The Association of Bureaux De Change Operators of Nigeria are now asking the Central Bank of Nigeria to make BDCs pay-out agents for $25 billion diaspora remittances market for enhanced dollar liquidity, writesThe BDC operators ensure that forex gets to retail end of the market for travelers needing personal or business travel allowances, parents or guardians seeking dollars to pay for their children’s schools fees abroad or people that need dollars to pay medical bills abroad.
ABCON President Aminu Gwadabe restated the prime role played by Central Bank of Nigeria -licensed BDCs in promoting exchange rate stability, forex liquidity and forex sale to retail end of the market. The ABCON meeting, which had the backing of CBN Governor Godwin Emefiele, was also attended by the apex bank directors, Representatives of Nigerian Financial Intelligence Unit , Economic and Financial Crimes Commission , Financial Action Task Force , DataPro CEO and over 550 top BDC directors, traders and other attendees nationwide.
He said with over 20,000 Nigerians employed by the sub-sector, there was need to support the BDC business for sustained economic growth and employment generation. “Directors of BDCs are being trained, and after training, whoever is found wanting will be recommended for sanctions,” he said. “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 demands hard work, quality leadership, regulatory foresight and sound government policies,” he said.
Gwadabe also called on the CBN to review the transaction margin for BDCs to enable operators to stay in business as the sector needs profitable margin to sustain operators’ businesses.He disclosed the N2 per dollar margin currently earned by BDCs was discouraging insufficient to sustain their operations and discourages foreigners from investing in the sector.
He said the agency needs the data from BDCs returns to know what is happening in the sector and take decisions that would favour the economy. In its presentation, DataPro, said data Protection is about data Security. It ensures that personal data is safeguarded from unlawful access by unauthorised parties. The firm said BDCs that collect personal data have the responsibility of protecting it from unauthorised access.