The president of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, says members of his association are in total support of a unified exchange rate.
He appeals to President Bola Tinubu to put a stop to the criminalisation of the BDC sub-sector.
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Gwadabe said the “generalisation and criminalisation of operators in the BDC sub-sector affects the perception and image of the country and not the leaders alone”.
“The government needs to de-risk and stop de-marketing the sector.
“This will ensure that Nigerians and foreigners alike can have confidence in the foreign exchange market.”
According to the president of ABCON, the regulated spread of the BDC is not achievable.
“You cannot peg my margin (profit) at ₦2/dollar, which is less than 0.0125%, when in other climes, the margin is about 10% and, at minimum, 6%.”
Reacting to the proposed exchange rates unification, fight against money laundering and terrorism financing, and the impact of CBN’s suspension on BDCs, Gwadabe said: “The multiplicity of the exchange rate is a very big challenge to BDC operators but what can we do.
“BDCs sell at the rate they sell because they have competitors and people in the unlicensed informal market who do not have offices but buy from customers at ₦750.
“Would you care to transact with the BDCs at ₦465 if you could do same at a higher rate of ₦750 in the unlicensed informal market?
This new administration of President Tinubu should address these challenges affecting the BDC sub-sector of the economy.
Institute A Local Content Bill
Furthermore, the president of ABCON suggests a local content bill that will modernise and transform the BDCs to compete globally.
“Call it Western Union, Ria, or Money Gram, these companies are not owned by Nigerians but by foreigners.
“It will be good for the new government to prioritise this.
“In the United Arab Emirates, the BDCs take care of 90% of the foreign currency cash needs of banks.
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“In India, over $30 billion in diaspora remittance is being operationalised through the BDCs.”
“The new government should ensure they make the BDCs a part of the financial inclusion we are yet to achieve.
“I am calling on the government to bring us back into business.”
He wants the government of Tinubu to fully embrace technology.
He believes it will help lower cases of money laundering and terrorism financing.
“Finally, our members should not allow themselves to be used by politically exposed persons but ensure they know their customers. Do customers’ due diligence, keep records and render returns.”
