation and sectoral reforms to strengthen BDCs. Over 200 BDCs have registered under the new framework, with approvals and licences being fast-tracked. The reforms, including encouragement for mergers among smaller firms, aim to make Nigerian BDCs globally competitive while contributing meaningfully to exchange rate stability.
source: nairametrics